U.S.-based CPA, bookkeeper, fractional CFO, or finance manager with experience helping small businesses manage invoicing and payment terms: Can you share your perspective on Net 30 payment terms? Specifically: – What’s the biggest mistake small businesses make when offering Net 30? – What factors should they consider before offering it? – What’s one practical tip for protecting cash flow while using Net 30? – Have you seen early payment discounts (like 2/10 Net 30) actually work? Please also include a 1–2 sentence bio (e.g. “I’m a CPA working with service-based small businesses on invoicing, cash flow, and credit terms.”)

I'm working with service-based small businesses on invoicing, cash flow, and credit terms. The biggest mistake small businesses make with Net 30 payment terms is not thoroughly vetting clients' ability to pay on time. This can lead to cash flow issues if clients delay payments. Before offering Net 30, businesses should consider their own cash flow needs and the financial stability of their clients. One practical tip to protect cash flow while using Net 30 is to set clear payment terms and send reminders before the due date. Using automated invoicing tools can help you stay on top of this. As for early payment discounts like 2/10 Net 30, I've seen them work in certain industries, especially when clients are cash-rich and appreciate the savings. Offering this discount can incentivize quicker payments, benefiting both parties.