370 essential terms — from Tax and Accounting to Payments and Invoicing, organized by category with clear, plain-English definitions.
Accounts payable (AP) is the money your business owes vendors, suppliers, and contractors. Learn the AP workflow, how it differs from AR, and how freelancers manage it without stress.
Accounts payable aging is a report showing unpaid vendor invoices organized by how long they've been outstanding.
Accounts receivable aging is a report categorizing unpaid client invoices by how long they've been outstanding.
Accrual accounting records income and expenses when earned or incurred; cash basis records them when money actually changes hands.
What does 'active under contract' mean? Learn what active contractual status requires, how it affects your freelance obligations, and what rights and protections both parties have during an active engagement.
Adjusted Gross Income (AGI) is your gross income minus specific deductions, determining your taxable income and eligibility for tax benefits.
An amortization schedule is a table showing each periodic payment on a loan, breaking down principal and interest over time.
Annualized income is an estimate of your total earnings for a full year based on income received to date.
An audit is an official examination of your financial records by a tax authority or third party, verifying accuracy and compliance.
Bad debt expense is an accounts receivable that has become uncollectible, written off as a loss against income.
Bad debt is money owed to you that you'll never collect. Learn when to write it off, how it affects your taxes, and what steps freelancers should take before giving up on an unpaid invoice.
What is a balance sheet? A balance sheet shows what your business owns (assets), what it owes (liabilities), and what's left for the owner (equity) at a specific point in time. Learn the formula, structure, and how to read one.
A bank feed is an automated connection that imports your bank and credit card transactions directly into your accounting software.
Basis points (bps) are a unit of measure equal to 1/100th of a percentage point, commonly used to express interest rate changes and fee differences.
A bill and an invoice both request payment, but they're used in different contexts. Learn when to use each, how they relate to accounts payable and receivable, and what freelancers should always send.
Bookkeeping vs. accounting — what's the difference? Learn the distinct roles of bookkeepers and accountants, how they work together, and what each means for your freelance or small business financial management.
Bootstrap financing is building and funding a business using personal resources and revenue, without external investors or venture capital.
Brand identity is the collection of visual, verbal, and experiential elements that define how your freelance business looks and communicates.
Break-even analysis calculates the revenue level at which your total income equals total expenses, determining when you start making profit.
Bridge financing is a short-term loan that provides immediate capital to cover a temporary cash flow gap until longer-term funding arrives.
Budget vs. actual analysis compares your planned financial projections against real results to identify variances and control spending.
Capital expenditure (CapEx) is money invested in long-term business assets like equipment, furniture, or software with a useful life beyond one year.
Capital gains tax applies when you sell assets for more than you paid. Learn how capital gains work, current tax rates, and strategies freelancers and small business owners use to minimize their capital gains tax.
A cash flow statement reports the actual cash entering and leaving your business, separate from revenue and expenses on paper.
Cash flow is the money moving into and out of your freelance business. Learn how to track it, improve it, and avoid the most common cash flow mistakes independent contractors make.
What is cash on hand? Cash on hand is the money your business has available immediately — in your bank accounts and physical cash. Learn why cash on hand is different from profit, and how to manage it for business survival.
Change management in project-based work is the formal process of handling scope changes, preventing scope creep, and protecting profitability.
Closing entries are journal entries made at the end of an accounting period to reset temporary accounts and transfer profits to retained earnings.
Collateral is property or assets pledged to a lender as security for a loan, which they can seize if the borrower defaults.
A collections policy is a formal, documented system for pursuing unpaid invoices, from friendly reminders to final collection actions.
A convenience fee is a surcharge added for non-standard payment methods, distinct from credit card processing fees.
Cost allocation is the process of assigning shared indirect costs to specific projects, clients, or services to determine true profitability.
A credit card processing fee is the per-transaction charge imposed by payment processors and card networks when you accept credit or debit card payments.
A credit memo (credit note) is a document issued to a client that reduces or cancels an amount owed on a previously issued invoice.
Credit note vs invoice — what's the difference? Learn when each document is used, what information each contains, and how credit notes work in accounts payable and receivable workflows.
Cross-selling is offering existing clients additional services that complement what they're already buying from you.
Current ratio is a liquidity metric that compares current assets to current liabilities, indicating a business's ability to meet short-term obligations.
DSO measures the average number of days it takes to collect payment after a sale is made.
DSCR measures your business's ability to pay all debt obligations from operating income, used by lenders to evaluate loan eligibility.
Deferred revenue and accrued revenue are opposite accounting concepts. Learn what each means, how to identify them, and why confusing them leads to serious financial reporting errors.
Define invoice and understand its legal, accounting, and business meaning. Learn what qualifies as an invoice, its essential elements, and how it differs from other billing documents.
A digital wallet is an app or device that stores payment credentials for contactless payments, enabling faster transactions.
A direct cost is an expense that can be specifically and traceably attributed to a single project, client, or product.
A disbursement is a payment made from business funds, whether to vendors, employees, or the business owner as an owner draw.
A dividend is a distribution of a company's profits to its shareholders, typically in the form of cash or additional shares.
Due on Receipt means payment is expected immediately upon receiving an invoice — typically within 24–48 hours. Learn when to use this payment term, how to write it on an invoice, and how to handle pushback from clients.
Effective tax rate is the actual percentage of your income paid in taxes, calculated by dividing total tax by total income.
An EIN is a nine-digit federal tax identification number for your business, required for hiring employees and opening business bank accounts.
What is equity in accounting? Equity (owner's equity) is what remains after liabilities are subtracted from assets. Learn how equity works on the balance sheet, how it changes over time, and why it matters for freelancers and small business owners.
Escrow is a financial arrangement where a third party holds funds until specified conditions are fulfilled by both parties.
