{"id":27715,"date":"2025-02-05T09:00:00","date_gmt":"2025-02-05T14:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=27715"},"modified":"2025-04-24T10:54:22","modified_gmt":"2025-04-24T14:54:22","slug":"invoice-payment-terms-definition-and-tips","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/invoice-payment-terms-definition-and-tips\/","title":{"rendered":"Invoice payment terms: How to choose the best terms for your business"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tInvoice payment terms: How to choose the best terms for your business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-02-05T09:00:00-05:00\">February 5, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Invoice payment terms: How to choose the best terms for your business\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/invoice-payment-terms-definition-and-tips\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/charlottepenny\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/03\/charlotte-penny.jpg\" class=\"entry-author__image\" alt=\"Headshot of Charlotte Penny\" \/>\t\t\t\t<span class=\"entry-author__name\">Charlotte Penny<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Invoices contain various details, such as an itemized list of the products and services provided, the total amount due, contact details, and invoice payment terms.<\/p>\n\n\n\n<p>The first three are self-explanatory, but what are payment terms on an invoice?&nbsp;Read on to find out and see how you can get them right for your business.<\/p>\n\n\n\n<p>Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"#what\">What are invoice payment terms?<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#invoice\">Invoice payment terms examples<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#payment\">12 invoice payment terms every business should know<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#how\">How to use invoice payment terms<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#write\">How to write payment terms in an invoice<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#when\">When are invoice payment terms created and updated?<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#choose\">How to choose the best invoice payment terms<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"#manage\">Manage your invoice payment terms effectively with automated accounting software<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\">Download your free invoice templates<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What are invoice payment terms?<\/h2>\n\n\n\n<p>Invoice payment terms outline how and when customers should pay a business from which they\u2019ve purchased goods or services. <\/p>\n\n\n\n<p>They\u2019re a key feature on your business-to-business (B2B) invoices, specifying details like the payment due date, early payment discounts, accepted payment methods, taxes, and penalties for late payments.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-do-invoice-payment-terms-work\">How do invoice payment terms work?<\/h3>\n\n\n\n<p>Once you\u2019ve negotiated and agreed the payment terms with the buyer, you create an invoice with the payment term details. <\/p>\n\n\n\n<p>The invoice is then sent to your customer, who is legally obliged to stick with the terms of the contract.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-are-invoice-payment-terms-important\">Why are invoice payment terms important?<\/h3>\n\n\n\n<p>Clearly defining the payment terms and conditions for your invoice settlements is essential for B2B transactions.<\/p>\n\n\n\n<p> This is because they\u2019re more complex and need more flexibility than most consumer transactions, which are usually based on immediate, cash-in-advance payment terms.<\/p>\n\n\n\n<p>Specifically, establishing clear payment terms is important because it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helps B2B buyers and sellers <strong><a href=\"https:\/\/www.sage.com\/en-us\/blog\/how-do-you-manage-cash-flow-and-collections-in-volatile-times\/\">manage their cash flow <\/a><\/strong>more effectively.<\/li>\n\n\n\n<li>Minimizes the risk of misunderstandings, confusion, and disputes over payment due dates, methods, and late fees, reducing late payments.<\/li>\n\n\n\n<li>Increases trust and strengthens business relationships, increasing retention and loyalty.<\/li>\n\n\n\n<li>Encourages timely and accurate payments.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"invoice\">Invoice payment terms examples<\/h2>\n\n\n\n<p>Before we go into detail about the different payment terms you might offer your customers, here are some examples of types of payment information that should be included on your invoices.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Payment due date:<\/strong> this specifies the date your customer must pay the total amount.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Taxes and additional fees:<\/strong> if your customer is liable to pay any taxes and fees, these should be included clearly on the invoice to avoid misunderstandings.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Payment terms: <\/strong>this section should detail your exact payment term. For example, whether the payment should be paid in advance, is due on receipt, paid in installments, or paid on a specific date as part of a net payment term.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Early payment discount: <\/strong>an early payment discount may be offered to customers on net payment terms, such as Net 30 or Net 60.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Late payment penalties:<\/strong> late payment penalties might be applied if your customer misses the payment deadline. These need to be expressed transparently on the invoice.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accepted payment methods: <\/strong>specify which types of payment methods you accept, which could include bank transfer, credit card, check, and wire transfer.