Comments on: When should your customer pay your invoice? http://thecashflowblog.com/when-should-your-customer-pay-your-invoice/ Practical ideas to maximize the flow of money in and out of your business Sat, 28 Nov 2009 21:00:32 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jim Logan http://thecashflowblog.com/when-should-your-customer-pay-your-invoice/comment-page-1/#comment-278 Jim Logan Tue, 19 May 2009 16:04:04 +0000 http://thecashflowblog.com/?p=279#comment-278 Hi Jason! As a general rule, it's not a good idea - certainly not the best. If Day 0 is the first of the month, that means you're asking for payment on a particulr day of the month, which is monthly billing. Monthly billing is fine - that's how mortgages, car payment, and most every household bill works. But it's not NET terms. NET terms are when payment is due x number of days after an event - delivery, report, update, start date, etc. The point of this post regarding Day 0 is to make sure your customer has the same understanding as you do on which day is Day 0. Doing so means you both know when Day x arrives and payment is due. Hi Jason! As a general rule, it’s not a good idea – certainly not the best. If Day 0 is the first of the month, that means you’re asking for payment on a particulr day of the month, which is monthly billing.

Monthly billing is fine – that’s how mortgages, car payment, and most every household bill works. But it’s not NET terms.

NET terms are when payment is due x number of days after an event – delivery, report, update, start date, etc.

The point of this post regarding Day 0 is to make sure your customer has the same understanding as you do on which day is Day 0. Doing so means you both know when Day x arrives and payment is due.

]]> By: Jason http://thecashflowblog.com/when-should-your-customer-pay-your-invoice/comment-page-1/#comment-277 Jason Tue, 19 May 2009 13:47:39 +0000 http://thecashflowblog.com/?p=279#comment-277 Is using Net terms based on End of Month (EOM) for day 0 a good or bad idea? It seems simpler for our accounting and eliminates questions about what is really Day 0 for customers. Is using Net terms based on End of Month (EOM) for day 0 a good or bad idea? It seems simpler for our accounting and eliminates questions about what is really Day 0 for customers.

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