What is an estimate? An estimate is an approximation of the expected cost of a project before work begins. Learn how estimates differ from quotes and invoices, when to use them, and how to write professional estimates that win clients.
Estimated quarterly payments are tax installments self-employed individuals pay four times a year to cover income and self-employment tax.
Fair market value is the price an asset would fetch in an open market between a willing buyer and willing seller under no compulsion.
A fiscal year is a 12-month period used for accounting and tax purposes that doesn't necessarily align with the calendar year.
Fixed costs are business expenses that remain constant regardless of how much you work or earn — rent, insurance, subscriptions.
A fixed price contract is an agreement to deliver defined work for a predetermined price, regardless of the time it actually takes to complete.
What does FOB mean on an invoice? FOB (Free on Board) is a shipping term that determines when ownership and risk transfer from seller to buyer. Learn FOB Shipping Point vs FOB Destination, who pays freight, and how FOB affects your invoice.
The general ledger is the master set of accounts that records every financial transaction in your business.
The gig economy encompasses freelance, independent contract, and platform-based work. Learn how gig work affects your taxes, legal status, and financial planning as a gig worker.
What is the gross amount on an invoice? The gross amount is the total before deductions — the sum of all line items before discounts are subtracted. Learn how gross amount fits into invoice math.
Gross income is your total revenue before any deductions. Learn how gross income differs from net income, how it's taxed, and what it means for freelancer tax planning.
Gross margin is the percentage of revenue remaining after subtracting the direct costs of delivering your services.
Gross revenue is the total income from all sources before any deductions — your top-line number.
A guarantor is a person who agrees to repay a loan if the borrower defaults, using their personal assets as security.
Income tax is money you pay to the federal and state government on your earnings. Learn how income tax works for freelancers, what brackets apply, and how to plan for your tax obligations.
An independent contractor is a self-employed person who provides services to clients without being classified as an employee.
Indirect costs are business expenses that benefit multiple projects or clients and must be allocated rather than charged directly.
International payments involve transferring money across borders, with methods including wire transfers, SWIFT, PayPal, and multi-currency platforms.
What is invoice automation? Learn how automating invoice creation, sending, and tracking can save hours of admin work and dramatically improve your cash flow as a freelancer or small business.
The invoice date is the date an invoice is created and sent to a client. It starts the payment clock for all Net terms. Learn how to set the invoice date correctly and how it differs from the due date and service date.
What is a discount on an invoice? Learn the types of invoice discounts — early payment, volume, trade, and promotional — how to apply them correctly, and when offering a discount helps vs. hurts your cash flow.
An invoice due date is the specific calendar date by which a client must pay an invoice. Learn how due dates are calculated from payment terms, how to write them on invoices, and what to do when a due date passes without payment.
Invoice factoring definition and meaning. Learn how invoice factoring works, its pros and cons, costs, and whether it's right for your small business cash flow needs.
Invoice in Spanish: factura. Learn how to say invoice in Spanish, the key Spanish invoice terminology, and what US freelancers need to know when billing Spanish-speaking clients.
What is the meaning of invoice? Discover the full invoice meaning, how invoices work in business, and how to use them effectively in your freelance or small business.
What is an invoice number? Learn why invoice numbers are critical for business, the best formats to use, how to create a numbering system, and how to avoid common numbering mistakes.
What does invoice mean? An invoice is a commercial document requesting payment for goods or services provided. Learn what invoices are, their key components, types, and how to create professional invoices that get you paid faster.
What does invoiced mean? Understand the term 'invoiced' in business and accounting — when a transaction has been invoiced, how it affects your books, and what it means for cash flow.
A late payment fee is a charge added to an invoice when payment is not received by the agreed deadline. Learn the standard late fee rates, how to write a late fee clause, and how to enforce it without damaging client relationships.
A late payment penalty is a fee charged to clients who fail to pay invoices by the agreed-upon due date.
A lien is a legal claim or encumbrance on property that serves as security for a debt or obligation, often used to ensure payment.
Liquidity ratios measure a business's ability to meet short-term obligations using its most liquid assets.
An LLC (Limited Liability Company) is a business structure that separates your personal assets from your business liabilities. Learn how to form one, how it affects your taxes, and whether it's worth it for freelancers.
A loss leader is a product or service priced below cost to attract new clients, with the expectation of making profit on future work.
Net 14 means payment is due 14 days after the invoice date. Learn when to use Net 14, how it compares to Net 30, and see real invoice examples.
Net 15 means payment is due within 15 days of the invoice date. It offers a middle ground between Net 7's speed and Net 30's flexibility. Learn when Net 15 is the right choice and how to enforce it.
Net 30 means payment is due within 30 days of the invoice date, one of the most widely used payment terms in business invoicing.
Net 30 means payment is due within 30 days of the invoice date. Learn when to use Net 30, how it compares to Net 7 and Net 15, and strategies to get invoices paid faster on Net 30 terms.
Net 60 means payment is due within 60 days of the invoice date. Learn when Net 60 is appropriate, how to manage cash flow under 60-day terms, and strategies to negotiate shorter payment windows.
Net 7 means payment is due within 7 days of the invoice date. It is the fastest standard payment term for freelancers and the most effective for maintaining healthy cash flow. Learn when to use Net 7 and how to get clients to pay within the window.
Net 90 means payment is due within 90 days of the invoice date — the longest common B2B payment term. Learn when Net 90 is used, how to protect your cash flow, and how to negotiate shorter terms.
NSF (non-sufficient funds) occurs when a client attempts to pay by check or ACH but the account lacks sufficient funds.
An opening balance is the amount in an account at the start of an accounting period, used when beginning new accounting software or fiscal years.
Operating costs are the ongoing expenses incurred in running a business day-to-day, including both fixed and variable expenses.
