Modern day time tracking system certainly helps in not only tracking time but also billable hours, generate reports pertaining to time tracking and much more. Individuals who are independent contractors or consultants or small and large entities who pay by the hour or bills their clients based on time should definitely opt for a billing or invoicing system that helps you in the process. Manual time-tracking is inefficient because it is not error-free, tedious and also time-consuming.

You need a modern day online invoicing application that increases your cash flow system by reducing any revenue loss as well as wastage of resources. Below mentioned are a few of the essential uses of invoice estimate app:

1) Gives Employees Better Focus

Most of the time do you find employees fooling around the task or probably don’t feel the sense of urgency to finish the task? You can make your employees take initiative and responsibility by introducing a professional online time tracking software. They can also take this opportunity to move forward as a personal challenge to finish the task in the given deadline for which companies can reward for the same to appreciate. Additionally, such an online time tracker keeps an employee always engaged with the work as he/she will always be landed with a task on-hand to complete.

2) Streamlining Client Billing

An average guess can be placed upon for a given task, however, a rough guess can’t be as accurate as a time-log entry. If you don’t record the exact time for a task, you won’t be able to bill for it. By logging correctly the time taken and by tracking it, your clients will be sure of what they are paying for as it is already documented as time-log records. Hence, it is obvious that online time tracking and billing tool can prove to be utmost important to contractors and entrepreneurs to streamline their billing process so as to save money.

3) Fair-play Overtime Remuneration

How many hours your employees have worked? Have they worked or logged in more than usual hours and are entitled to overtime pay? Companies need to track time for even non-exempt employees to ensure the correct documentation of extra hours and henceforth, for the accurate payroll process. If the team members don’t track time accurately which can lead to the discrepancy, fines, penalty, and disruption in the office.

4) Time Tracking Ensures Compliance & Accelerates Audits

Time tracking data help an organization to stay within the legal boundaries and remain compliant with the various government and industry-specific norms and regulations. Time tracking helps in reducing the third party audit cost. Managers can efficiently export employees time tracking and other relevant data to senior management for review to update and bring necessary changes in the process. Free invoice generator can help companies in multifarious ways.

5) Encourages Accurate Predictions & Benchmarking

Every organization has to deal with many projects throughout a year. Hence, to accurately determine the time that each activity or task will take is not possible especially with a manual tracking system in place.

Looking at the past data might help managers to reach up to an estimated time marking for the given number of tasks or work. From the past projects, they can even take an estimate of a number of hours it will take in completing similar kind of projects. More or less, with such a sequence manager can instantly create precise predictions and can set the benchmark for the project so as to generate maximum profit for any project.

Wrapping Up:

Moon Invoice, a simple and easy online invoicing platform can streamline your entire expense management process with its ‘Time & Expense Tracking’ feature. The feature can help you optimize, organize and can help you to take necessary action if your monthly/yearly expenses are heavily accountable.

Few of the ‘Expense Tracking’ features at a glance are:- Track Expense, Categorize Expense, Record Expense, Know Where You Spent More & Hassle-free Tax. Additionally, 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”, “60+ 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.