Let’s take a gruesome reality into the picture of doing business apart from building and maintaining client relationship, growth, stability, etc.is receiving regular on-time payments from the clients or customers. Because without that cash-flow it becomes very hard for your business to be in smooth operation.

Let me hit you hard with certain aspects-to-figure ratios that might be an eye-opener as to how traditional business models is affecting your business?

It might really be surprising to know but still, 80% of the businesses are still adapted to traditional invoicing. Now, here is the repercussion that this 80 % of them are facing, as follows:

49% – Preferred to make no payment in case of delayed invoicing

40% – Of small & medium businesses has unpaid invoices as clients or suppliers became insolvent

25% – Inculcating higher instances of late payment fees

However, the other drawbacks of traditional invoice models that affected Customer-Vendor relationship were:

– Negative cash flow

– High operational cost per invoice

– More entry errors for sender/vendor and receiver/customer

Well to sum up, neither your business could afford to waste time waiting for the receivables to be paid nor you will have time to personally follow up on each unpaid invoices. Considering business as a whole where there are lots of other things on the plate, it is understood that payment for your support/services/products, etc. is one thing that no business would like to worry about.

There are online invoicing programs (apps) available that does this job very efficiently and are completely reliable. These apps ensure that the invoices are directly emailed to the client. Some of these internet invoicing apps also go an extra mile by offering follow-up notices to send a gentle reminder to the client about outstanding amount. Follow-ups from these programs look professional as well as it does the job in a way that does not offend your customers. With certain features and inbuilt preference, you could also choose to receive the notification confirming once the client has received and approved the bill. Upon the acknowledgement of payment received, these invoicing apps also allow sending a thank you note, to further strengthen your relationship with your customer.

Let’s see in numbers few benefits of using mobile invoice processing system:

36% – Reduction in procure-to-pay cycle time

34% – Marginalised increase in improved visibility of business processes

34% – Efficient improvement in an audit process

29% – Proportionately lowered processing costs

Some of the other salient features are as follows:

Instant Billing – Save Time: Mobile invoicing solution offers instant billing transactions; helping clients to make payment electronically once the purchase or sales order is finalized.

Streamline Process: Removing the risk of double entries, these apps are integrated with accounting software program which saves a considerable amount of time on accounting paperwork.

Centrally Stored Data: With information & data stored remotely on the cloud, SMB’s can access, input and edit these records which can be accessed through any authorized device. These records could even be customized as per the unique expenses and costs on a need to need basis according to business specifications.

Enhancing Business-Client or Supplier-Vendor Relationship: Mobile/Online Invoicing solutions allows to manage the transparency between suppliers and vendors in entire payment process which bolster the relationship.

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

To put it in a nutshell, with the interconnectivity of devices and cloud computing, mobile devices have become the fastest growing business tools. With the adaptation of such technology, next-gen businesses would not only increase the operational productivity & profitability but also cater a drastic reduction in the complexity of doing the traditional invoicing methods.

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.