Operating profit is the money your business earns from its core operations before interest and taxes. Learn the operating profit formula, why it matters more than gross revenue, and how to improve it.
An overdue invoice is any invoice that has not been paid by its due date. Learn why invoices go overdue, how to follow up effectively, and when to escalate to collections or small claims court.
The overhead rate allocates indirect business costs to projects or hours, revealing the true cost per billable hour.
A partnership agreement is a legal contract between business partners that defines ownership, profit sharing, responsibilities, and dispute resolution.
A payment application is a formal request for payment submitted on construction, renovation, or large-scale projects, often tied to completed work.
A payment due date is the specific date by which payment must be received to be considered on time.
Payment gateway explained in plain English. See how it works with invoicing, transaction fees, popular providers, and how small businesses can start accepting online payments.
A payment processor is the technology company that handles credit and debit card transactions between a merchant and the card networks.
Payment terms define when and how a buyer must pay a seller. Learn about Net 30, Net 15, due on receipt, late fees, early-pay discounts, and how to set payment terms that protect your cash flow.
Pro bono work is professional services provided free of charge for charitable or public good purposes, distinct from discounted work.
Profit margin measures how much of your revenue you keep as profit after all expenses. Learn gross, operating, and net profit margins, and practical ways freelancers can improve theirs.
What is the meaning of profit? Profit is the amount of money your business has left after all expenses are paid. Learn the difference between gross, operating, and net profit, and why profit is the real measure of business success.
What is a proforma invoice? Understand the proforma invoice meaning, when to use one, how it differs from a regular invoice, and when it is appropriate for freelancers and small businesses.
Project management is the discipline of planning, organizing, and managing resources to deliver specific goals within defined constraints.
What is a purchase invoice? Learn the difference between purchase invoices and sales invoices, how accounts payable works, and how to track vendor purchases in your business accounting.
A purchase order (PO) is a commercial document issued by a buyer to authorize a purchase before payment. Learn the difference between a PO and an invoice, when freelancers need them, and how to use them in your billing workflow.
The purchase order definition — what exactly is a PO, how does it differ from other commercial documents, and what legal weight does it carry in B2B transactions?
What does a purchase order mean in practice? Learn what a PO signals in a business transaction, how it protects both buyers and sellers, and why it matters in B2B freelancing.
Purchase order vs invoice — what's the difference? Learn when each document is used, who issues it, and how AP teams match them for accurate B2B billing and payment processing.
Purchase requisition vs purchase order — what's the difference? Learn how these two procurement documents relate to each other and when each is used in the B2B purchasing process.
A quote is a fixed price; an estimate is an approximation. Learn the key differences between quotes and estimates, when to use each, and how to convert them into invoices.
A quote is a detailed price estimate provided to a prospect before work begins, which becomes binding when the client accepts.
What does receipt mean? A receipt is proof of payment — a document confirming that money was exchanged for goods or services. Learn about receipt types, their role in accounting, and how digital receipts are replacing paper.
A recurring invoice is automatically generated and sent at regular intervals for ongoing services. Learn how to structure retainer billing, set payment terms, and automate recurring invoices for predictable cash flow.
A refund policy defines the terms under which a client can request a refund, protecting both the freelancer and the client.
What does request for proposal (RFP) mean? Learn what an RFP is, how it differs from RFQ and RFI, the RFP process, and how freelancers and agencies can win government and corporate RFP bids.
A retainer SOW is a scope of work document that defines how work will be executed under a monthly retainer arrangement.
A revenue forecast projects future income based on pipeline, historical trends, and market conditions.
Revenue recognition is the accounting principle of recording income when it's earned, not when payment is received.
What does RFP mean in business? Learn what a Request for Proposal is, what the RFP process involves, how it differs from other procurement methods, and how to respond to RFPs successfully.
Risk management is the process of identifying, assessing, and mitigating business risks before they become problems.
ROI measures the financial return from an investment relative to its cost, used to evaluate business decisions.
An S corporation is a tax designation that lets business owners reduce self-employment tax while maintaining liability protection. Learn how S-corp status works, when it makes sense, and how to elect it.
Scope-of-work is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding scope-of-work helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Scope vs statement of work — what's the difference? Learn how project scope and a statement of work relate to each other, how they differ, and how to use both to manage freelance project boundaries.
A self-employed person operates their own business without being employed by a company. Learn how self-employment affects your taxes, legal status, benefits, and what it means to be your own boss.
A subcontractor agreement is a contract between a prime contractor and a subcontractor defining the scope, payment, and responsibilities of the subcontracted work.
A tax deduction reduces your taxable income, saving you money. Learn the most valuable deductions for freelancers — from home office to equipment — and how to claim them correctly.
A Tax ID is an identifier used by tax authorities to track your tax obligations — includes EINs, SSNs, and state tax IDs.
A tax write-off is an expense that reduces your taxable income, lowering the amount of tax you owe.
Time tracking is the discipline of recording how you spend your work hours, enabling accurate billing, job costing, and profitability analysis.
A trial balance is an accounting report listing all account balances to verify that total debits equal total credits.
Waterfall payment is a sequential payment structure where funds are distributed to payees in priority order as cash becomes available.
B2B payments are transactions between businesses—vendors, contractors, suppliers. Learn the different B2B payment methods, their costs, speeds, and which are best for freelancers working with other businesses.
Billable hours explained in plain English. Learn how to calculate your hourly rate, track billable hours accurately, and maximize the percentage of your time that's actually paid.
Debits and credits are the foundation of all accounting. Learn how they work in double-entry bookkeeping, how they affect your balance sheet and income statement, and why understanding them is essential for freelancers who want to manage their finances properly.
Net D payment terms (Net 30, Net 60, Net 90) specify how many days after the invoice date payment is due. Learn what Net D means, common variations, and how to negotiate payment terms that work for your freelance business.
