service charges

Hello KWalls3543,

Welcome to the QuickBooks family.

The charge amount for the late fee depends on your internal agreement with the customer. To charge an additional fee in QuickBooks Online, you must either create a separate invoice for the charge or include it as another line item on your invoice.

To create a separate invoice or include it as another line item on your invoice, you can check this article:

Can I enter finance charges, service charges or late fees on customer invoices?.

Since our system doesn't provide a default charge amount, I suggest you seek an accountant for an expert advise. This will also help you avoid mistakes from your books that will cause extra work.

I'm here anytime you need assistance with recording a late payment. Wishing you all the best.

Hey @KWalls3543,

That’s a great question, and I think most people would probably say “it depends.”

The first thing to ask is, what’s customary in your industry. That sets a baseline.

Then ask yourself, is your business the same as others who set these types of prices? Simply, do you want go with what’s normal or not - that’s purely your preference.

Then I’d move on to your delivery so goods and services. If your digital or a brick and mortar, that can have an impact on what’s “customary” given the speed or immediacy of services.

The final question, does your particular client base have any issues paying on time? Do they need to see big writing on the wall to know what might happen if they don’t? I’d go higher than what’s customary if so, lower if not.