Missed payments are always there in accounts payable processes. Not sending invoices on time might be one of the reasons for this. Well, sending an invoice automatically on a periodic basis would resolve this problem. Recurring invoice feature exactly does this.
A recurring invoice is something sent to merchants on a regular schedule, avoiding delayed or missed payments. Let us see how recurring invoices can help standardize and streamline payment processes.
The following are some key advantages of recurring invoices:
Recurring invoices can streamline the cashflow and improves projections. When invoices are sent to suppliers on a periodic basis, you need not worry about missing payments. This is just like reminding suppliers about the payments prior to the payment date.
Speed up Payment Processes
We are all habituated in paying regular bills such as phone, internet and rent. By sending invoices at regular intervals, you encourage clients to follow the same payment routine. In addition, invoice software allows you to link the client’s credit card, which is the most convenient mode of payment.
Cut Down Time Spent on Chasing Payment
Recurring invoices speed up the payment process by spending a lot less time on chasing payments. No more worrying about payment reminders. Your clients don’t have to remember the payment and don’t have to pay any late fees.
Automates Payment Process
Online invoice software allows you to create an invoice from the template, set schedules and link credit card to make the payment. The invoice should go out on a regular schedule for timely payment and you need not duplicate unnecessary work.
Accounting software solutions such as SutiAP allows you to review recurring invoices before sending for payments.
Recurring invoices saves time and eliminates hidden costs
It takes time and costs you more to create, track and process an invoice. By implementing a recurring invoice system, you can cut unnecessary costs incurred while processing payments.
Focus on What Really Matters
Emphasize on other critical business areas such as marketing and sales in the time spent on sending invoices for payments. Undoubtedly, there are many benefits of having a recurring invoice system, but do you actually need one is the question.
Determining Whether Recurring Invoices Works for your Business
Some businesses need a recurring billing system while others do not. The following are some circumstances where the recurring invoice system is beneficial:
Service-based businesses that bill for a fixed number of hours every month
Businesses that offer monthly service packages or education and training services
Companies that provide access to a closed group for monthly subscription
Solution providers who charge a monthly license fee for their product usage
If you have the right software such as SutiAP, you can simply launch a recurring invoice campaign and sit back relax for the payment to happen. With SutiAP, setting up recurring invoice is easy. You have to simply customize the setting and you are good to go. Save time, money and watch your bank balance without having to chase clients for payment.