Passive Activity Loss (PAL) rules limit the deduction of losses from passive activities. Learn what constitutes a passive activity, how PAL rules work, material participation tests, and real estate professional exceptions.
1099-contractor is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding 1099-contractor helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
1099-form is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding 1099-form helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
2-10-net-30 is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding 2-10-net-30 helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
A bid bond is a financial guarantee that a contractor will honor their bid and sign the contract if awarded the project. Learn how bid bonds work, why they're required, and their role in construction and government contracting.
A billing cycle is the recurring interval at which a business invoices its customers for products or services delivered.
What is a billing statement? Learn what a billing statement is, how it differs from an invoice, when billing statements are used, and what information they contain for both B2B and consumer billing.
Business license explained in plain English. Learn what licenses you need to operate legally, how to apply, costs, and which industries require specific licenses.
Business proposal explained in plain English. Learn how to write a winning freelance proposal, what sections to include, and how it differs from a quote, estimate, or contract.
A cafeteria plan (Section 125 plan) allows employees to pay for qualifying benefits with pre-tax dollars. Learn how cafeteria plans work, common benefit offerings, advantages for employers and employees, and enrollment rules.
Change order explained in plain English. Learn what a change order contract is, how to create one, why it's essential for contractors and freelancers, and how to avoid scope creep.
Chart of accounts explained in plain English. Learn how to organize your business's financial accounts, what categories to include, and how it feeds into your bookkeeping.
A cleared payment is money that has fully transferred from the client's account to yours — the point at which the transaction is complete and the funds are available.
A client portal is a private online workspace where clients can view invoices, approve deliverables, and communicate with you. Learn how client portals improve freelance workflow and payment collection.
Collection agency explained in plain English. Learn what collection agencies do, when to use one, how they affect your clients, and what it means for your freelance business.
A collection call script is a structured phone conversation guide for recovering overdue payments from clients. Learn the key elements of effective collection calls, dos and don'ts, and how to maintain client relationships while collecting.
Commercial invoice explained in plain English. Learn what a commercial invoice is, how it differs from a regular invoice, what information it needs for international shipping, and how to create one for cross-border freelance work.
A contra account is an account that offsets a related parent account. Learn how contra accounts work, common examples like accumulated depreciation and allowance for doubtful debts, and why they matter.
What is a contract? Learn the legal definition, how contracts work in freelance and B2B relationships, the essential clauses every freelancer should understand, and how invoices relate to contracts.
A cost-plus contract pays you for all project costs plus a markup for profit. Learn how cost-plus billing works, what a typical fee structure looks like, and when this contract type is appropriate for freelancers.
A CPA (Certified Public Accountant) is a licensed accounting professional. Learn when freelancers need a CPA, what CPAs do that tax software can't, how to find the right CPA for your freelance business, and what it costs.
A credit invoice (or credit memo) is a document that reduces the amount a client owes you — or states money owed to the client. Learn when to issue credit invoices and how they differ from voided invoices.
A credit note is a document issued by a seller to a buyer, reducing or canceling an amount owed on a previously issued invoice.
What is a credit note? Learn what a credit note is, when and why to issue one, what information it must include, and how credit notes work in accounts payable and receivable workflows.
A delivery note (also called a packing slip or goods receipt) is a document that accompanies a shipment, confirming what goods were delivered and in what condition. Learn how freelancers and small businesses use delivery notes in their workflow.
A deposit invoice requests an upfront payment before work begins, protecting sellers from non-payment and cash flow gaps.
A digital receipt is an electronic version of a purchase receipt — delivered via email, SMS, or app. Learn how digital receipts work, their advantages over paper, and how to manage them for business expense tracking.
A draw request is a formal application for funds from a construction loan or escrow account — typically for progress payments. Learn how draw requests work, when they're used, and how to submit one correctly.
A hold harmless clause is a contract provision that protects one party from liability for damages or injuries caused by the other party. Learn how these clauses work, why they're essential in freelancer contracts, and what to watch for.
A homestead exemption reduces the taxable value of your home, lowering your property tax bill. Learn how homestead exemptions work at the state and local level, eligibility requirements, and how to apply.
Journal entry explained in plain English. Learn what journal entries are, how double-entry bookkeeping works, and why every financial transaction gets recorded as one.
What is a land contract in real estate? Learn how land contracts work, how they differ from traditional mortgages, the risks and benefits for buyers and sellers, and how they relate to installment sales.
Liability waiver explained in plain English. Learn what liability waivers do, how to use them in contracts, and why freelancers and service providers need them.
Local taxes are taxes levied by cities, counties, school districts, and special districts. Learn about local income taxes, property taxes, sales taxes, and other local levies that affect your personal and business finances.
Mechanic's lien explained in plain English. Learn what it is, how contractors and freelancers file one, deadlines, and how it protects your right to get paid.
A milestone invoice is issued when a specific phase or deliverable in a project is completed, rather than billing the full amount upfront or at the end.
Non-compete agreement explained in plain English. Learn what they do, whether they're enforceable in your state, what freelancers and employees should know before signing.
A Non-Disclosure Agreement (NDA) is a legal contract that protects confidential information shared during business relationships. Learn what NDAs cover, how they work for freelancers, and when you should and shouldn't sign one.
A pass-through entity is a business structure where profits pass directly to owners' personal tax returns — no corporate tax. Learn how LLCs and S-Corps work, when freelancers should consider them, and the tax trade-offs.
Payment plan explained in plain English. Learn installment plans, payment plan agreements, IRS payment plans, and how to structure one for unpaid client invoices.
Payment receipt explained in plain English. Learn what a payment receipt is, what information it should include, how it protects freelancers and clients, and how to automate receipt delivery with every invoice.
