Operating an agency without any time tracking software is not an ideal situation. Many companies’ entire profitability is based on the total number of hours billed to the clients or customers. In order to attain this, employees need to keep an accurate time track of each task belonging to their ongoing project. Some agencies also do not believe in time tracking due to the following reasons:

Time tracking is not a part of their working culture
Due to less number of employees working on a project
Time tracking? Huh!! What for? What’s the use of it?

Well, we have listed a few of the benefits of using an online invoicing application that can help you to leverage in time tracking for agencies:

Clear Operation Visibility

Time tracking brings transparency in the business operation and process. It allows managers and management to keep an eye on the current development of the overall project as well as on the team members productivity. It could also pinpoint the non-performing process of the agency so as to optimize it.

Improve Quotes & Estimates

Providing accurate quotes for the work will land you in perfect harmony with your customers to continue a long lasting business relationship. By generating proper record time for each task, you will be able to create accurate quotes and estimates.

Correct Billing For Clients

It wouldn’t be hard for employees to give you a rough amount of time that they have spent on a particular project, however, an accurate is much more needed in order to provide correct billing to the clients. Calculating exact time logs for the time you spent on a task will help you to get paid for every billable minute documented.

Be Updated With Project Status

Manually keeping a note will be hard to keep as several employees working on multiple projects at a time. When you use a time tracking tool, your job becomes easier to check the status of all tasks at a glance. With the best invoice estimate app, you can even narrow it down to a specific task or job or department in your agency.

Reporting Accurate Hours

Keeping a track of accurate time logs is necessary for your agency for correct reporting and compliance purposes. This can be a tedious thing to do for every week, month so on and so forth. Hence, a free invoice generator can help you to pull up time tracking report for your desired period of any given project or task.

Rewarding Time Tracking

Many employees think that tracking each time log of their activity for the project or task will land them in trouble however, the other way round is true. Not only it helps managers to keep a track time to ensure whether the project was finished under the specific timeline but also helps in recognizing the potential in an employee who finished his or her tasks quite early than the required allocated time. Hence, rewarding or incentives can be offered for the same.

Look Professional

Agencies usually get clients requests every now and then asking about the project status for which any regular agency depends either upon manual time tracking or not so modernly equipped tools which result in discrepancy at the end. Using the best small business billing app you can avoid this conundrum and present accurate time tracking status to your clients for the project or task.

Concluding Note:

‘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”.

Moon Invoice offers you multiple payment options along with multi-currency support. With Moon Invoice you can work from anywhere by downloading apps available for all platforms, i.e, iOS, Mac OS X, Android, and Windows. In addition to this, the Moon Invoice app also helps your business with Import/Export & Print and Mobile & Sync.

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.