Enable automated reminder emails and automated late fees to save time with customer payment follow-up.
Click the Invoice Settings tab, then select Edit invoice reminders.
Edit invoice reminders allows you to automate payment reminders (both prior to the due date and past due date). Automatically add late fees to outstanding invoices, and set a universal Sales Tax rate for all invoices you create.
You must click Save to apply any changes within this section.
- Send reminders: When turned on, the system will send a reminder email to your customer the day before an unpaid invoice is due.
- Send past due reminders: When turned on, the system will send reminder emails to your customer when the unpaid invoice is past the due date by 3 days, 7 days, and 14 days. Past due reminder emails stop once your customer pays the invoice.
Note: both settings are turned on by default.
Late Fees are one-time fees that are sent as a separate invoice. The late fee invoice will reference the original past due invoice so both you and your customer have this for record-keeping purposes.
Once toggled on, the following options are available to customize late fees:
- Enable grace period - The number of days after an invoice due date that a customer can pay before considered late.
- Enable % of invoice fee - This will charge the late fee as a percentage of the amount owed on the original past due invoice.
- % of invoice: The percentage of the original invoice that will be charged as a late fee.
- Minimum late fee - This option will set a minimum amount to be charged. The late fee will be at least the minimum amount unless the percentage exceeds this value.
For example: a customer is past due for a $100 invoice. You have set a 3% fee with a $5.00 minimum. Since the percentage would only generate a $3.00 charge, the $5.00 minimum fee would be applied.
- Enable flat fee - This option charges your customer a standard late fee for any past due invoice.