Maximizing Your Small Business Profits During the Holiday Season
The holiday season is often hailed as the most wonderful time of the year, but for small businesses or e-commerce stores, it can also be the busiest and most...
The process of invoicing is one that many business owners struggle with.
Invoicing is one of the most challenging and time-consuming tasks small business owners and finance teams have to manage; from incorrect data, to missing invoices altogether.
If you have regular incoming payments, then one solution is to set up a recurring invoice to automate this process. A streamlined recurring invoice process minimizes the risk of human error, meaning you have more time to focus on the important parts of running your business.
This article will explore how recurring invoices work, plus tips for how to set them up in your accounting software.
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A recurring invoice is an invoice that’s sent at a regular cadence to the same customer and contains the same information each time.
For example, You may have a customer that subscribes to a service you offer at $11.99 per month. A recurring invoice would ensure that the invoice is sent out on the same date each month.
The same applies to goods and anything else you sell to a customer on a regular, recurring basis.
Before setting up a recurring invoice, this arrangement must be agreed upon with the customer.
Once the payment schedule and payment amount are agreed upon, a business can set up a recurring invoice. Recurring invoices are usually set up using invoicing software.
The software then sends out the invoice with all the correct details on the same date each month. The customer receives the invoice on time and can then pay the due amount.
💡 Top tip - You can include Wise Business account details on your invoice to make it easy for customers to pay you - whatever their local currency. |
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Any business can use a recurring invoice when there is a regular, repeating purchase made by a customer.
The only condition is that the expense should be the same every time, otherwise you will run into problems by under or overcharging the customer.
One of the easiest ways is to set up a recurring invoice through accounting or invoice software, such as QuickBooks or Xero.
Using QuickBooks as an example, here’s how you would set up a recurring invoice:¹
There are upsides and downsides to setting up recurring invoices. It’s worth weighing the pros against the cons before you go ahead and create them for your customers.
If you have overseas customers, then you need to make it as easy as possible for them to pay you.
With Wise Business, you can add your Wise account details to every recurring invoice. This way, customers know where to send the money when the invoice is issued.
What’s more, Wise lets customers pay the invoice in their local currency. When you have a Wise account, you’ll have access to up to ten local account details, so you can have a UK account number, and Euro IBAN details, for example, all in one place.
This can help speed up the payment process since it’s simplified on the customer’s end.
It also means you don’t lose out on costly exchange rate conversion fees, which means more money kept inside your business for more important things.
💡 For all you need to know about invoices, don't forget to read and bookmark the ultimate guide to invoicing from Wise! |
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Sources:
Sources checked November 9, 2021.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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