Payment reminder explained in plain English. Learn how to write professional payment reminder messages, when to send them, and how automating your invoice follow-ups can improve cash flow without damaging client relationships.
A performance bond is a financial guarantee that a contractor will complete a project as agreed. Learn how performance bonds work, when they're required, and how they affect invoicing and payment in construction and service contracts.
Permanent accounts (real accounts) carry balances across accounting periods on your balance sheet. Learn what permanent accounts are, how they differ from temporary accounts, and why they matter for your financial statements.
A Point of Sale (POS) system is where a transaction is completed — the checkout process where customers pay. Learn how POS systems work, why they matter for retail freelancers, and how to choose the right one for your business.
A proforma invoice is a preliminary bill sent before goods or services are delivered, stating the estimated cost. Learn when to use it, how it differs from a regular invoice, and its legal status.
A punch list is a document listing incomplete or defective work that a contractor must finish before a project is considered complete. Learn how punch lists work in construction and service contracts and how they affect invoicing.
A purchase order (PO) is a commercial document issued by a buyer to authorize a purchase before payment. Learn the difference between a PO and an invoice, when freelancers need them, and how to use them in your billing workflow.
A purchase requisition is an internal approval document that starts the purchasing process inside a company before a purchase order or payment is issued.
Real-Time Payments (RTP) are instant bank-to-bank transfers available 24/7/365. Learn how RTP works in the US, how it differs from ACH, and why it matters for your cash flow.
A remittance advice is a document sent by a buyer to a seller showing that payment has been made or is being processed.
Request for proposal (RFP) explained in plain English. Learn what an RFP is, how to respond to one as a freelancer, and how businesses use RFPs to select vendors.
A retainer agreement is a contract where a client pays you upfront to reserve your services over a set period. Learn how retainers work, pros and cons for freelancers, and how to invoice for retainer-based work.
A retainer invoice bills a client in advance for ongoing services, securing the freelancer's availability and providing predictable income.
A self-billing invoice is when the customer — not the supplier — generates the invoice for the transaction. Learn how self-billing works, when it's used, and the risks it creates for freelancers.
A short payment is when a client pays less than the invoice total. Learn how to handle short payments professionally, record them correctly, and prevent them from becoming a pattern.
Sole proprietorship explained in plain English. Learn what it means to operate as a sole proprietor, how it affects your taxes, liability risks, and whether you should upgrade to an LLC.
A Statement of Work (SOW) is a formal document that defines a project's scope, deliverables, timeline, and payment terms. Learn how freelancers write SOWs, how they differ from contracts, and why they prevent scope creep.
Subcontractor explained in plain English. Learn what a subcontractor is, how they differ from employees, tax implications, and how to hire and manage subcontractors.
SWIFT is the global messaging network that moves trillions of dollars in international wire transfers daily. Learn how SWIFT works, what it costs, how long it takes, and what alternatives exist.
Tax bracket explained in plain English. Learn how marginal tax rates work, what percentage of your income goes to taxes at different income levels, and how it applies to freelance taxes.
Tax credit explained in plain English. Learn how tax credits differ from deductions, what credits freelancers qualify for, and how to claim them to directly reduce your tax bill.
A Tax Identification Number (TIN) is an identifying number used for tax purposes — your SSN, EIN, or ITIN. Learn which TIN you need as a freelancer, how to apply for an EIN, and how TINs connect to 1099s and tax filing.
Temporary accounts (nominal accounts) are reset at the end of each accounting period. Learn how temporary accounts work, which accounts are temporary, and why they get closed at year-end.
A termination clause defines how and when a contract can be ended by either party. Learn how termination clauses work, what they should include, and how to protect yourself as a freelancer when contracts end.
A timesheet invoice documents hours worked so clients can see exactly where time was spent. Learn how to create timesheet invoices for hourly work, what to include, and how they differ from standard project invoices.
A void invoice is an invoice that has been cancelled before payment was made — it's marked as void to prevent accidental payment. Learn when to void invoices, how to do it properly, and how it differs from a credit invoice.
Accounts receivable (AR) is the money owed to your business by clients for goods or services delivered but not yet paid for. Learn how to manage AR, reduce overdue invoices, and improve cash flow.
Accounts reconciliation is the process of comparing your internal financial records to bank and credit card statements to ensure they match. Learn how to reconcile your accounts and why it's critical for freelancers.
Accrual-accounting is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding accrual-accounting helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Accrued liability is an accounting obligation you've incurred but haven't paid yet. Learn how freelancers and small business owners encounter accrued liabilities, how to record them, and why they matter for accurate financial reporting.
Accrued revenue is income earned but not yet invoiced or received. Learn how accrued revenue works under accrual accounting, why it matters, and how to record it correctly.
Advance-invoice is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding advance-invoice helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
AIA billing is a standardized invoicing format created by the American Institute of Architects, widely used in construction. Learn how AIA billing forms work, why they're used, and how to prepare AIA invoices for construction projects.
Amortization explained in plain English. Learn how it applies to loan payments, intangible assets, and how freelancers can use amortization schedules for business loan planning and financial forecasting.
An accounts aging report (aging report) lists all outstanding client invoices grouped by how long they've been unpaid. Learn how to read an aging report, why it matters for cash flow, and how to use it to collect payments faster.
ACH payment (Automated Clearing House) is an electronic bank-to-bank transfer used widely in the US for direct deposits and invoice payments. Learn how ACH processing works, timelines, and how it compares to wire transfers and checks.
An annual report is a comprehensive document summarizing a company's financial performance and operations over the past year. Learn what annual reports contain, which businesses are required to file them, and how freelancers use financial summaries.
An asset is anything your business owns that has monetary value. Learn the difference between current and fixed assets, how depreciation affects asset value, and why understanding assets is essential for freelancers building long-term financial health.
