Back Charge
 |
Definition of 'Back Charge'A billing made to collect an expense incurred in a previous billing period. A back charge may be an adjustment due to an error, or it may be to collect an expense that was not billable until a later period due to timing issues. |
 |
Investopedia explains 'Back Charge'When possible it is best to avoid having to back charge for products or services. Because back charges may be unexpected by customers and can be confused with billing errors, they often take longer to collect. In general, the more promptly a company can bill a customer, the higher the probability of collecting the amount billed in a timely manner. |
Related Definitions
Articles Of Interest
-
Watch Out For Changes In Credit Card Agreements
If a credit card company changes its terms, you could pay a steep price. Find out how to stay informed. -
How To Dispute A Credit Card Charge
Follow these steps if you've been ripped off or spot an error on your bill. -
The Ins And Outs Of Bank Fees
These service charges could nickel and dime you right out of your nest egg. -
How To Break Up With Your Bank
Whether you're moving or have just found a better no-fee plan, find out how to switch banks with ease. -
The History Of Consumer Credit Rights
The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Get A Career In Showbiz Accounting
An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting. -
What Management Accountants Do
If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you. -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...
Free Annual Reports
