Apply late fees automatically — without the awkward call

The day before an invoice is due, an optional courtesy SMS and email go out so no one is blindsided. If the due date passes unpaid, the system applies the late fee exactly as your contract terms state, generates a new invoice with the fee as a clear line item, and notifies the customer with a pay-by-link. You stay in the loop through a daily digest of which fees were applied. The point is pricing discipline that runs the same way for every customer, every time — so you keep the revenue your terms entitle you to without ever having to have the confrontation yourself.

1. 1

   Trigger

   An invoice in your accounting tool (Xero / QBO) reaches its due date without being marked paid.

2. 2

   Action 1 (day before)

   Optional courtesy warning SMS and email reminding the customer the invoice is due tomorrow, with a pay-by-link to settle before any fee applies.

3. 3

   Action 2 (due date passes)

   The late fee is applied at the rate you set in your terms and a new invoice is generated with the fee shown as its own line item.

4. 4

   Action 3

   The customer is notified that the fee has been applied and is sent the re-issued invoice and a one-tap payment link.

5. 5

   Outcome

   The fee is enforced consistently for every overdue invoice and logged in your daily digest — no awkward phone call, no manual maths.

• r/business

  'Late fees. Their profit margins probably aren't huge either, so 3% after 30 days is gonna bite.'