Define when clients should pay invoices and keep your cash flow healthy.
Payment terms define the agreed-upon conditions between you and your clients regarding when an invoice should be paid. Setting clear payment terms helps you manage cash flow, avoid confusion, and ensure both sides have the same expectations.
How to Create and Set a Payment Term
Step 1: Go to Settings in the left-hand menu and click on Payment Terms.
You’ll be directed to the Payment Terms page.
Step 2: Click the + New Payment Term button
Step 3: Fill out the Payment Term Information
- Name: Enter a descriptive name for the payment term (e.g., "Net 30" or "Due on Receipt").
- Term Days: Specify the number of days from the invoice date when payment is due (e.g., 30 days, 60 days).
Optional: If you’d like this payment term to automatically apply when creating new client profiles, check the box labeled Use as Default. You can always manually change the payment terms for specific clients later.
Step 4: Click Save once you’ve filled out the details.
A confirmation message will appear to let you know the payment term has been successfully created.
Click the checkmark icon next to a payment term to set it as the default across the system. This ensures it automatically applies to new invoices and client profiles unless you choose otherwise.