Does the word ‘Startup’ ring a bell to your mind? Yes, more often than not they are called upon to look for their failure to survive the competition of the market. Of course, few penned down reasons to support this is lack of research in the new product and respective target audience for the same, marketing or sales strategy, improper expense management or not able to balance the cash flow for the business, etc.

Money seems to be a solution but more importantly, the habits to handle finances can actually play a very important role in either the success or failure of a venture. Hence, in this blog post, we bring you some of the insights that could help to bring down the expenses and help you maintain healthy cash flow.

1) Erase Unnecessary Expense

Life’s biggest hacks are mostly underlying in simple things. Bring down your expenses by shutting down the power supply after the office hours. Not only that but you could try to switch off or unplug office systems and appliances. A simple and yet effective way to save money depending upon how much of it was going down the drain.

2) Keep Checking Inventory

Inventory Management Software can prove to be a helping hand in pinning down the list of your stock to better keep your business in shape. Tracking inventory from time to time is essential for any business as it helps you in analyzing and stopping you from buying too much of what you really don’t need.

3) Go For Automation

It is advisable to not limit the business to manual way of doing things while the same can be achieved in lesser time with automating the process with tools and techniques. For e.g, if you need to send a bill to the client every month, it is better to opt for a billing tool with recurring billing facility.

4) Use Freelancer & Contract

As long as your company undertakes a well-enforced contract that can take care of both the ends will do the job. Moreover, to freelancers or contract based workers you do not need to provide benefits, insurance, leaves, etc you just need to pay them for completed work and avoid any other additional cost to slow your business down.

5) Go-green: Stop Paper Usage

Do not clutter your mail room. Let that space be occupied with digital solutions and systems. You can begin by eliminating the paper or physical document deliveries. Start opting for the best cloud-based billing/invoicing app to keep your financial data organized and secured. Especially, this digital solution is much cheaper than running your company with paper, etc.

6) Keep Your Business & Finance Account Separate

It is never going to end well if you are mixing your personal finances with business one. It is going to jeopardize the entire business operation. Maintaining the finances individually will help you to account for profits and expenses in an organized fashion. Go with a promising small business billing app.

All-In-One Solution

Moon Invoice, a simple and easy online invoicing app 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.

Few of the ‘Expense Tracking’ features at a glance are:- Track Expense, Categorize Expense, Record Expense, Know Where You Spent More & Hassle-free Tax.

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
Available in all platforms such as iOS, Android, MacOS, and Windows.
Get 30 Days Free Trial.

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.