# Automate payment reminder emails, late fees, and sales tax

## Enable automated reminder emails and automated late fees to save time with customer payment follow-up.

Click the **Invoice Settings** tab.

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You must click **Save** to apply any changes within this section.

### Reminders

- **Send reminders:** When turned on, the system will send a reminder email to your customer the day before an unpaid invoice is due.
- **Send past due reminders:** When turned on, the system will send reminder emails to your customer when the unpaid invoice is past the due date by 3 days, 7 days, and 14 days.  Past due reminder emails stop once your customer pays the invoice.

**Note:** both settings are turned **on** by default.

> _You can also send a reminder to any customer on demand from the Past Due tile on your dashboard. This is separate from the automated schedule above, and both can be used together. See [Send overdue invoice reminders](https://help.autobooks.co/knowledge/send-overdue-invoice-reminders?hsLang=en) to learn how._

### Late Fees

Late Fees are one-time fees that are sent as a separate invoice. The late fee invoice will reference the original past due invoice so both you and your customer have this for record-keeping purposes.

Once toggled on, the following options are available to customize late fees:

- **Grace period** \- The number of days after an invoice due date that a customer can pay before considered late.
- **Percentage of invoice fee**  \- This will charge the late fee as a percentage of the amount owed on the original past due invoice.

- **% of invoice:** The percentage of the original invoice that will be charged as a late fee.
  - **Minimum late fee** \- This option will set a minimum amount to be charged. The late fee will be at least the minimum amount unless the percentage exceeds this value.

**For example:** a customer is past due for a $100 invoice. You have set a 3% fee with a $5.00 minimum. Since the percentage would only generate a $3.00 charge, the $5.00 minimum fee would be applied.

- **Fixed fee** \- This option charges your customer a standard late fee for any past due invoice.

### Sales Tax

You may set a standard sales tax percentage rate for your invoices. The rate may be edited per invoice you create, but this standard will appear as a sales tax default.

To enable a standard sales tax, check the **Enable sales tax** box. Enter the percentage you wish to set as the standard.