Online invoice generation platforms have made lives a lot easier for accountants and auditors. It is a boon for entrepreneurs who need a solid support system for an accurate system. But what else is invoicing used for? Read on to find out;

Invoicing is a process that helps businesses keep track of all their transactions in a systematic and orderly way. It is a bill or receipt that you send to the vendors stating the list of purchases and the amount that is payable for these equivalent services. With an invoice, you are now sure of exactly how much money comes in and goes out of your organization. This becomes especially crucial when you are calculating the profits and losses at the end of the financial year. Here are some other benefits of online invoices that you should know about in case you are thinking of investing in one;

Simple and User-Friendly

Invoice platforms have an interface that is simple, clutter-free, and extremely easy to handle. You don’t need any extra technical skills to work on these platforms. Basic knowledge of computer and accounting knowledge is enough to get you going. Also, you don’t have to do anything manually here as all its features are automated.

You can set up recurring payment plans for regular clients, get regular updates and receive notifications about the payments that are due. It also saves you a lot of money that you otherwise would have spent on hiring professionals for the job.

Fast and Reliable

Invoicing systems are usually extremely reliable and time effective when it comes to generating new bills and calculating the payments that you have to receive. What earlier took hours, now takes but a few minutes. You can save client details, maintain extensive accounts and records about the big important orders and do a lot more here with relative ease. Also, most invoice platforms come with dependable customer support that is there to support you in case of any glitches. Read through the reviews and ratings to know more about the best online invoice applications out there that you can use as per your comfort app platforms such as: iOS, macOS, Android, Windows and Web.

Easily Accessible and Intuitive

Most invoicing platforms come with a cloud storage system that is optimized for mobile devices. This means that you can now access your invoices and get updates anytime, anywhere. It saves you a lot of time and trouble, reduces the amount of paperwork and is a far eco-friendlier process as well. And the fact that all your transactions are encrypted and well-protected adds on to the benefits of online invoices.

Secure and Efficient

With online invoicing, you are also saving on taxes. Now you might ask how to save tax with an online invoice software. Well, we have the answer to that. Most invoicing platforms have updated their systems in accordance with the new GST taxing rules that were recently introduced, this means that you don’t have to pay for the multiple taxes that were chargeable on each section of the supply chain.

Instead, there will be just one standard tax that will compensate for all these additional taxes. This saves you a lot of hassles, makes life easier for the audit officer and also ensures that you have all the records systematically arranged.

Establishes Brand Identity

When you send out an invoice electronically, you usually have to add the company’s name and logo as your identifier. This increases your web visibility and makes you more noticeable among your clients. You can now have your own brand and reputation in the market that is associated with a name or an image.

You can even add customized and personalized messages and greetings at the end of your invoices for a more informal and friendly touch. This helps you establish better trade relations with your vendors and build a sense of trust and reliance with your contacts. Some online invoicing platforms also offer users the choice of incorporating multiple currency options and languages that give your brand a truly international appeal and flair.

The Bottom Line

Moon Invoice is a cloud-based platform that can be said to be the best online invoicing application that you can get your hands on. It is an easy, convenient and compatible choice for all business ventures and a great investment for freelancers as well. Also if you are going to start your business or want to expand your business then it’s mandatory to create projection sales to get the success with good ROI.

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.