If you’re looking to send an invoice but find yourself confused about the differences between the invoice date and the due date, you’re in the right place. In this blog, we’ll explain what an invoice date is, what a due date means, and how they differ. We’ll also provide examples to clarify these terms and suggest free invoicing tools to help streamline your invoicing process, reducing your invoicing time by up to 90%. Let’s get started!
Table of Contents:
What is an Invoice Date?
The invoice date is the day the invoice is created and sent to the client. It’s usually found at the top of the invoice, often near the invoice number, and serves as a timestamp for the transaction. An invoice date helps you and your client track when the service or product was billed. This date is also important for tax purposes. When it comes to filing taxes, the invoice date determines the fiscal period in which the income should be reported.
For example, Let’s say you’re a freelance graphic designer working on a project for a client. The project is split into three phases: initial concept, revisions, and final delivery. You agree with the client that they’ll pay you after completing each phase. Say you’ve just finished the initial concept phase on August 1st. You create and send an invoice to the client on that same day. The invoice date here is August 1st, which tells the client, “This is the day I’m officially billing you for the work completed so far.” It also marks the beginning of the payment period—if you’ve agreed on a Net 30 payment term, the client knows they have until August 31st to pay this invoice.
What is a Due Date?
The due date on an invoice is the deadline by which the payment must be made. This explains the client clearly saying,” This is when your payment is expected.” Unlike the invoice date set by the freelancer or service provider when the invoice is created, the due date is determined by the payment terms agreed upon between you and the client. These terms could be anything from immediate payment upon receipt to a specific number of days after the invoice date, like Net 30 or Net 45. Say, if you have a Net 30 agreement and the invoice date is August 1st, the due date would be August 31st.
When setting a due date, the most common practice is to use standard payment terms like Net 30, Net 45, or even Net 60, depending on the nature of the work and the agreement with the client. “Net 30” means the client has 30 days from the invoice date to pay. If your invoice is dated August 1st, a Net 30 term would mean the payment is due by August 31st. Similarly, Net 45 would push the due date to September 15th. These terms are industry norms and can vary based on the relationship with the client or the specific business context.
Invoice date Vs Due date – Key Differences:
| Invoice Date | Due Date | |
| Definition | The date when the invoice is created and sent to the client. It marks the start of the billing cycle. | The deadline by which payment must be made. It is set based on the agreed payment terms (e.g., Net 30, Net 45). |
| Purpose | Sets the official start of the payment period. It is crucial for accounting and tax purposes, and helps track when the service or product was billed. | Refers to when the payment is expected. It helps both you and the client manage cash flow and ensure timely payments. |
| How It Impacts Billing | Determines when the billing cycle begins and can influence when revenue is recorded. | Affects when payment is received, directly impacting cash flow and financial planning. |
| How It Impacts Payment | Sets the timeline for when payment terms begin (e.g., Net 30 starts counting from this date). | Serves as a deadline for payment, helping avoid late fees and maintaining good client relationships. |
Pro Tip: Send Invoices for Free Using Invoice Tools
Now that you understand the difference between invoice dates and due dates let’s go through some tools that can make invoicing much easier. Traditional invoicing methods can be slow, tedious, and prone to mistakes, but with invoicing tools like CheckYa, you can send invoices 90% faster and get paid three times quicker. Moreover, you can send these invoices for free without inputting your credit card information and without upfront costs. Let’s look at the key features of CheckYa.
Automate Your Invoice Dates and Due Dates
One of the best things about CheckYa is how it handles dates. You don’t have to worry about setting them manually—CheckYa automatically picks the invoice date and due date based on when you send the invoice. This way, there’s no chance of messing up the dates. It’s one less thing to think about, letting you focus on your work.
Quick and Easy Invoicing with Pre-Made Templates
CheckYa offers a pre-made template that include all the necessary details for an invoice. All you need to do is fill in your specific information, like what service you provided and the amount you charge. With just a few clicks, your invoice will be ready to send.
Stay on Top of Payments with Automated Reminders
CheckYa automatically sends out reminders two days before the due date. This way, your clients get a heads-up without you having to chase them down. It’s a simple, stress-free way to ensure you get paid on time.
Invoice in 135+ Currencies and Choose How You Bill
Whether you have domestic clients or international clients, CheckYa lets you invoice in over 135 currencies. Plus, you can choose how you want to bill—whether it’s by the hour for your time or by quantity. This ensures that you can create each invoice to match the specific needs of each job and client.
Multiple Payment Options for Easier Transactions
One key to getting paid faster is making it easy for your clients to pay. CheckYa offers a variety of payment options, such as Google Pay, Apple Pay, credit cards, debit cards, ACH, and PayPal. Your clients can choose the method that’s most convenient for them, which means you’ll likely see that money in your account sooner.
Pass Processing Fees to Clients
Payment processing fees can eat into your income, but with CheckYa, you can pass between 50-100% of those fees onto your clients. This means you keep more of your earnings without covering those extra costs out of pocket. It’s a smart way to ensure you’re not losing money on each transaction.
Keep Track of Everything with a User-Friendly Dashboard
Finally, CheckYa gives you a powerful dashboard to easily track which invoices have been paid, which are still outstanding, and which are overdue. At a glance, you can see exactly where you stand financially, which is incredibly helpful when you’re dealing with multiple clients and projects.
Conclusion:
Now that you understand the difference between an invoice date and a due date and how they impact your invoicing, Use free tools like CheckYa to send out your invoices quickly and get paid faster. It’s easy, efficient, and a great way to keep your invoices on track.
