BROWSE

Back Charge

What is '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.

Explaining '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.


Further Reading


Trends in park tourism: Economics, finance and management
www.tandfonline.com [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …

The economics of the private placement marketThe economics of the private placement market
heinonline.org [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …

A critical financial analysis of the Private Finance Initiative: selecting a financing method or allocating economic wealth?A critical financial analysis of the Private Finance Initiative: selecting a financing method or allocating economic wealth?
www.sciencedirect.com [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …

Conceptual issues and the Australian experience with income contingent charges for higher educationConceptual issues and the Australian experience with income contingent charges for higher education
academic.oup.com [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …

Off the cliff and back? Credit conditions and international trade during the global financial crisisOff the cliff and back? Credit conditions and international trade during the global financial crisis
www.sciencedirect.com [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …

reverse charge procedurereverse charge procedure
www.elgaronline.com [PDF]
… Most of the world's protected areas charge low entry and use fees that cover only a … to the apparently self-evident conclusion that: 'It must be accepted that user charges can usually … Costa Rica and Zimbabwe, resulting in vociferous objection and subsequent roll-back of some of …



Q&A About Back Charge


What does the term "promptly" mean in this context?

The term "promptly" means as soon as possible.

When is it considered ethically correct to inform the client of a back charge?

It is considered ethically correct to inform the client of a back charge when it has been incurred.

Why does the author mention "as soon as possible" in this context?

The author mentions "as soon as possible" because they want to make sure that clients are aware of any charges that have been made against their account.

How do you avoid having to make back charges?

It is best to avoid having to make back charges for products or services.

What is a back charge?

A back charge is considered ethically correct when the client knows about it as soon as possible.

Why are back charges often confused with billing errors?

Because they may be unexpected by customers and can be confused with billing errors, they often take longer to collect.

Who should be informed of a back charge?

The client should be informed of a back charge.

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