A deadline is a date by which something has to be done or paid or filed. Let’s look at some examples of deadlines.
The word deadline can refer to many different things.
When it comes to accounting, a deadline is the time by which you’re required to file taxes, submit reports or pay consumption tax or income tax to the tax authorities.
You should make sure to follow all the accounting deadlines that apply to your business. If you miss a deadline, you risk having to pay late fees or interest on the money you owe. If you don’t report things on time, you risk daily fines.
If you’re unsure about how to do your invoicing or when the deadlines are, you should speak to an accountant.
Due date for invoicing
When it comes to invoicing, a deadline is the time by which you have to pay an incoming invoice from your supplier, or the time by which a client has to pay an invoice you’ve sent them. The deadline, or the due date, is part of the payment terms that you set for your clients.
It can be difficult to choose the right payment terms. Usually businesses invoice with net 14 or net 30 days payment terms, meaning that the payment is due 14 or 30 days after the invoice is issued. But you can do as little as 7 and as much as 60 days, for example. Generally, it’s not a good idea to have too long a deadline as it will negatively affect your business’ liquidity.
Is there a deadline for invoicing a client?
Technically yes, but they’re usually very lenient; the deadline could be years in the future. However, you should check what applies in your country.
And remember, that the sooner you invoice your client, the sooner you can get paid.
See also: 7 tips to get paid fast