How can service businesses automatically add late fees or interest to overdue invoices?

I'm not sure of a way to do this automatically - does anyone else have any ideas??  Hopefully you can collect on those outstanding accounts receivables soon!!!

I too would like a way to automate this, but was told by support there is nothing like that available at this time, manual is the only option. Adding a CC to jobber to collect payment faster was the only solution given. 

I'm a new business owner and I'm currently using yelp as my help but I get leads and nearby jobs but nobody answers the phone even when I follow up with the project.  What's some tips to start receiving winning the customers 🤔 

Hello! At this time there's no way to automate adding interest or late fees to a past due invoices, those would need to be added manually as an additional line items. But it sounds like this function would help a lot of businesses with any outstanding client payments!

If anyone is open to sharing approximately what portion of their invoice payments are received past the due date, that would be really great information to share with our Product team.

I also wish this was a feature. We've had to add late fees as a line item manually.

A&A Trades and Acquisitions, LLC has identified extended invoice payment timelines—currently averaging approximately 50 days—as a material constraint on cash flow and operational efficiency. Given the nature and scope of services provided, the business routinely advances labor, payroll, and project-related expenses well in advance of receiving client payments. This effectively places the company in the position of self-financing its operations, which introduces avoidable financial strain and limits the ability to scale efficiently.

To address this, the company is implementing a formalized billing and collections framework designed to improve payment timelines, increase accountability, and offset the financial impact of delayed receivables. Central to this framework is the introduction of clearly defined payment terms across all client agreements and invoices. Standard terms will include a Net 15 or Net 30 structure, after which any outstanding balance becomes subject to automatic late fees and/or interest charges. These charges may include a fixed late fee, a monthly percentage-based finance charge (commonly 1.5%–2%), or a combination of both, applied consistently after a designated grace period.

To ensure accuracy, consistency, and administrative efficiency, A&A Trades and Acquisitions, LLC utilizes integrated financial systems such as QuickBooks and Jobber. These platforms enable the automation of late fee application, scheduled payment reminders, and real-time tracking of outstanding receivables. Automation reduces the need for manual follow-up, minimizes human error, and ensures that all clients are managed under the same standardized policies.

In addition to implementing late fees, the company is aligning its broader payment strategy with best practices designed to reduce Days Sales Outstanding (DSO). This includes encouraging or requiring clients to enroll in automatic payment methods, collecting deposits upfront for larger projects, and establishing clear consequences for continued late payment, such as work stoppage or revised payment terms on future engagements.

The purpose of these measures is not punitive, but corrective and protective. By introducing structured financial controls, the company ensures that the cost of delayed payments is not absorbed internally, but instead fairly allocated. This approach supports healthier cash flow, strengthens financial predictability, and enables reinvestment into workforce stability, equipment, and service quality.

Through the implementation of these policies, A&A Trades and Acquisitions, LLC reinforces its commitment to operating as a disciplined, growth-oriented business with strong financial governance, while maintaining transparency and professionalism in all client relationships.