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Many businesses use smart billing and invoicing software to generate invoice terms and automate calculations.<\/p>\n\n\n\n<p>This can streamline your workflows and help you make sure all the important details are included on your invoices, cutting down on errors, late payments, and other issues.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"payment\">12 invoice payment terms every business should know<\/h2>\n\n\n\n<p>You\u2019ll see lots of different types of payment terms on invoices, but what do these key terms mean, and how are they used in invoicing?<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Net 7, 15, 30, 60, and 90: <\/strong>these common payment terms specify the number of days a customer has to make the full payment from the invoice date, including weekends and bank holidays. So, for a Net 15 payment term, the client has 15 calendar days to settle the full balance, and <a href=\"https:\/\/www.sage.com\/en-us\/blog\/net-30-payment-terms\/\">Net 30<\/a> means the client must pay within 30 days, including weekends and public holidays. They allow for a degree of flexibility, which can benefit business relationships.<\/li>\n\n\n\n<li><strong>2\/10 Net 30:<\/strong> this payment term applies an early payment discount of 2% if your customer pays their invoice within 10 days. It\u2019s a common payment term used to incentivize early payments. It can be customized depending on your company\u2019s needs.&nbsp;<\/li>\n\n\n\n<li><strong>Payment in advance:<\/strong> this payment term asks that the full balance is paid upfront, before any goods or services are received. It\u2019s normally used for service-based transactions, such as freelancing, consulting, and contracting.<\/li>\n\n\n\n<li><strong>Cash in advance: <\/strong>similar to payment in advance, cash in advance asks for payment upfront before the product is shipped. The term is typically used by product-based companies, such as wholesalers or manufacturers.<\/li>\n\n\n\n<li><strong>Cash on delivery:<\/strong> this term stipulates that the payment for your goods or services must be made at the time of delivery. It allows your buyer to quality check their purchase, and can help build trust.&nbsp;<\/li>\n\n\n\n<li><strong>End of month (EOM):<\/strong> in an EOM payment term, the full balance is due at the end of the calendar month that the invoice is dated. For example, if an invoice was dated July 10, the payment must be made on July 31. It\u2019s generally used in long-term contracts when companies send recurring invoices.<\/li>\n\n\n\n<li><strong>50% upfront:<\/strong> this means that the customer has to pay 50% of the total cost upfront and 50% after the product or service has been received. It\u2019s commonly used for long-term projects or high-value contracts.<\/li>\n\n\n\n<li><strong>X MFI:<\/strong> MFI stands for \u201cmonth following invoice\u201d. Here, the due date is on a specific day of the month following the invoice date. So, 15 MFI would mean that if your invoice is issued anytime in July, the payment needs to be made by August 15.<\/li>\n\n\n\n<li><strong>Cash next delivery (CND):<\/strong> this is a payment term used for recurring deliveries, where full payment for the current delivery is expected before the next scheduled delivery.<\/li>\n\n\n\n<li><strong>Due upon receipt:<\/strong> due upon receipt indicates that the buyer must pay the full balance of the invoice as soon they receive it.&nbsp;<\/li>\n\n\n\n<li><strong>Cash with order:<\/strong> this is the same as cash in advance, where the buyer pays for the goods or services before they\u2019re delivered.<\/li>\n\n\n\n<li><strong>Stage payments: <\/strong>also known as installments, stage payments divide the total amount that needs to be paid into smaller sums paid by the customer at agreed intervals. It\u2019s a popular payment term for large-scale, long-term projects.&nbsp;<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\">How to use invoice payment terms<\/h2>\n\n\n\n<p>You\u2019ll need to do a bit of strategic analysis when figuring out which invoice payment terms to use, to make sure they benefit your business.<\/p>\n\n\n\n<p>For example, you\u2019ll want to think about how your payment terms align with your cash flow needs. <\/p>\n\n\n\n<p>If you offer flexible payment terms, such as Net 30 or stage payments, make sure you have enough cash reserves to cover your expenses and financial obligations before the payment due date.&nbsp;<\/p>\n\n\n\n<p>Also, consider how the payment terms you offer will affect your customers. <\/p>\n\n\n\n<p>Smaller businesses might not be able to pay upfront, while larger businesses may need more time to process payments in alignment with complex sales cycles. <\/p>\n\n\n\n<p>So, using immediate payment terms could strain relationships, increase late payments, and cause you to lose customers.<\/p>\n\n\n\n<p>Whatever option you decide to go with, it\u2019s important that the payment terms and conditions are expressed clearly in your contracts and invoices. <\/p>\n\n\n\n<p>Make sure to specify the due date, early payment discounts, late fees, and any additional potential costs.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"write\">How to write payment terms in an invoice<\/h2>\n\n\n\n<p>When <a href=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-write-an-invoice\/\">writing an invoice<\/a>, you should make sure your payment terms are outlined clearly and transparently in your invoice to avoid confusion. Include the due date, late fees, and any early discount fees, if applicable.<\/p>\n\n\n\n<p>If you use acronyms and abbreviations, these should be spelled out and explained. So, you might write a Net 30 payment term into a contract like this:<\/p>\n\n\n\n<p><em>Term: 2\/10 Net 30. Payment is due 30<\/em><em>\u202f<\/em><em>days from<\/em><em>\u202f<\/em><em>the invoice date. If you pay within 10 days, you\u2019ll receive a discount of 2%; otherwise, the full amount is owed if you pay within 30 days. If payment is made after 30 days, you\u2019ll be subject to late fees of [amount].