On the other hand, companies can impose late payment fees to discourage late payments and manage cash flow. The implementation of late payment fees should be communicated clearly to clients and mentioned in the terms and conditions of the credit policy. If you do a lot of business on credit, you might want to account for your bad debts ahead of time using the allowance method.
You can connect with a licensed CPA or EA who can file your business tax returns. Set your business up for success with our free small business tax calculator.
