Who would like Wave to auto add late fees to invoices?

Goff

I'm in the rental property business and it is often that we charge late fees for rent not received by the 5th of each month.
It would really be nice if the late fee would auto add. I use freshbooks which does this and also been a quickbooks user for years.
I came across Wave and would like to continue use but didn't realize such a simple feature seems to be unavailable unless I'm just not seeing it.

Ryan_W

Hey @Goff,

Thanks for putting that poll together! Although the creation of automatic late fees isn't something we support right now, I can show you how to add it manually at your discretion. Once the invoice goes overdue, you can edit the invoice to add an extra item line for the fee (taxing it at your discretion based on where you are), and resend it.

Goff

Thanks

I'd really like to use the software but I also can't find any way to tag expenses per property. Can you tell me if that is an option. Like adding classes or something?

Samd

That is definitely something that is requested a lot @Goff, and our Product Team is looking at it. Regardless I'll submit a feature request right now. One workaround we have at the moment (that isn't necessarily ideal) is to create an individual business profile per property. Another option would be to create individual expense accounts in Chart of Accounts, per property (e.g. Property A - Maintenance, Property A - Electricity, Property B - Maintenance, etc) and categorize transactions as they come in/are added.

Goff

Thanks

Rahim

@Goff Following up on this thread from the product team

For automatic late fees, are these fees percentage based, or flat amounts? and are you looking for the fees to be taxable or after tax?

In what scenarios would you want to not charge the fee and what rules would you need to enforce with this?

Last one: How often do you reverse the fees or refund the fees/put it towards next months rent instead?

Thanks for the feedback so far!

Rahim

Goff

I have rental property and would like the software to add 10% late fee after the 5th of each month if monies aren't posted. I remove late fees 20% of the time.

UHRP3

Have to manually add late fees to invoices

@Rahim said:
@Goff Following up on this thread from the product team

For automatic late fees, are these fees percentage based, or flat amounts? and are you looking for the fees to be taxable or after tax?

In what scenarios would you want to not charge the fee and what rules would you need to enforce with this?

Last one: How often do you reverse the fees or refund the fees/put it towards next months rent instead?

Thanks for the feedback so far!

Rahim

@Rahim

I'll summerise how its expected.

Q: For automatic late fees, are these fees percentage based, or flat amounts?

See below example

B Bill Amount
I Rate Of Interest
B0 Fine Per Day
N Delay in Payment in Days
F Total Fine For N Days
A Final Payable Amount

Calculation of per day fine
B0 = [B x I/100]365

Calculation of total fine
F = B0 X N

Calculation of final amount
A = P+F

Apart from the above process an option to apply flat amount should also be present

Q: and are you looking for the fees to be taxable or after tax?

Late fees/fine is revenue and is always taxable

Q: How often do you reverse the fees or refund the fees/put it towards next months rent instead?

This is a business decision, in a very rare scenario I have seen that its componded to next month. (Only if you are in a business of private money lending)