&nbsp;<\/em><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\">Download your free invoice templates<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when\">When are invoice payment terms created and updated?<\/h2>\n\n\n\n<p>Your invoice payment terms should be created at the point where your customer is ready to make a purchase. <\/p>\n\n\n\n<p>They should be written into the contract and mutually agreed before they\u2019re finalized and added to the final invoice.&nbsp;<\/p>\n\n\n\n<p>You might also need to update an invoice with payment terms when circumstances change. <\/p>\n\n\n\n<p>For example, if your customer becomes a long-term client, you might offer them increased flexibility and better early payment discounts. <\/p>\n\n\n\n<p>Or, if there\u2019s a shift in the economy, industry, or company policies, you might update payment terms to reflect this.<\/p>\n\n\n\n<p>Using accounts receivable and <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/accounts-payable\/\">accounts payable software<\/a> can help you create invoices and keep track of changes.<\/p>\n\n\n\n<p>So, whether you want to create a customer invoice, update the payment terms on an existing invoice, or manage invoices sent by suppliers and vendors, you can do it all inside one streamlined platform.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"choose\">How to choose the best invoice payment terms<\/h2>\n\n\n\n<p>With so many invoice payment terms available, how do you know which ones are right for your business?&nbsp;<\/p>\n\n\n\n<p>Essentially, it comes down to three factors:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your cash flow needs<\/li>\n\n\n\n<li>your industry&#8217;s payment standards<\/li>\n\n\n\n<li>customers&#8217; reliability<\/li>\n<\/ul>\n\n\n\n<p>If you have a customer base of reliable, trustworthy clients and the cash reserves to cover expenses, then flexible payment terms are an option. <\/p>\n\n\n\n<p>Industry standards play a role, too, as flexible payments are common in many industries.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-common-challenges-with-invoice-payment-terms\">Common challenges with invoice payment terms<\/h3>\n\n\n\n<p>Invoice payment terms aren\u2019t without their challenges, regardless of your chosen type. These are the main issues that you might run into.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Misunderstandings<\/strong>: if details like due dates and late fees are unclear, it can lead to confusion and disputes that slow down the payment process.&nbsp;<\/li>\n\n\n\n<li><strong>Late and missed payments:<\/strong> flexible terms, like end-of-month and net payment terms, come with an increased risk of late payments and non-payments, which could potentially cause you cash flow and revenue problems.<\/li>\n\n\n\n<li><strong>Lost customers: <\/strong>while flexible payment terms can put your business at more risk, demanding that customers pay you upfront can put them off doing business with you.<\/li>\n\n\n\n<li><strong>Managing and tracking invoices:<\/strong> when you have many customers and\/or different payment terms for different clients, generating invoices on time and keeping track of them all can be a struggle. This can lead to delayed payments and cash flow issues.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-negotiate-payment-terms-5-best-practices\">How to negotiate payment terms: 5 best practices<\/h3>\n\n\n\n<p>Finding payment terms that meet the needs of both business parties may take some negotiation. Here are 5 best practices to help you achieve a good outcome.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Aim to understand your customer\u2019s needs:<\/strong> the more you understand your customers\u2019 cash flow, payment capabilities, and financial stability, the easier it will be to tailor your payment terms to suit their preferences, while benefiting your business.&nbsp;<\/li>\n\n\n\n<li><strong>Exercise flexibility where possible:<\/strong> offering flexible payment terms goes a long way in retaining customers, ultimately helping you foster positive long-term relationships.<\/li>\n\n\n\n<li><strong>Be prepared to compromise: <\/strong>to find a mutually beneficial solution, you may need to compromise. For example, if you offer a payment term of 15 days but your customer wants 45 days, you might compromise and set an invoice term of 30 days.<\/li>\n\n\n\n<li><strong>Incentivize early payments:<\/strong> one of the best ways to negotiate payment terms is to throw in a small early payment discount. Early payment discounts motivate customers to make payments before the due date, improving your cash flow.&nbsp;<\/li>\n\n\n\n<li><strong>Add late fees: <\/strong>on the flip side, late fees and penalties can encourage your customers to pay on time, cutting down the risk of late payments. It can also help you cover the cost of unexpected delays while offering the flexibility that your customers want.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"manage\">Manage your invoice payment terms effectively with automated accounting software<\/h2>\n\n\n\n<p>With automated invoicing software, you can quickly generate and send invoices, customize your payment terms, and automate calculations, such as due dates, early payment discounts, and late fees. <\/p>\n\n\n\n<p>This will eliminate manual data entry errors, streamline workflows, and help make sure you get paid the right amount by the agreed due date.&nbsp;<\/p>\n\n\n\n<p>You\u2019ll be able to create, send, and track invoices in real-time from desktop and mobile devices. Get complete visibility on payment statuses, even when you\u2019re on the go. <\/p>\n\n\n\n<p>Customize payment terms to suit your business needs and set up automatic reminders to minimize late payments, keeping your cash flow healthy.