One silver lining to come from the COVID-19 pandemic, in the United States and abroad, is the shift in the work culture that is prevalent amongst many younger professionals. For example, people have started to realize that commuting to an office five times a week isn’t key to boosting productivity with work from home now synonymous with corporate culture.
Similarly, those who are classified as millennials and part of GenZ have realized that they can have more fulfilling careers outside the traditional corporate sphere with many college graduates now more likely to start their own ventures.
The past two years have also seen a boom in the gig economy with many individuals preferring to work freelance with several clients rather than be confined to a particular job.
With several individuals now helming their own ventures, invoicing has taken on a greater significance especially given the tax breaks associated with owning and opening a small business or sole proprietorship.
What is an invoice?
In simple terms, an invoice is a document provided by the seller to the buyer to collect payment for the goods or services provided.
How long can one take to pay the invoice?
Usually, the invoice for a one-time transaction is cleared immediately after a service is rendered, however, payment cycles for recurring transactions can occur on a 30, 60, or 90-day period.
What happens if a payment is delayed?
In most cases, there is an agreement between the seller and buyer regarding the time frame for when a payment needs to be cleared.
If a buyer delayed paying for the good or service beyond what was previously agreed upon, then a seller is entitled to charge a late fee.
Can a seller charge interest on late payments?
Yes, a seller can also charge interest on any payments that are delayed provided this has been agreed upon by both parties prior to the transaction.
