While there's no universal law setting a strict deadline, best practice is to invoice promptly (within 30 days for steady cash flow), though contractors often have 2 to 6 years to invoice, depending on state law and contract type (oral vs. written) before the statute of limitations for collecting debt runs out. For construction, timely invoicing is crucial, with liens often needing action within 90 days of work, and many states have prompt payment laws for contractors.
If you can't provide an invoice immediately, you should at least set aside time each month to process your invoices in a batch. This way, your invoices are being sent out on a monthly basis or within thirty days, which is a generally accepted time frame when it comes to how freelancers collect payments.
Stick within the legal time limit for invoicing.
Although the legal time limits for invoicing are usually forgiving, you should send invoices within 30 days to maintain a steady cash flow. Electronic signatures can help you keep track of your invoices.
Under the Limitation Act 1980, invoices can be issued up to six years after the work was completed or the goods were delivered. While there is no legal restriction within this time frame, issuing invoices promptly is always best to avoid disputes or complications.
What is the correct time to issue an invoice? Put simply, you should issue the invoice as soon as the service is completed or the product is delivered. The sooner you issue the invoice, the more likely it will be on the customer's mind, and the quicker they'll pay the amount due.
According to California Code of Civil Procedure § 337(1), the statute of limitations for a written contract is four years. Under § 339(1), the limit for an oral contract is two years.
Under the current guidelines, users must upload invoices within 30 days from the invoice date. If you miss this window, the IRP will reject the invoice, which means it won't be considered valid for GST compliance or for claiming input tax credit.
On the other hand, there's usually no legal requirement that bills be sent out in a timely fashion—so businesses can absolutely bill your months or even years after the fact. If it's a medical debt, there's the added confusion of insurance coverage and the challenge of understanding the bill in the first place.
Written Contracts: For debts involving written contracts, such as commercial agreements, promissory notes, or client service contracts, the statute of limitations extends to four years from the date of the breach.
30+ days late
If your client hasn't made payment (or meaningful contact) within 30 days of the invoice becoming due, it may be time to issue a letter before action (LBA), or to pass over the matter to a debt collection agency. An LBA gives your client formal notice that legal action is imminent.
Federal law says that invoices remain outstanding for up to 6 years; i.e., you can pursue a client for an unpaid invoice even if that invoice is 6 years old. Past that point, you'll probably need to seek legal action if you want to receive your payment.
Manner of Issuing Invoice
The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner: (a) The original copy being marked as ORIGINAL FOR RECIPIENT; (b) The duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and (c) The triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
If a customer asks for a tax invoice, you have 28 days to send it.
Contractors, similar to temporary workers, gain certain rights after two years of continuous service. These include protection from unfair dismissal and eligibility for redundancy payments. However, the specifics can vary depending on the nature of the contract and employment status.
the Work is, in the opinion of Canada, capable of completion or correction at a cost of not more than. 3 percent of the first $500,000; 2 percent of the next $500,000; and. 1 percent of the balance. of the Contract Amount at the time this cost is calculated.”
If the invoice does not comply with these requirements, the designated billing office must return it within 7 days after receipt, with the reasons why it is not a proper invoice.
Usually, there is no specific law on when to send an invoice (with some exceptions, see below) - however, once the statute of limitations has expired, you are no longer required to pay it.
Generally speaking, contractors should collect payment for services within a reasonable amount of time, and this usually ranges from 30 to 90 days. In many states, payment is required within 30 days of the service being completed.
Most companies don't realise that they are entitled to chase invoices that go back as far as 6 years. It is important to remember that the time limit starts from when your customer last acknowledged owing the debt or made a payment on account against the invoice, not from when the invoice became due.
In California, for instance, providers have one year from the date of service to submit claims, which allows for some variation in billing precision and adjustments.
The general rule is that if it becomes necessary to issue legal proceedings to recover an unpaid invoice, then the creditor must do so within the statutory time limit of six years from when the clock starts to tick.
How far back can you backdate an invoice? You can only backdate an invoice to reflect the true date of the underlying transaction, not arbitrarily for tax or reporting benefits.
The e-invoicing system is mandatory for all B2B and B2G businesses with an annual aggregate turnover exceeding Rs. 5 crore. Starting 1 April 2025, businesses with an AATO of Rs. 10 crore or more must upload their invoices to the IRP within 30 days of issuance.
(e) fails to issue invoice in accordance with the provisions of this Act or the rules made thereunder or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to twenty-five thousand rupees.
How long should I wait before sending an unpaid invoice to collections? Typically, wait 60–90 days past the due date. If all internal A/R efforts and communication attempts fail within that period, it's time to escalate. Beyond 90 days, recovery rates drop sharply.