<\/p>\n\n\n\n<p>Ready to use end-to-end automation and in-built integrations to manage invoice payment terms more effectively? Check out our online <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/invoicing\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>invoicing software<\/strong><\/a>.&nbsp;<\/p>\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Free Invoice Templates<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Free invoice templates, designed for you in mind.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-9571ec4e-0c5d-41b2-b0c2-e077f14fd64b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t24,386 readers have downloaded these templates\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1400801126-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1400801126-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/automation\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAutomation\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash Flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/hub\/sage-accounting\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSage accounting solutions\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-29306 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-continuity tag-small-business business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-1215x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-12T10:24:32-04:00\">June 12, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-a-purchase-order\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat is a purchase order (PO) and how is it used?\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf your business buys from suppliers, purchase orders are one of the most important controls you have. Learn what a purchase order includes, how it works, and when to use each type.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30699 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-automation tag-digital-transformation tag-erp tag-inventory-management tag-supply-chain-management business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-order-management\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg\" class=\"card-post__image\" alt=\"Lady carrying cartons\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1355438061-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-11T08:52:26-04:00\">June 11, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is order management?\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-29310 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-technology-innovation tag-artificial-intelligence tag-automation tag-boss-your-business tag-cash-flow tag-cloud-financial-management tag-sage-accounting business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/order-to-cash-process-otc-o2c\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1190223207-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-10T12:23:35-04:00\">June 10, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is the Order to Cash process?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-28775 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-business-strategy tag-cash-flow tag-growing-a-business tag-small-business business_type-small-business business_type-growing-business industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/peer-to-peer-fundraising-best-practices\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1414263386-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T05:54:37-04:00\">June 2, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">15 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tPeer-to-peer fundraising guide: Best practices for success\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-29487 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-boss-your-business tag-business-continuity tag-business-intelligence tag-cash-flow tag-sage-accounting tag-small-business tag-starting-a-business business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/accounts-payable-vs-notes-payable\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0474-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-22T12:03:36-04:00\">May 22, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNotes payable vs accounts payable: Differences and examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Invoice payment terms are the conditions agreed upon for payment between business and client. Explore definitions and concepts to simplify your transactions.<\/p>\n","protected":false},"author":1660,"featured_media":25688,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[43],"tags":[110,334,299,168],"business_type":[40,41],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[209,233],"coauthors":[616],"class_list":["post-27715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-automation","tag-cash-flow","tag-sage-accounting","business_type-small-business","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Charlotte Penny","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original.jpeg","imagine_tags":{"209":"Accounting","233":"Medium Businesses"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1660"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=27715"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/27715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/25688"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=27715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=27715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=27715"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=27715"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=27715"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=27715"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=27715"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=27715"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=27715"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=27715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}