QuickBooks Finance Charge: Company Preferences Part 1

Finance Charge

The Finance Charge preferences are a collection of options that have to do with the interest rates and charges that come with customers who are late on their payments. Because this is a company-wide setting, there are no options in the My Preferences tab, only the Company Preferences tab.

  • Annual Interest Rate
    • This is where you enter the interest rate for finance charges. QuickBooks uses a percentage format, so if enter 15.4 into this box, QuickBooks will read this as 15.4%
  • Minimum Charge
    • If you want QuickBooks to apply a flat finance charge to all overdue accounts, enter that number in this option.
  • Grace Period
    • This is simply how many days before a payment is considered late. Notice that the number is in days, so if you have a grace period that spans 2 months, you would need to enter 60 into this field.
  • Finance Charge Account
    • From this drop-down box, you can choose the account that you use to enter in money from charges.

      You can read here part 2 of this article.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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