Table of Contents

For the owner of a start-up company, riding the wave of fast growth can be an exhilarating experience. Rapid growth means more challenges and increased expenses in various quarters might throw a spanner in your works unless managed effectively. Identifying the right Expense Management system can be a life saver for your business in this scenario.

The following costs are a few deadly speed breakers for a fast-growing business:

Fulfilling each and every customer order can be very demanding and involves a lot of costs. The solution here is to outsource the same to the right third party providers. The key however, is to thoroughly vet and identify the right partner.
It is imperative to use a free invoice software like Moon Invoice to keep tabs on, send invoices to your partners and manage cash flow.
A fast-growing business can attract outstanding debts like a magnet. Avoid these debt costs by offering discounts, price reductions or even upfront payments to reduce high overheads.
Moon Invoice Pro App is the best invoice app that gives you the list of outstanding and overdue payment details at your fingertips.
One unsatisfied customer can translate to losing 8 new customers. Customer service cost is one area that you can go easy, as new customers mean more business.
The holy grail of any sales and marketing professional – customer conversion. Your sales and promotional expenses should not only generate the buzz but should result in increasing your pool of loyal customers.

Moon Invoice aids in managing customers, vendors, payments and time logs.

For a successful running of a business in India, it is very important to comply to various regulatory bodies like SEBI, PFRDA, Revenue and Taxation, Labour welfare etc. It is easy to lose track of these compliances and filings when you are experiencing rapid growth. This might lead to getting knocked down badly when one of these bodies catch up with you for non-compliance with a hefty fine or ban.
It is vital to use Finance management systems that generate reports on recurrent expenses and taxes so that you don’t miss out on any.

Treading the right path with the right partner

The ultimate dream of any entrepreneur is to own a rapidly growing, successful business. To ensure that, you need to have systems and checkpoints in place.
Identifying the best Finance Management system, using technology aids like best time tracking app or best Invoice app or even free invoice software will contribute incredibly to the ease of running your business.
Moon Invoice app by Moon Technolabs is one of the best Invoice Management Apps and doesn’t require any prior accounting or technical knowledge.

Download it today for a free trial and you will never go back to anything else!

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.