Many developed and developing economies have realized the benefits and impact of adopting e-invoicing & billing system into their accounting process. While some nations have adopted or are in the process whereas others are thinking to implement and analyzing keeping the decision pending. For e.g, talking about India – GST council is examining the legal and technical aspects of e-invoice whereas Australia’s 730,000 small business owners are relieved with the ATO legislation to implement Single Touch Payroll (STP) effective from 1st July. Some of us fancy change and others don’t but between this indifference, one cannot neglect the fact that objectively changing the current manual system to an online invoicing app can add definite value to process workflow as well as boost productivity within an organization.

These business entrepreneurs seem to be equally excited and stressed at the same time about the potential of technology and how to implement and integrate it with their existing system in place. Bifurcation of their concerns about the adoption of digital tools in their business can be classified into categories of lack of understanding, resourcing, time and trust. A staggering 65% of business owners said they’d support and welcome any changes that will help to work efficiently with a further 40% agreeing to the need of bringing in digital tools to streamline the billing and invoicing process.

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”.

Power of innovation drives the technology in every front. Accelerating your workflow through automation can pave the way to free up your time so that you can focus on other important areas of business. Automating your backend billing tasks not only helps your clients feel a smoother drive of the tool but also enhances the onboarding experience. One can start by documenting their process flow or can do a visual workflow to see exactly what steps are included in your billing process and who is assigned a specific job role for the same. This step is recommended because updating your process is of utmost importance before you update the tools. You’ll also need to re-calculate the time it takes to finish a step. Since there is no one-size-fits-all solution as every firm is different and has its own purpose and need.

If you are unsure of how to check and reach to a conclusion in deciding which kind of invoice generator is best for your company then it is in the good interest of business to opt for the best small business billing app such as Moon Invoice.

Summary:

Moon Invoice, a simple and easy online invoicing platform can streamline your entire expense management process with its ‘Expense Tracking’ feature. The feature can help you optimize, organize and can help you to take necessary action if your monthly/yearly expenses are heavily accountable.

Additionally, Moon Invoice lets your business be on top of the competition with Instant Invoicing & Billing, an Easy track of Payment & Notifications, Accurate Insights & Reporting Data. Few amazing add-ons with Moon Invoice are that you can add & “Manage Multiple Businesses”, “22+ Professional PDF Templates”, “Import/Export & Print Utility” and data backup “iCloud sync & MoonSync support”.

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.