Looking for how to add late fees to your unpaid invoices in Xero? 

Late Chaser is an app syncs into Xero that will enable you to add late fees to your customers when their invoices go overdue. 


Watch the quick start video on how to add late fees to your unpaid Xero invoices: 

Diagram of how to add late fees to your unpaid Xero invoices (with Late Chaser):

How to add late fees to overdue invoices in Xero


Step 1: Sign in with Xero

> Select the sign up button on latechaser.com

> Select which Xero organisation you would like to sign in with, and to connect to Late Chaser.

> You'll now be logged into Late Chaser and on the dashboard.


Step 2: Setup your interest penalties

> Move from the DASHBOARD > over to the SETTINGS tab.

Late Chaser will take the overdue amount of your invoice, and generate a penalty invoice (the late fee) in Xero for your customer.


Step 3: Set the status of your penalty invoices

Late Chaser will create penalty invoices for your late fees, choose the invoice status of how they appear in your Xero account, either as Approved or as a Draft.

Step 4: Choose the Xero chart of account for your penalty revenue

Select which chart of account you would like to code your late fee income into. Xero will typically have a default option for your pick from (Interest Income) however feel free to set your own, or discuss this with your accounting professional.

Step 5: Set your grace period / Select how many days after overdue to send the penalty

Late Chaser will let you apply a grace period before sending penalties on overdue invoices.


Example: Select 2 days and Late Chaser will wait 48 hours before sending the penalty invoice.


Note: If you don't want to apply a grace period, set this to 0.


Step 6: Set your penalty amount

Set the dollar amount of the penalty that you want charge to your customer for overdue invoices.