Understanding Invoice Due Dates: A Comprehensive Guide

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An invoice due date is the specific deadline by which a client must settle their payment. Clearly defining this date ensures timely payments and maintains healthy cash flow. Understanding the invoice due date meaning helps businesses set appropriate payment terms and avoid confusion. To set an invoice due date, determine the payment terms agreed upon with the client, such as Net 30 or Net 15, and calculate the due date accordingly. For example, if an invoice is issued on July 1 with Net 30 terms, the due date would be July 31. Clearly stating this date on the invoice helps clients know when payment is expected, reducing the likelihood of late payments.