An early payment discount (also called a prompt payment discount) offers clients a financial incentive to pay invoices before the due date. Learn the common structures, pros and cons for freelancers, and how to offer early payment terms effectively.
An electronic invoice (e-invoice) is a digital invoice sent and received in a structured format. Learn how e-invoicing works, its benefits for freelancers, and how it differs from PDFs and email invoices.
What is an expense report? Learn what it is, what it contains, how to create one properly, and how AI-powered tools simplify expense reporting for small businesses.
Expense report explained in plain English. Learn what an expense report is, how to fill one out correctly, common categories, and how freelancers track business expenses.
A business expense is any cost incurred to generate income. Learn the difference between deductible and non-deductible expenses, common freelancer deductions, and how to track expenses properly to minimize your tax bill.
An indemnification clause (indemnity clause) is a contract provision that says one party will cover the other's losses from specified legal risks. Learn how indemnification works in freelance contracts and why it matters.
Indirect tax is a tax levied on goods and services rather than directly on income or property. Learn about sales tax, VAT, excise taxes, and tariffs — how they work, who pays them, and how they affect pricing.
An interim invoice is a progress or mid-project invoice sent before the final invoice. Learn when to use interim invoices, what they should include, and how they help freelancers maintain cash flow on long projects.
An invoice number format is the structured system used to assign unique identifiers to each invoice. Learn the 5 most common formats, best practices, and how to choose the right one for your freelance business.
Learn what an invoice is, why it matters, and how to create professional invoices that get you paid faster. The complete guide for freelancers and small businesses.
An itemized receipt is a detailed purchase document listing each item bought, its price, and any applicable taxes separately. Learn why itemized receipts matter for business expenses, tax deductions, and expense tracking.
Organizational structure defines how a business is legally organized and structured — sole proprietorship, LLC, partnership, corporation. Learn how to choose the right structure for your freelance business, including tax and liability implications.
What is an RFP? Learn how requests for proposal work, how they differ from quotes and bids, the key sections of an RFP document, and how to respond to RFPs as a freelancer or small business.
What is automated bookkeeping? Learn how AI and automation handle daily financial recording, reduce errors, save time, and how Eonebill fits into your workflow.
Average Collection Period (ACP) measures how long it takes to collect payment from clients. Learn how to calculate ACP, what it reveals about your AR health, and how to reduce collection times.
Balance-due is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding balance-due helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Bank reconciliation explained in plain English. Learn step-by-step how to match your books to your bank statement, catch errors, detect fraud, and keep your accounting accurate.
Batch invoicing is creating and sending multiple invoices at once rather than one at a time. Learn how batch invoicing works, when to use it, and how it helps freelancers save time and streamline their billing workflow.
Bonus depreciation allows businesses to deduct the full cost of qualifying property in the year it's placed in service. Learn how bonus depreciation works, which assets qualify, recent law changes, and how it compares to Section 179.
What is bookkeeping? Learn the definition, core tasks, why it matters for small businesses, and how AI-powered tools automate the process in 2026.
Bookkeeping is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding bookkeeping helps freelancers and small business owners set clear payment expectations with clients and maintain healthy [cash flow](/glossary/cash-flow).
Break-even-point is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding break-even-point helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Burn-rate is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding burn-rate helps freelancers and small business owners set clear payment expectations with clients and maintain healthy [cash flow](/glossary/cash-flow).
Business valuation determines the economic value of a company for investment, sale, or strategic planning. Learn the main valuation methods — DCF, comparable transactions, multiples — and how freelancers and small business owners can value their businesses.
Business-expense is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding business-expense helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Capital loss carryover allows you to deduct net investment losses against future capital gains in subsequent tax years. Learn how carryover rules work, how long losses carry forward, and how to maximize their tax benefit.
Cash Application is the process of matching incoming payments to open invoices. Learn how cash application works, why it prevents AR disputes, and how to automate it as a freelancer or small business.
Cash-basis-accounting is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding cash-basis-accounting helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Cash-flow-forecast is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding cash-flow-forecast helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Change-order is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding change-order helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Chargeback is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding chargeback helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Constructive receipt is an accounting and tax concept that determines when income is taxable — even if you haven't physically received it. Learn how constructive receipt affects your freelance tax obligations and invoicing strategy.
Contingent liability is a potential financial obligation that may or may not become real depending on future events. Learn how contingent liabilities appear in freelance contracts, how to account for them, and why they matter for your business.
What is contract work? Learn the different types of contract work arrangements, how freelancers and independent contractors are classified, and what contract-based engagements mean for your taxes and invoicing.
Cost basis is the original value of an asset for tax purposes — what you paid for it. Learn how to calculate cost basis, why it matters for business assets, and how it relates to invoicing and expense tracking.
Cost-of-goods-sold is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding cost-of-goods-sold helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Days Payable Outstanding (DPO) measures how long a company takes to pay its suppliers. Learn how to calculate DPO, what it means for cash flow, and how freelancers can optimize it.
Days Sales Outstanding (DSO) measures how long it takes to collect payment after invoicing. Learn how to calculate DSO, what it means for your freelance cash flow, and how to reduce DSO to get paid faster.
Debit-note is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding debit-note helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Deferred-[revenue](/glossary/revenue) is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding deferred-[revenue](/glossary/revenue) helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Depreciation is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding depreciation helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Direct Debit is an authorized payment method where a payee pulls funds from your bank account. Learn how Direct Debit works, ACH vs Direct Debit, how to set it up, and the risks involved.
Double-entry accounting is the gold standard of bookkeeping where every transaction affects at least two accounts. Learn how it works, why it matters, and how it applies to invoicing and small business finance.
