This is the concern at the end of the day for most of us and especially to a small business owner or startup solopreneur to get paid in a timely and organized fashion. It’s easy for a business not to make the organization a profit churning machine due to lack of cash flow, overdue payments and a lack of proper accounting.

In order to avoid these mishaps, it’s important to plan ahead for invoicing customers. Each business is different and hence it is of no use to ask or follow the invoicing practice of a specific business which is doing good. Moreover, you should rely on a system that can easily integrate with your business or company & as per your method of working.

Following are the steps we recommend to prepare yourself for efficient billing and invoicing:

1. Maintain Accuracy.

The best invoicing practice requires you to know what work has been carried out. You might forget at the end of the month about the work done at the beginning of the month, so you need to efficiently track work as you go along. For freelancers and solopreneurs who sometimes bill per hour, make sure you use time-tracking software to keep a tab on work completed. Use time-management platforms to maintain accuracy in your tasks.

2. Decide Invoice Frequency.

It is obvious that invoices are sent more frequently for products as opposed to services. You can crack a new deal with different clients but make sure to adhere to invoicing terms to maintain uniformity. Moreover, cash flow is important for any business and hence we recommend not to keep too much time between invoices. Once or twice a month is the advisable time difference. Make sure to send the first invoice as soon as the work is done and you have set it. Sending an invoice long after the work was done will interrupt with the cash flow and may cause billing issues for your clients or vendors.

3. Accepted Payment Methods.

As again we would like to remind that the more easy and convenient you keep payment options, the more likely you would get paid fast. You can accept from a range of payment options such as credit card to PayPal and other online channels.

4. Never Miss The “Payment Due By” Date.

Never leave it up to the chance when it comes to payment, hence, let your customers know about payment within, say, 14 days or Net 30 or Net 90. Additionally, never miss to include an actual payment due date on the invoice. This will conveniently let a customer know and avoid any confusion about when you are expecting payment. For payment overdue, you can either charge a late fee, or even more effective, offer a discount for early payment.

Read about “Pros & Cons Of Using ‘Due Upon Receipt’ Method For Invoice Payment Terms” by clicking here.

5. Create Professional-Looking Invoices.

In order for your clients to take your business service seriously, you need professional-looking invoices. Make sure that they include all the relevant information and are clearly quoted. Using the free invoice generator is the easiest way to not only make sure that your invoices are looking perfect but also you can customize it.

6. Personalize Invoices.

Large companies have many departments and dedicated resources wherein there are chances that the concerned person might change or not aware from whom they have received invoices. It is better to make your acquaintance in the accounting department. Since the person now “knows” you, your invoice is personalized and get first place attention when they receive it.

Summary:

Just download the online invoicing app for the respective platform i.e, iOS, Android, MacOS or Windows. Enter details of customers, vendors, stock, etc. Define buy/sell price, etc as per your requirements and start sending quick and easy online invoices.

Manage multiple businesses
Quickly import, export, print, and sync
Create and manage your own custom settings
Manage multiple payment options
Precise insights & reporting capabilities

Online invoicing makes good business sense and with Moon Invoice it sounds even more intelligent.

Clients expectation never ends. Hence, at such short notice, Moon Invoice app can come handy with its multi-purpose features and functionality to efficiently eliminate any delays or barriers in sending online invoice. Moreover, it’s seamless payment operationality builds trust amongst clients to use the services again and again. With online invoicing from Moon Invoice, you are guaranteed to subtract payment related issues and enhance invoicing solution.

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.