Most of the time of an entrepreneur or business owner can be accounted behind sending invoices all day long if they have not optimized their invoicing and billing process. However, most of them fail to take advantage that can help them pay faster. On the contrary, there are many customers or vendors who would always be late in making a payment but that shouldn’t stop a keen business person to not streamline the billing process and encourage customers to pay on time so as for you to be on top of your cash flow. We all know that cash flow is the king when it comes to the growth and success of your business. If due to some constraint, there is also an option of offline invoice software for business owners which they can use it even while away from office or work.

Without waiting for further ado, let’s check some of the amazing ways you can make you invoices more effective.

Send your invoices once the job is finished

It is a good practice to send invoices straightaway as soon as the work is completed. Sending out invoices quickly while the services are still fresh in your customer’s mind prompts them to make payment as soon as possible. The online invoicing application can be of great help here. These apps mostly provide multiple payment option/methods to make instant payment.

Online invoices

If you are still obsessed with using the conventional method to create manual invoices then this is the time to switch over to an online expense tracker. It is also favored amongst customers, vendors and even clients. Online invoice maker streamlines the billing process, resulting in faster payments proving good for your business.

Provide details

An invoice can provide complete insight into the trade along with the services rendered if only it provides complete details. The offline invoice software allows to create invoices with an itemized description of task/product/services, etc. that is offered. It is best to know how to much to include in the invoice details section but there is also no downside to it for providing little extra information.

Shorten payment terms

It is best to keep the clear and easy language but that does not mean that it doesn’t have to be effective and stricter. Yes, however, keeping them short for say like 14 days than the usual 30-days terms. Though you would come across a few of them who would make you wait until the last moment and at times beyond. In times like these, your stringent payment terms are going to rescue your business from going out of cash.

Offer payment option

In this day and age, cash is not the king. The more you’ll offer digital forms of payment to customers, the more you are likely to get paid faster. It has been observed that online invoice application gets you paid 2x times faster with the best professional invoice for payments.

A reminding system

A small reminder before an invoice payment is due is the best little deed you can do for your business as you can’t rely on calling, texting or emailing. You can easily put an automatic payment reminder with the top free invoice generator – Moon Invoice.

About Us:

Moon Invoice has come up with the comprehensive online accounting & billing solution that connects small businesses to their accountants, Bookkeepers, banks and other online business software. Over the years, Moon Invoice is successfully able to pave the way for our customers to directly connect with their customers and suppliers or vendors so as to carry all the invoicing related business operations seamlessly.

Following are few of the handy advantages of Moon Invoice:

Manage Invoices & Credit Notes effortlessly
Administer seamlessly Estimates & Purchase Order
Smart Filter option with 22 Professional PDF templates
Save time with auto invoicing numbering and avoid any critical financial data entry error with iCloud Sync feature
Manage Separate Customers & Vendors list
Track expense and payments
Add unlimited companies
Smart Quarter and Summary view
Create custom invoices with the option to add 2 different signatures, name, title, and date
One touch Backup & restore option with TouchID Protection
Customize PDF layouts, alignments, image, color and format

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.