More often than not, technology has always been more of a boon and its advancement has helped us in many ways. One of the advancements in the technological evolution point of view is that we all can be relieved while implying the thought of invoices or rather paper invoices.

Gone are the days of the time-consuming and costly way of sending paper invoices; with the introduction of easy-to-use and convenient online invoicing tool. That is the definitive advancements that drive technology more and more attractive and making it more addictive for us to have a total usage of it in every sector.

An estimated 500 billion electronic invoices zoom across the globe every year already. According to researchers, the e-invoicing market is growing at a rate of between 2-3 percent every year. As the trend is constantly shifting towards e-invoicing and people are getting more adaptive to it, let’s see what makes e-invoicing so appealing:

Authority

Government and regional authority across the world have agreed upon e-invoicing being more advantageous to all segments of business and is urging more usage of the same. Few of the governments such as from U.S and Europe, even announced that the year 2018 should be considered as a deadline to move to e-invoicing. An urge from the other authorities is also observed to take part in this invoicing system transformation industry as it is fast, secure, reliable and most importantly allowing business and other services to get their funds on the same day. Bringing such changes which benefit businesses in both money and time, is the move that makes business in being more effective and better, says one study.

Benefits For Businesses

Because of the intrinsic simplicity of e-invoicing, most companies are in absolute comfort in welcoming this solution. The immersive solution that this platform offers the benefits of allowing the multiple payment solutions to their clients takes away any arguable point from the conversation. Moreover, they can send and receive payments from all around the world and even transact money in their local currency if its an international client. The other financial salient feature which companies cannot neglect is that they do not have to hire an accountant or a bookkeeper to manage their invoices and do the necessary filing for it.

Business Analytics

E-invoicing tools provide immaculate data analysis of your business. If used properly and at its optimum level, it gives you every small but crucial detail and insights of your business and of course, you can have the real-time preview of your business performance. Multi-purpose features can give readily available information such as past due to invoices, purchase order, outstanding payment, expense tracker, etc. All-in-all an invoicing tool could easily replace a small team otherwise required by a business entity in order to manage all the tasks related to invoicing.

On The Go Solutions

Eliminating the need for being physically present in the office, is the humongous benefit of e-invoicing. Mobile invoicing and its related apps implications have truly made invoicing industry on the go. The opportunity to send and receive invoices from around the globe has also expedited the process of getting paid and funds on time which is quite crucial for startups and small & medium enterprise.

Efficient

If your business is on the verge of growing hence, you must have to manage your time efficiently with being cost effective as well simultaneously. Managing invoices on your own and looking through the old ones in the tax season, could be a tedious job and will definitely take up a lot of your precious time. However, with e-invoicing, you have everything in one place. From old invoices to new ones, from the invoices that are due soon to upcoming or recurring invoices, everything you can manage merely at the few taps of your finger.

Conclusion

The future of e-invoicing includes more aesthetic, holistic and customized services for buyers and suppliers. However, if all the industry players could rise to the obstacles then a universally crafted solution comprising of automated, secure, reliable and cost-effective practices could be established that will strengthen economies throughout the world.

Moon Invoice, a simple and easy online invoicing platform can streamline your entire expense management process with its ‘Expense Tracking’ feature. Also, other features such as billing, payment, notifications, reports, time tracking, sync and many more seem to be the functions will help you in performing business analytics and much more.

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.