Vent: That conversation with my accountant made me feel like an idiot

He asked why I wasn't charging late fees after 30 days and I just sat there quiet... I assumed clients would pay eventually but now I'm out $1,200 from three jobs last quarter. What do you guys use for late payment penalties that actually works?

2 comments

2 Comments

william_craig75d ago

Have you tried just adding a simple 1.5% monthly interest charge on late invoices? It's standard in most contracts and clients usually pay up quick once they see that number.

brooke_murray4d ago

Oh, interest charges can work, but I've noticed over time that some folks just treat that as the cost of doing business. They'll pay late anyway and figure the 1.5% is just a discount for them. It kind of shows how we've all gotten used to small fees just being part of the system now, like parking tickets or bank charges.