Freelancers have chosen enviable lives of independence, personal success thresholds, untethered working desks and… Payment chasing? While the latter may seem jestful, it’s more true than many of us self-starting moguls would care to admit. And while there is no one-size-pays-all solution to poor client response times and our own misgivings about what’s really going on with “... the accounting department,” we can take actionable steps as freelancers to get paid on time, every time. Like pros.
Recurring invoices automate the regular billing of established clients with whom your work continues or a contract dictates will be billed repeatedly (the best, right). Managing your finances in the most hands-free way possible means your work flows smoother, your peace of mind is peace-ier, and more payments can be made on-time by clients.
This comprehensive guide explains what recurring invoices are, who should use them, and how to set them up.
What are Recurring Invoices?
A recurring invoice is a type of invoice. Phew!
Recurring invoices are set up one time and then automatically sent at regular intervals to bill clients for on-going services. If you’re a freelancer who bills the same client consistently then recurring invoices might just be your pro-billing powerhouse.
Recurring invoices from freelancers make it easier for clients to pay their freelancers, cutting down on extra communication, sending reminders and 3rd-party contact with the phantom accounting teams we’re so used to hearing about in guest Slack channels.
Key Features of Recurring Invoices:
100% of freelancers need to invoice clients, and many send invoices without needing to register a company. Being independent as we are, we’re unlikely to have our own accounting and billing departments.
Recurring invoices are one of the many tools available to freelancers that help automate and season our impressions to clients. If your invoicing solution lets you issue recurring invoices, you’re in for a few treats:
- Like automated scheduling: This allows you to dictate at what intervals your invoices are sent i.e. every two weeks for 6 months;
- Inarguable consistency: Agree on the first invoice and note to your client that the date of issue, and the invoice itself, will be automated from here;
- And professional appeal: Proactively set up the best billing route with your client from the beginning, and let them know what you can offer from invoicing.
Telling your client from day one the tools you use for invoicing and agreeing on payment method terms isn’t a pain for either party. Proactive guidance from your side shows professionalism and efficiency–no time wasted. Recurring invoices bring consistency from both client and freelancer.
Who Should Use Recurring Invoices?
Freelancers and service providers all over the globe issue invoices on a consistent basis to a wide range of businesses, clients and individuals. Recurring invoices are needed only for those who send the same invoice on a repeat basis e.g. Jonathan invoices Business Co. Inc. every month for €500.
Any individual looking to automate their billing to a client may benefit from recurring invoices. At Xolo, we see recurring invoice solutions working wonders for:
- Freelancers with ongoing projects
- Consultants and advisors
- Subscription-based service providers (like SaaS)
- Maintenance and support services
How Does a Recurring Invoice Work?
Setting up a recurring invoice is equal to automating the repeat billing of a client. If you’re looking to start setting up your own, the roadmap is quite simple:
- Agree on the invoice setup: Determine the billing frequency (weekly, monthly, et cetera) and set up the schedule with your client.
- Generate the invoice: Your invoice solution should automatically generate the invoices based on your predefined schedule.
- Your client is automatically notified: Generally, this is done by email on the day of invoice issuance.
- Invoice is paid: Integrated payment gateways facilitate timely and seamless payments from your clients.
- Invoice is logged: Modern invoicing platforms like Xolo track payments, reminders, and overdue notices and maintain a record of payments–the nitty-gritty.
Top 4 Advantages of Recurring Invoices
Aside from helping yourself to a bit of fresh air when it comes to monthly billing, your clients can enjoy a slew of positive side effects from your recurring invoice issuance. Recurring invoices are:
- Consistent: Providing a steady cash flow, is crucial for budgeting and financial planning.
- Efficient: Reducing administrative workload by automating the invoicing process.
- Reliable: Ensuring timely billing, and reducing the risk of missed payments.
- Professional: Enhancing your professional image by maintaining a regular billing cycle.
We highly recommend the invoicing conversation occur at the beginning stages of your client relationship with as much thoroughness as possible. No one enjoys having to re-discuss payments on either side of the process when the work is done. Get ahead of the game and stay on top of it with recurring invoices.
How to Set Up Recurring Invoices with Xolo Go
Xolo Go simplifies the process of setting up recurring invoices, allowing freelancers to manage their finances without needing to register a company. Here’s a step-by-step guide to setting up recurring payment processing with Xolo Go:
1. Sign up for Xolo Go
2. Create a new recurring invoice
3. Define the billing frequency for your recurring invoices
4. Activate the recurring invoice
| 💡 Your clients will receive the invoices promptly at 3 pm on the scheduled due date. |
5. Monitor and manage payments with Xolo Go’s real-time dashboard
Xolo Go Features for Recurring Invoices
Ensuring that you’re in-the-know is a crucial factor for any freelancer. With Xolo Go, you’ll get a bounty of features to help you stay on top of your invoicing game:
- Automated VAT Calculations: Xolo Go automatically calculates VAT, ensuring your compliance with tax regulations.
- Expense management: Easily manage and reimburse business expenses through the Xolo Go platform.
- Business bank account: Receive payments directly into your business bank account (IBAN) provided by Xolo Go.
- Professional invoice generator: Create and send professional invoices with ease.
Xolo Go enables freelancers to send professional, recurring invoices without the need to establish a company. By leveraging our virtual company, you’ll be able to create and send top-tier invoices, obtain a business bank account, use our own VAT number and customize your invoices as needed.
Recurring invoices are a powerful tool for freelancers looking to streamline their billing process and ensure consistent income.
By automating invoice generation and payment collection, freelancers save time, reduce administrative burden, and enhance their professional image. Xolo Go offers a comprehensive solution for setting up and managing recurring invoices, allowing you to operate efficiently without the need to register a company.
For further reading on invoicing and managing your freelance finances, check out these resources from Xolo:
