One silver lining coming from the COVID-19 pandemic, in the United States and abroad, is the change in work culture that is prevalent among many young professionals. For example, people have started to realize that going to the office five times a week is not essential to increase productivity, as working from home has become synonymous with corporate culture.
Likewise, those who are classed as millennials and part of GenZ have realized they can have more fulfilling careers outside of the traditional corporate sphere, with many college graduates now more likely to start their own company.
The past two years have also seen a boom in the gig economy, with many people preferring to freelance with multiple clients rather than sticking to one particular job.
With many people running their own businesses, invoicing has taken on greater importance, especially given the tax breaks associated with owning and opening a small business or sole proprietorship.
What is an invoice?
Simply put, an invoice is a document provided by the seller to the buyer to collect payment for goods or services provided.
How long can it take to pay the bill?
Usually, the bill for a one-time transaction clears immediately after a service is performed, however, payment cycles for recurring transactions can occur over 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 the buyer regarding the time frame within which a payment must be made.
If a buyer delays payment for the good or service beyond what was previously agreed, the 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 late payment provided this has been agreed by both parties prior to the transaction.