It might come as a surprise but still most of the business house whether small or big performs the invoice reporting in Excel. Well, come to think of it, what could be the reason for enterprises to still stick with handling manual invoicing that excel makes only concludes to reason and that is because it is possible – not efficient – but possible. However, it does seem absolutely non-productive for enterprises to use and depend upon an offline way to perform their reporting.

Although a lot of companies have started to realize the potential of the online invoicing application, there’s often a disconnect between what’s provided and what customers actually need to initiate and be done with their monthly review and payment process. Many have welcomed and adapted to this transition of the flexible digital model but couldn’t fight for those who have made their mind redundant with the age-old notion that they are “used to”.

For your customers, valuable resources such as time, money and effort are spent ‘to make numbers work’. Think of the following situation wherein, a customer has thousands of wireless and hundreds of wireline accounts. Based on your existing invoicing portal, they’ll be extracting data from varying systems with varying outputs and then formulating it into a comparable format. That’s when the conventional and trustworthy excel comes into the picture. Most of us are aware of how to view and use it – making it the obvious default tool. An unexpected result is also that some of your largest customers are manually transferring usage and charge fees from their paper invoices into a spreadsheet. Then comes the review and approval stage of the cycle which distinguishes in terms of scanned documents, to emails, to physically getting signature approvals from all required stakeholders. Hence, it also becomes lucrative to look out for best online invoice payments.

What is the outcome? Can it be rated as a good system? Of course not. But until they have a substantial and better system in place, this tried and tested process will take away days of productivity. The manual cycle also gets pumped up with the custom invoicing, custom reports and custom delivery option which still outreaches the spread of manual cycle. It has been observed that the billing department is spending more than 50% of their time in tracking data just to deliver and fulfill the custom requests. The process will drastically be elongated upon needing to process the repeatable report. Small business billing app can help you with recurring billing as well as reminding you about the payment due for invoices.

A cloud-based invoicing solution such as “Moon Invoice”, can help you optimize your business process and all of your accounting processes and moreover, it also benefits you in multifarious ways. Following are the immediate ways a business can get benefited from Moon Invoice and could possibly avoid a financial backlog.

Schedule invoicing
Direct invoicing
Invoice any time, anywhere
Organized invoicing system
Ease cash flow management
Manage multiple businesses
Quickly import, export, print, and sync
Create and manage your own custom settings
Manage multiple payment options and many more…

Wrapping Up:

To have all this feature which will help you to avoid errors might sound expensive, but in reality, it is not. The online invoicing application from Moon Invoice comes with a 7 Days free trial period to give you a first-hand operational experience and functionality feel of the app. So, we do not see any reasons for you to hold back from giving this much-awaited momentum to your business.

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.