Late fees are charged when your bills aren’t paid by the due date. But if you’re like most small business owners, you have quite a bit of monthly bills to pay. In addition to your overhead costs, you might have credit lines with specific vendors and credit card bills. It can be a lot to manage at times. But you have to remember that the cost of late fees adds up eventually. It can take a huge chunk of your profits if you aren’t careful. The good news is, it’s fairly easy to avoid being charged late fees.
To avoid paying late fees, you simply have to pay your bills by the due date. So if you find yourself paying late fees on a regular basis, you should consider changing or streamlining your bookkeeping process. You could use cloud-based accounting software, like QuickBooks Online, to keep track of due dates and schedule recurring payments. If you want to make bill-paying simple, consider paying all of your bills at the same time each month. For example, if you pay everything owed for the month on the first, regardless of the actual due date, it ensures you aren’t making any late payments. It’s also a good idea to keep a master list of your expenses and their due dates. This way, you can refer to it throughout the month to ensure you haven’t accidentally missed a bill.
Once you have your finances organised and a good payment schedule set, the key to success is sticking to it. This way, you don’t have to worry about being charged unnecessary late fees.