What does "net 30" mean in payroll terms?

In payroll and invoicing terms, "net 30" refers to the payment terms that specify payment is due within 30 days of the invoice receipt date. This means that upon receiving an invoice for services or goods provided, the recipient is expected to complete payment within a month.

Understanding these payment terms is crucial for managing cash flows and maintaining good relationships with vendors and service providers. Businesses often use this terminology to standardize payment processes and deadlines, ensuring financial expectations are clear between parties.