As such it is hard to understand when the two sides of a discussion are not on the same page and it becomes really complex when you top it off with a communication gap. The above statement holds the true reason for most of the startups or small businesses failing in their respective industry. Because much of the above drama leads between clients, customers, suppliers, and vendors on a regular basis for the services rendered from either side. Mostly all seems fine in the beginning and both the parties involved to do the trade as early as possible (may or may not go through all the terms) – a classic rush observed among startups and small business owners as they are much more focused on growing business by acquiring more clients and securing work.

Even though everything seems to be in place, what goes unnoticed is the correlation between your AR problems or your customer’s AP misery? Usually, the two sides of the unending discussion come to a halt at respective points from each side. For e.g, you would be wondering why your customer is not making payment as per the invoice terms and the customer would be held up in thinking why can’t be sending invoices matching our payment schedule, etc. And thus, leaving the discussion then and there along with the trust in the online invoicing system. In such a scenario, the best step for them is to go back to the tedious and old manual invoicing process. Most customers think that it is the best way forward, secure and trustworthy but in reality, all these points seem valid only due to the reason that they are used to the manual process from a very long time. However, in practicality, the manual invoicing process is time-consuming, error-prone and complex. Moreover, challenges such as manual dunning, untimely delivery of invoices and many other such obstacles can distort your business’ cash flow system.

Both sides of the AR/AP houses have ensured to get benefitted from implementing technology to bring up their respective month end process but little has been done to drive efficiency across a complete network which includes both of their systems.

Automation of invoicing and billing process makes E-invoicing a preferred choice as compared to traditional invoicing methods. Small business billing app simplifies the process and requires fewer resources to manage billing & accounting. This leads to faster payments and maintains easy cash flow for the business. Receiving initial payments on time concludes to avoid chasing late payments via phone, emails, etc and sending second invoices with late payment and surcharges. E-invoices eliminates all these situations. Automation also helps in reducing time to correct the mistakes in invoices and are generally more secure against any fraud. Most of these E-invoicing or online invoicing platforms offer robust security with SSL (Secure Sockets Layers) encryption which provides an additional layer of security to the invoices.

Moon Invoice – free invoice generator acts as a catalyst between a supplier/vendor and customer to bridge a gap with the cutting-edge features, functionalities and of course payment methods and terms which are suitable for both the parties.

Want to know about invoice payment and terms that will get you paid 2x faster than click here

Concluding Note:

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. May it be iOS, MacOS, Android, Windows, and Web Moon Invoice works brilliantly and smoothly on any platform maintaining the uniformity while simultaneously also staying productive for you to access anytime-anywhere even while you are on the go.

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.