Invoice
A document sent by a business to a client that lists goods or services provided and the amount due for payment.
Learn more →Net 30
Payment terms that require the client to pay the invoice within 30 days of the invoice date.
Learn more →Net 15
Payment terms requiring the client to pay the invoice within 15 days of the invoice date.
Learn more →Net 60
Payment terms allowing the client 60 days from the invoice date to make payment.
Learn more →Proforma Invoice
A preliminary invoice sent before work begins, outlining the expected costs and payment terms.
Learn more →Accounts Receivable
Money owed to your business by clients for work completed but not yet paid.
Learn more →Accounts Payable
Money your business owes to vendors and suppliers for goods or services received but not yet paid for.
Learn more →Purchase Order
A formal document issued by a client authorizing and committing to purchase specific goods or services at agreed prices.
Learn more →Retainer
An upfront payment that secures ongoing services or reserves future availability with a service provider.
Learn more →Scope Creep
When a project expands beyond the original agreement without adjusting timeline or budget accordingly.
Learn more →Statement of Work
A detailed document outlining project deliverables, timelines, milestones, and responsibilities for both client and service provider.
Learn more →Estimate vs Quote
An estimate is an approximate cost projection, while a quote is a fixed price commitment for specific work.
Learn more →Gross vs Net
Gross refers to total amounts before deductions; net refers to amounts after deductions like taxes, fees, or expenses.
Learn more →Profit Margin
The percentage of revenue remaining after all business expenses are deducted from gross sales.
Learn more →Cash Flow
The movement of money in and out of your business over time, measuring when you receive payments versus when you pay expenses.
Learn more →Accrual Accounting
An accounting method that records income when earned and expenses when incurred, regardless of when cash actually changes hands.
Learn more →1099 Form
A tax document that businesses send to freelancers and contractors reporting payments made during the tax year.
Learn more →W-9 Form
A tax form that freelancers and contractors complete to provide their taxpayer information to clients for 1099 reporting.
Learn more →Chart of Accounts
An organized list of all financial accounts used to categorize business transactions for accounting and tax purposes.
Learn more →Frequently Asked Questions
What business terms should every freelancer know?
Key terms include invoice, net 30, accounts receivable, scope creep, and profit margin. These concepts affect daily business operations and financial success.
How do payment terms like Net 30 affect my business?
Payment terms determine cash flow timing. Net 30 means waiting a month for payment, while 'due on receipt' improves cash flow by requesting immediate payment.
What's the difference between gross and net income?
Gross income is total earnings before deductions. Net income is what remains after taxes, business expenses, and fees — your actual take-home amount.
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Start creating professional invoices with proper payment terms and business practices.