Looking for a business loan
Thank you for your interest, our team will get back to you shortly
Thank you for your response
Thank you for your response
Our representative will get in touch with you shortly.
Recurring invoices have become very popular in modern business times because they can automatically charge customers at regular intervals.
A recurring invoice is sent to the customer at regular time intervals. They are normally sent every month. Under this invoicing method, the supplier first gets permission from the customer to regularly charge a regular amount until an agreed date for the ongoing service agreement. This method of invoicing is common with online software businesses, cable companies, gym or magazine subscriptions.
Recurring invoices are very convenient as the supplier is not required to wait for the customer or ask for payment details. Also, the customer is not required to send manual payments repeatedly. Some of the other benefits of raising recurring invoices are:
In this invoicing method, it is harder to trace errors as a standard invoice template is already set and sent to the customers regularly. But, under normal invoicing, the supplier sends an invoice to the customer, and if there is any error, the customer will send it back for resubmission. Thus, the error gets resolved immediately.
Under, recurring invoicing both identification and correction of errors is difficult.
Below are some of the templates of recurring invoices:
A recurring invoice shall contain all the details as required for a normal invoice. For more information about the contents, refer to our article on the tax invoice.
The workflow of a recurring invoice is as follows:
Using a recurring invoicing system depends upon the nature of your business. Below are examples of companies using recurring invoicing systems.
After going through the above examples, you can decide whether it is suitable for their business requirements.
An ideal recurring billing system provides: