Everything You Need to Know About Recurring Invoices
What are recurring invoices?
A recurring invoice is one that isissued to the same customer on a regular basis and contains the same invoice details each time.
Setting up a recurring invoice,which allows your bills to be sent to your clients automatically and without effort, is way more efficient. That's why it's more common than other types of invoices.
If you're selling online, it's highly likely that you have customers who will buy from you repeatedly. Recurring invoices are a great way to automate this process.
Setting up a recurring invoice is so easy. All you need to do is add your customer's email address and they'll receive an invoice automatically. All the details of your products and their prices are already on the invoice, so there's no need to worry about entering this information again. You can then choose whether to send an email notification to the customer, including their order details or just send them a one-time email confirming their order.
The benefits of a recurring invoice are many:
1. It's convenient for your customers - They don't have to remember to send a payment; they just need to click on the reminder, and you'll be notified by email or SMS.
2. It cuts down on administrative overhead - If you've got recurring invoices set up, it's a lot easier to go through your client list and send reminders to customers who haven't paid yet. You can also set up automatic payments so all you have to do is check your bank account balance each month and send out the payments, hassle-free.
3. It's useful for marketing purposes - Recurring invoices can become attractive leads for your business. For example, if you're charging customers for a monthly service and you run out of time before the next billing cycle starts (often called "overdue"), it's easy for them to sign up for that service again by paying their outstanding amount using a recurring invoice. This way,they're not wasting money on something that they may not need in the future (that service will just be added to their account).
Who is a good candidate for recurring invoices?
If you run a subscription-based service or produce an invoice for customers on a regular basis, consider setting up recurring invoices if you haven’t done so already. This will save you time and provide your customers with a number of useful features. Additionally, it can increase your income.
Other businesses that offer recurring invoices are those that provide;
· Marketing services
· Graphic designers
· consultancy
They often ask customers to set up recurring payments. Some even accept credit cards or M-PESA on file for the customer to use for their next billing cycle.
Get started with Lipana
Lipana allows you to easily manage your recurring billing plans and unique one-off charges. Invoices can be generated at a customizable interval based on the billing plan, and one-time charges are individually accounted for as well. The simple admin panel makes updating records a breeze and Lipana’s intuitive interface gives you immediate access to the information you need in real-time, allowing you to always have anaccurate understanding of your finances. To all small business owners out there: sign up today!