Beyond The Desk: Invoice Date vs Date of Receipt

When it comes to payment terms, staffing companies should always use the invoice date as the starting point, not the date the invoice is received. Using the invoice date is the industry standard, and it ensures you are getting paid on time for the work your employees have already completed. According to the American Staffing Association, most staffing companies set terms based on the invoice date, not receipt, because it aligns with standard accounting practices across industries.

Here’s why these matters. If you allow your clients to base the date they receive your invoice, you’re essentially giving them free extra time. For example, if it takes a client a week to process and acknowledge your invoice, and their terms are net 30 from the receipt date, you’ve just extended their payment window to 37 days or more. That delay is real money out of your pocket, especially in staffing where payroll obligations hit weekly. Over time, these extended terms increase your financing costs, slow down your cash flow, and reduce your ability to invest back into growing your business.

By sticking to invoice-date terms, you create fairness and accountability. Your team delivered the work, the timecards were approved, and the invoice reflects services rendered. There is no reason clients should gain additional float simply by delaying their internal processing.

Here is where my employer, Madison Resources, can help. Outsourcing invoicing, collections, and cash posting through Madison streamlines the process so invoices go out quickly and consistently.

Even better, Madison takes the extra step of verifying timecards against invoice entries before sending. That means invoices are not only accurate but also more likely to be paid within terms. It saves you the embarrassment of a wrong invoice going out, and it increases client confidence that what they receive is correct the first time.

As far as cash flow is concerned…. Madison funds the contract payroll when due and pays the proceeds (or profit) from those invoices the very next week!  So even if invoice payments slow a little, Madison customers have cash flow to run their business.

These functions are essential to scale a staffing business.

Strong terms and a reliable invoicing process protect your cash flow. Using invoice dates, not receipt dates, ensures you’re not unintentionally financing your client’s business. With Madison’s support, you can tighten your process, get invoices out the door faster, and get paid on time, keeping your business moving forward.