Accounting & Tax
Invoicing Terms Cheat Sheet
Invoicing shorthand trips up many small business owners. This guide breaks down the most common payment terms in plain English, plus a calculator that converts your invoice date and terms into an exact due date.
NET 30
Payment due in 30 days
Client must pay within 30 calendar days of the invoice date. Most common term for B2B services.
NET 60 / NET 90
Extended payment windows
Common with larger enterprise clients or government contracts. Gives buyer more time but hurts your cash flow.
2/10 NET 30
Early-pay discount
Client gets a 2% discount if they pay within 10 days; otherwise full payment is due at 30 days. Incentivizes faster payment.
Due on Receipt
Pay immediately
Payment expected when the invoice arrives. Common for freelancers, retail, or high-risk clients. Also called "PIA" (Payment In Advance).
EOM
End of Month
Payment due at the end of the month in which the invoice was issued. Simplifies bookkeeping for recurring billing.
COD
Cash on Delivery
Payment collected when goods or services are delivered. Eliminates credit risk entirely but requires payment infrastructure at delivery.