Charging Late Fees Bookkeeping Question

by Marianne
(Colorado)

Charging Late Fees

Charging Late Fees

I am a graphic artist. I need to start charging a late fee for unpaid invoices over 30days.

I use Quick Books, what do I put in the Annual Interest Rate box, Minimum Finance charge box for the state of Colorado?

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Jul 17, 2023
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starstarstarstarstar 		Late Fee Charges
by: BB

In general, when setting up late fees for unpaid invoices in QuickBooks, you have the flexibility to define the annual interest rate and minimum finance charge according to your business's policies.

The annual interest rate typically represents the percentage rate at which the late fee will be calculated on the outstanding balance.

The minimum finance charge is the minimum amount that will be charged as a late fee, regardless of the invoice amount.

It's important to consider any legal requirements or industry standards that may apply when determining these values.

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Semi Annual Mortgage Fee

Fees

Fees

Should I record the semi-annual fee related to my home mortgage as an expense in my accounting records?

Or should it be allocated to a different account?

I want to ensure that I am accurately reflecting the cost of the fee in my financial statements.

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Jul 17, 2023
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starstarstarstarstar 		Recording Semi Annual Fee
by: BB

When it comes to recording the semi-annual fee associated with a home mortgage, it is important to consider the specific nature of the fee.

Typically, mortgage fees are considered as part of the cost of acquiring the mortgage and are amortized over the life of the loan.

Therefore, it is common practice to allocate the fee to a separate account called "Mortgage Fees" or a similar account, rather than treating it as an expense.

This approach ensures that the fee is appropriately reflected in your financial statements and aligns with accounting principles.

However, it is always advisable to consult with a professional accountant or financial advisor for personalized guidance based on your specific situation.

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