If you charge clients interested for past do balances, you can have your Billing set up to automatically add this on to invoices after the due date has passed.
It is configurable on both a Firm and Matter level, with options for both Simple and Compound Interest.
Set Up Interest
To set it up on the Firm Level:
- Select Firm Settings from the drop-down menu beside your avatar.
- Then select Billing & Accounting from the menu bar and Billing Options from the expanded menu.
- In the bottom right-hand side a checkbox appears beside an option to Charge interest by default for invoices that are paid late.
- In the bottom right-hand side a checkbox appears beside an option to Charge interest by default for invoices that are paid late.
- Select the checkbox to view options to customize how the interest accrues.
- Your options include:
- Sliding the toggle to the right to automatically Enable Interest on all New Matters.
- Entering a % and selecting either the Simple or Compound radio button.
- Simple - Interest continues to accrue on the existing fee total,
- Compound - Interest accrues on top of the fees and interest charges.
- Enter how often interest should accrue past the due date of the invoice.
-
Note: Percentage is calculated on an annual basis
- If you are looking to charge 1.5%, you would set it at 18% (18/12=1.5)
- Enter a number to designate day grace period.
- Grace period charges them that number of days less. For example, if interest accrues every 30 days with a 5 day grace period, the client is only charged for 25 days worth of interest.
- Select the checkboxes to include Expenses and/or Tax in the interest charges.
- Configure the language on the narrative in the Name of Interest Charge field. For example, by default the narrative will say "Interest on past due invoice (invoice #)". You can change this to a different label such as "Late Fee on past due invoice".
- Click Update.
For New Matters
When creating a new Matter, Interest will be available under the Billing section.
If it is automatically enabled on new Matters, you will see the interest prefilled with the details in your Firm Settings. Those pre sets can then be altered for that specific matter before saving the matter.
For Existing Matters
Navigate to the Matter you are looking to establish interest for, then select the Matter No to open the Matter details and select the Options tab.
Scroll down to Interest Options under Billing Options.
Select the checkbox beside Charge interest by default for invoices that are paid late, then fill in the details specific to this Matter.
Click Update and the system will begin accruing interest automatically based on the percentage established. The interest will accrue at midnight on the date designated past the due date. It will be visible under the Interest tab in the Time Section.
Interest is considered billable activity, but cannot be edited from the Interest list. It will pull onto your next billing cycle.