Dunning is the systematic process of following up on unpaid invoices to collect payment. Learn how to build an effective dunning strategy, what to say in payment reminders, and how automation can recover lost revenue.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the most-watched financial metric in business. Learn how to calculate it, what it tells you, and why lenders and investors care about it.
Electronic filing (e-filing) is submitting tax returns and documents to the IRS and state agencies online. Learn how e-filing works, which forms freelancers can e-file, and why e-filing is faster, more accurate, and more secure than paper filing.
Equity financing is raising money by selling ownership stakes in your business. Learn the difference between equity and debt financing, common equity financing sources, and when equity financing makes sense for growing businesses.
Estimated-tax is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding estimated-tax helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
What is expense management? Learn how it works, why it matters, the software tools involved, and how AI-powered platforms like Eonebill automate it end-to-end.
Final-invoice is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding final-invoice helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Flat-rate is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding flat-rate helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Float is the time between when a payment is initiated and when funds actually become available. Learn how payment float works, why it matters for cash flow, and how to manage it in your freelance business.
Force majeure is a contract clause that frees both parties from liability when an extraordinary event prevents performance. Learn how it works in freelance contracts and invoicing situations.
Form 1065 is the U.S. tax return filed by partnerships and multi-member LLCs. Learn what's on Form 1065, Schedule K-1, the concept of pass-through taxation, and why freelancers with business partners need to understand this form.
1099-NEC Form explained in plain English. Learn what the 1099-NEC is, when clients must send it to you, what income to report, and how it relates to your freelance tax obligations.
W-2 Form explained in plain English. Learn what the W-2 is, who receives it, what boxes to check, and how it relates to payroll, contractor classification, and tax filing as a freelancer.
Freelance-contract is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding freelance-contract helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
GAAP (Generally Accepted Accounting Principles) is the US accounting framework every US business should follow. Learn what GAAP covers, why it matters, and how it affects your freelance finances.
Gross-profit is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding gross-profit helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
GST (Goods and Services Tax) explained in plain English. Learn how GST works in Canada, Australia, India and other countries, how it differs from VAT, and what freelancers need to know about GST on invoices.
Hourly-rate is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding hourly-rate helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
IFRS (International Financial Reporting Standards) is the set of accounting rules used in 140+ countries. Learn how IFRS works, how it differs from GAAP, and what it means for your business.
Income is the revenue your business earns from delivering goods or services. Learn the different types of income (gross, net, ordinary), how freelancers report it on tax returns, and how to maximize your income clarity.
Inside sales is a remote sales model where representatives sell products or services by phone, email, or video instead of in-person. Learn how inside sales works, how it differs from field sales, and why it's the dominant model for B2B SaaS companies.
Intellectual-property is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding intellectual-property helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Invoice aging tracks how long invoices have been outstanding — showing which are current, which are overdue, and which are at serious collection risk. Learn how to use invoice aging to manage cash flow and improve payment collection.
Invoice discounting is a way to get cash immediately by selling your unpaid invoices to a factoring company for less than face value. Learn how invoice discounting works, its costs, and when it makes sense for freelancers.
What is invoice? A clear explanation of what an invoice is, what must be on one, the different types, and how to send invoices that get you paid faster as a freelancer or small business.
IP assignment (intellectual property assignment) transfers ownership of creative work from the creator to the client. Learn why IP assignment clauses matter in freelance contracts and how to negotiate fair terms.
Kill-fee is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding kill-fee helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Know Your Client (KYC) is a compliance requirement requiring businesses to verify client identity and assess risk. Learn how KYC works in financial services, why it matters, and what freelancers need to know about client verification.
MACRS (Modified Accelerated Cost Recovery System) is the primary depreciation method for business assets in the United States. Learn how MACRS works, which property classes apply, and how freelancers deduct equipment costs over time.
Markup is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding markup helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Milestone payment is a project payment structure where funds are released at predetermined project phases or deliverables. Learn how to structure milestone payments for freelance projects, set payment checkpoints, and protect your cash flow.
MRR (Monthly Recurring Revenue) is the predictable revenue your business earns each month from subscriptions. Learn how to calculate MRR, why it matters for valuation, and how to grow it.
Negative accounts receivable appears when your AR balance is a credit (negative) number—meaning you've been overpaid or collected more than invoiced. Learn what causes it and how to fix it.
Net amount = final invoice total after all discounts, taxes, and fees are applied. Learn how to calculate it with a real invoice example and formula.
Net income explained in plain English. Learn what net income is, how to calculate it, why it matters for freelancers, and how it differs from gross income, revenue, and profit.
Net-45 is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding net-45 helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Net-profit is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding net-profit helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Operating income measures the profit from your core business operations, excluding taxes and interest. Learn how to calculate it, why it matters for invoicing, and how freelancers can improve it.
Operating-expense is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding operating-expense helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Ordinary income is revenue from regular business activities — the core of what freelancers earn. Learn how ordinary income differs from capital gains, how it's taxed, and what the 1099 reporting context means for your freelance practice.
Overhead is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding overhead helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Partial-payment is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding partial-payment helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Past-due-invoice is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding past-due-invoice helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Payment processing explained in plain English. Learn how transaction fees work, what happens behind the scenes when you get paid, and how to minimize costs as a freelancer.
Payment-dispute is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding payment-dispute helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Payment-link is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding payment-link helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
PCI compliance (Payment Card Industry Data Security Standard) is mandatory for any business accepting credit card payments. Learn the 12 requirements, compliance levels, and what happens if you're not compliant.
Per diem explained in plain English. Learn what per diem rates are, how freelancers and small business owners use them for travel and business expense deductions, and what the IRS allows.
