For online invoice service providers, it is best to focus and understand two things initially: first is to know that there are multiple industry segments who have their own specifications when it comes to billing and second is that there are different levels of such segments. One such segment is SMB (Small & Midsize Businesses) which has captured a substantial business market share. On the contrary, the same higher chunk between 75% to 80% only accounts for less than 25% of the total business revenue.

Such a gap indicates that it is time to ensure that the billing and payment experience works for hand in hand, especially for SMB customers. An online invoicing application can ease this by optimizing the invoice payment process. Following are the 4 points that customers have to be found very keen about. They are:

1) Strict Invoicing & Payment Terms

The reason to keep the invoicing and payment terms clear, precise and strict is only to ensure the proper timing of payment and easy flow of the process. Cash flow for any organization including SMB forms the basis of success and growth. Your invoice maker should ensure to send payment notification or reminder so as to receive on-time payments. Maintaining good client relationships carry the utmost value in this segment.

2) Multiple Business Model & Skillsets

Startup enterprises or large corporations aren’t as wide-spread segment as compared to SMB. You would find a wide range starting from local service vendor to retail chain with multiple shops. Hence, goes the division of handling and managing the financial tasks of the business. These varying models upon which businesses operate makes the job tedious of providing a unique and optimum to experience that might work with all kinds of processes.

3) Simplify The Process

Irrespective of the number of employees and the revenue generated, the workflow of billing and payment remains similar more or less. Once the invoice is received, it is reviewed pertaining to all the details mentioned and upon approval, the payment is completed and filing of the invoice.

4) A Digital Invoicing Solution

A PDF bill is not enough as it limits a customer to dig deep and find more information. They aren’t able to make direct payments from the bill. These all inadequacies form up the disputes, inquiries, and payment related dissatisfaction.

A small but smart investment in a proper invoicing system will not only save you time but also helps your business grow. Know how can your organization or business benefit from opting a professional invoice generator that can not only help you with time tracking but also in creating professional invoice estimates.

Moon Invoice – a perfect offline invoice software that can be accessed on any smartphone with any operating system have a wide range of customers whose payment methods has been simplified by offering multiple payment options and also simultaneously catering to the numerous features related to invoicing, estimates, purchase order, expense tracker, time tracker, sync, print, payment notifications and many more.

Summing Up:

The future of e-invoicing includes more aesthetic, holistic and customized services for buyers and suppliers. However, if all the industry players could rise to the obstacles then a universally crafted solution comprising of automated, secure, reliable and cost-effective practices could be established that will strengthen economies throughout the world.

Moon Invoice lets your business be on top of the competition with Instant Invoicing & Billing, an Easy track of Payment & Notifications, Accurate Insights & Reporting Data. Few amazing add-ons with Moon Invoice are that you can add & “Manage Multiple Businesses”, “22+ Professional PDF Templates”, “Import/Export & Print Utility” and data backup “iCloud sync & MoonSync support”.

Recurring Payments Vs Recurring Invoices

Recurring Payments	Recurring Invoices
Recurring payments charge the customer’s credit card account or debit card account on a predetermined schedule for the same amount as preapproved.	Send an invoice to your customer on a regular basis. The client receives the invoice but, money is not paid unless the customer approves.
A business that takes prepayment of money and sells a monthly subscription service and product. Subscription services are excellent examples of this.	A company that provides fixed services with billable hours is an excellent choice for recurring billing. For example law firms and consulting agencies.

Pros and Cons of Recurring Invoices

Pros	Cons
You eliminate the possibility of human error by automating the billing process. If you use a recurring invoice, you will not be concerned about forgetting to charge your customers for the things they ordered.	You must exercise caution while recurring billing to prevent issuing inaccurate pricing. This also holds for price changes that could take place right once an invoice is created.
If you provide your customers with the option for recurring billing, they are more likely to buy products regularly.	It could be difficult to cope with recurring invoices if a transaction fails for any reason.

Net 45	Invoice is due in full within 45 days with no early payment discount offered
2/10 net 45 terms	2% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/15 net 45 terms	1% discount if you pay within 15 days; otherwise full payment of the invoice is due in 45 days
1/10 net 45 terms	1% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/7 net 45 terms	1% discount if you pay within 7 days; otherwise full payment of the invoice is due in 45 days

Category	Net Method vs. Gross Method	Explanation
Calculation Approach	- Applies tax credits first; reduces taxable income before computing tax liability.	- Doesn't apply tax credits; computes taxable income without considering tax credits.
Tax Credit Eligibility	- Allows for greater likelihood of tax credit eligibility due to reduced taxable income.	- Limits tax credit eligibility because taxable income hasn't been reduced yet.
Itemized Deduction Requirement	- Lowers threshold requirement for itemizing deductions due to decreased taxable income.	- Raises threshold requirement for itemizing deductions due to higher taxable income.
Advantages	- Leads to lower taxable income and increases chances of meeting qualifications for other tax benefits.	- Results in higher taxable income compared to net method.
Disadvantages	- May miss opportunity to reduce tax burden if taxpayer doesn't itemize deductions or take advantage of tax credits.	- Increases taxable income and may result in higher overall tax bill.