Purpose & Benefit: Understandably, no one wants to go unpaid without repercussions of delayed payments for services. In this case, TimeSolv has set up an easy method of allowing users to enable an interest percentage rate to encourage their clients to pay on time.
If clients already exist in TimeSolv, then first change the firm level settings to apply interest to all future clients, and also change the interest settings on each existing client at the client level.
Enable Interest at Client Level
Note: this would be for companies that charge interest for all of your clients.
TimeSolv uses compound interest, as opposed to simple interest. Compound interest is based on the principal amount and the interest that accumulates on it in every period. In short, your clients will be charged interest on top of interest.
- Select Settings under Clients tab.
- Click on the Invoice Settings tab.
- Make sure the Apply Interest? checkbox is enabled.
- Specify an Interest Rate percentage.
Note: Interest Rate is based on an annual percentage rate. As an example, if you were to charge a 5% annual interest, you would enter 5 in this field. Or, if you wanted to charge 1.5% monthly interest, you would type in 18 (because 1.5 * 12 months of the year = 18).
- Specify a Grace Period (days). This is the amount of provisional time you will allow the client to make a payment beyond the due date before you begin to charge interest.
- Set Payment Terms from either Upon Receipt or a Net amount.
Note: interest will not start accruing until the grace period plus specified payment terms days have run their course.
- The Payment Terms Text will automatically be populated to whatever Payment Terms you selected. But you can clear this field out and write whatever you wish. This text box is the only place for you to notify your client what the payment terms are, so if you wish you can write ‘Please pay immediately’ despite having a payment term set up in your back office.
- Click Save.