Petty cash is a small amount of cash kept on hand for minor business expenses. Learn how to manage it, track it, and when invoicing is the better option for your freelance business.
Prevailing wage explained in plain English. Learn what prevailing wage laws mean for freelancers and contractors working on government or public projects, and how it affects your rates.
Profit-and-loss is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding profit-and-loss helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Progress billing is invoicing for work completed so far on a project, rather than waiting until the end. Learn how progress billing works in construction and long-term projects, and how to implement it for your freelance business.
Progress-payment is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding progress-payment helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Quarterly estimated tax explained in plain English. Learn IRS deadlines, how to calculate what you owe, and how freelancers and self-employed people stay compliant.
Quarterly-taxes is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding quarterly-taxes helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Ratio analysis is a quantitative method of evaluating a company's financial health using key financial statement ratios. Learn about liquidity, profitability, leverage, and efficiency ratios, and how freelancers can use ratio analysis to assess their business.
Reimbursement explained in plain English. Learn how expense reimbursement works, what it means for freelancers, and how to request and track reimbursable expenses.
Remittance is the process of sending money from one party to another — typically a payment to settle an invoice. Learn how remittance works in invoicing, how to track it, and what a remittance advice slip is.
Retainage (or retention) is a percentage of each progress payment held back until a project is complete. Learn how retainage works in construction and service contracts, why it exists, and how it affects your cash flow as a freelancer.
Retained earnings explained in plain English. Learn what retained earnings means, how it appears on your balance sheet, and why it matters for freelancers and small business owners.
Return on Investment (ROI) measures the profitability of an investment relative to its cost. Learn how to calculate ROI, what makes a good ROI, and how freelancers use ROI to evaluate business decisions.
Revenue is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding revenue helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Rush-fee is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding rush-fee helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Sales-tax is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding sales-tax helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Schedule A is the IRS form for itemizing deductions instead of taking the standard deduction. Learn what expenses are deductible on Schedule A, who benefits from itemizing, and how it affects your tax strategy.
Schedule C explained in plain English. Learn what IRS Schedule C is, how freelancers use it to report income, what expenses to deduct, and how to file it correctly with your Form 1040.
Scope creep explained in plain English. Learn what causes scope creep, how to prevent it in freelance projects, and how to handle it professionally when it happens to you.
Section 1244 Stock allows investors in qualifying small businesses to deduct ordinary (而非 capital) losses on stock — a significant tax advantage. Learn what qualifies, how the deduction works, and the rules for claiming Section 1244 losses.
Seed capital is the initial funding used to start a business — often from personal savings, friends, family, or early investors. Learn where seed capital comes from, how to raise it, and how it differs from venture capital.
Self-employment-tax is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding self-employment-tax helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Straight-Through Processing (STP) automates end-to-end transaction processing without manual intervention. Learn how STP works, where it's used, and why it matters for payment efficiency.
Stripe-payment is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding stripe-payment helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Subtotal = total before tax and discounts. See the formula, real invoice examples, and how subtotal vs total works.
Tax liability explained in plain English. Learn about federal and state tax obligations for freelancers, sole proprietors, LLCs, and how to reduce what you owe legally.
Tax-deductible is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding tax-deductible helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Tax-deduction is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding tax-deduction helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Tax-exempt is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding tax-exempt helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Tax-invoice is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding tax-invoice helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
C-Suite refers to the senior executive leadership team of a company — CEO, CFO, COO, CTO, CMO and other C-level executives. Learn what each C-suite role does, what it takes to reach the C-suite, and why it matters for business understanding.
The debt ratio measures what percentage of your assets are financed by debt. Learn how to calculate it, what it means for your financial health, and why lenders and investors use this metric to evaluate freelancers and small businesses.
Home office deduction explained in plain English. See real examples, IRS requirements, and how it applies to freelancer and small business tax deductions.
Mileage deduction explained in plain English. Learn the 2026 IRS mileage rate, what trips qualify, how to track and claim the deduction, and whether it's worth it for freelancers.
The Nanny Tax refers to federal and state employment taxes owed when you hire household workers like nannies, housekeepers, or senior caregivers. Learn who qualifies, how to comply, and what expenses are involved.
The solvency ratio measures whether your business generates enough cash flow to cover long-term debt obligations. Learn the formula, how to interpret results, and why lenders care about it.
Time and Materials (T&M) is a contract type where you charge clients for actual time spent plus materials costs. Learn how T&M billing works, when to use it, and how it compares to fixed-price contracts.
VAT (Value Added Tax) explained in plain English. Learn how VAT differs from sales tax, when freelancers and small businesses need to register, and how to handle VAT on international invoices.
Venture capital is institutional investment in early-stage, high-growth companies. Learn how VC works, what VCs look for, how it differs from seed capital, and whether venture funding is right for your business.
W-9-form is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding w-9-form helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Weighted average is a statistical method that gives different values different importance (weights) in calculating an average. Learn how to calculate weighted average, where it's used in accounting and finance, and why it matters for freelancers.
Work in Progress (WIP) is incomplete project work that has been performed but not yet delivered or invoiced. Learn how project-based freelancers track WIP, why it matters for cash flow, and how to manage WIP in your business.
Work-for-hire is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding work-for-hire helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Work-order is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding work-order helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
Working capital explained in plain English. Learn the working capital formula, why it matters for small business survival, and how to improve it with invoicing strategies.
Write-off is a billing and payment term commonly used in freelance, contractor, and B2B contexts. It defines when payment is expected after an invoice is issued. Understanding write-off helps freelancers and small business owners set clear payment expectations with clients and maintain healthy cash flow.
A wire transfer is an electronic transfer of funds between bank accounts, used for large or urgent payments.
Create your first professional invoice in minutes — free, no sign-up required.