Late Fee Manager
Late Fee Manager is a real niche solution in the Xero Add-on space, and it is easy to overlook niche solutions. If you are in finance, debtor management or a business that charges interest, late fees, or even service charges for late payments – or you want to start doing it but don’t have the time to muck around with the admin’ – then Late Fee Manager could be the Xero Add-on solution for you.
Late Fee Manager works on the principle that by charging fees, interest, etc, you will motivate your customers to avoid these fees and instead, make payments on time or early.
Being such a specific solution, Late Fee Manager has a very simple and intuitive interface that focuses on its core functionality, which is, of course, invoicing out late fees, interest and charges and ensuring they are collected by issuing out automated reminders.
The main focus of the interface is the dashboard, which gives you a snapshot of everything that is happening at a glance, including reminders, fee types, total fees, and the terms at which you charge out the fee.
The other main feature is the late fee page, which allows you to customise what charges you wish to charge, i.e. interest, service charges and fees. A late fee history page is also provided that gives you a history of charges sent to customers, these are batched by day, you can drill down further to get the breakdown of each invoice and a link to the actual invoice created in Xero.
Who would this really be useful for?
For companies that have a policy of charging late fees, service charges and interest, Late Fee Manager would be an ideal add-on. The task of doing this in an accounting environment is often very cumbersome and time-consuming, as you have to go about finding all the invoices that are overdue and then manually calculate interest, charges, etc. and then generate all the invoices and reference them back to the original invoice.
Now if its only one or two invoices, that’s not a big deal. But I have worked in companies where they have 2000 plus customers and generate thousands of invoices a month, in a setting such as this, doing this manually would be a full-time job. So paying US$29 a month is a no-brainer.
Late Fee Manager comes in 4 different versions:
- Sole Proprietor – $19/Month – Up to 100 open invoices – monthly average.
- Small Business – $49/Month – Up to 500 open invoices – monthly average.
- Corporate – $99/Month – Up to 500 open invoices – monthly average.
- Enterprise – customised plan for 1000+ open invoices – monthly average.
All options offer:
- Unlimited late fee payments generated
- Unlimited payment reminders
- Personalize all email notifications
In a nutshell, Late Fee Manager triggers off Xero invoices that aren’t paid on time or in full. Late Fee Manager then applies the fees to those invoices. Finally, it automatically emails the new invoice referencing the original Xero invoice number and new balance. This process is completed every 24 hours and creates a history of the daily batches.
In my experience as a commercial accountant/financial controller over the last 17 years, out of 100 suppliers, I must say maybe just 1 out of the 100 have charged out fees, interest and service charges. The major deterrent is definitely not the legal aspect of doing so, but rather the time it takes to do it all.
Late Fee Manager’s solution might be a real game changer in this regard as people come to understand how easy it is to use. It really is a very simple product to use which focuses on doing a few things really efficiently and very well. So if you currently already process fees and charges, or are thinking about it, this is the solution for you.
Not a Business User?