Why should you use recurring invoicing?

Need advice? We can help.Get in touch today

A recurring invoice is an invoice that you send to the same customer at regular intervals, which has the same information on it every time. If you set your invoices to automatically recurring, there’s no need to schedule reminders for yourself or spend time copying an invoice again. Instead, your invoicing software will take care of it all for you. 

If you have customers you have ongoing contracts with or frequently invoice with the same order each time. Recurring invoices could be helpful for you. The types of businesses that often work with recurring invoices include:

  • Rental companies
  • Online software businesses
  • Suppliers
  • Subscription-based services.

You can make recurring invoices for both services and products you provide for customers.

What do I stand to gain from setting up recurring invoices?

Time saved

It may only be one minute to create an invoice from scratch, but the effort adds up over time. And time can cost you money. Every invoice you have to write, track, and follow up on is time that you could spend on another aspect of your business.

By setting up recurring invoices, you’ll be able to streamline your invoicing and have more time to focus on other areas of your business, such as marketing and sales.

Fewer invoicing mistakes

Sometimes, invoicing can be complicated. For example, there may be times when you provide many different products and services to a customer every month. 

If you provide office supplies, your invoice may contain many different products, each with its own price and amounts. Therefore, every item you enter needs to be checked carefully.

If you invoice for the same things every month, you’ll only have to check the invoice the first time you create it carefully. Once you know, it’s correct, and it’s good to go until the customer’s order changes.

Improved cash flow

You can generate a steadier stream of monthly income by using automated invoicing. Sending recurring invoices will improve your cash flow and guarantee a basic monthly income.

If you know that your customers each receive a monthly invoice of £200 for your services, it’s easier to work out how much you expect to earn in the coming months. It’s also easier to make projections about your cash flow. You can then use these projections to inform your business decisions.

Improved customer relationships

Setting up recurring invoices can improve your credibility and make you come across as more professional. If your invoices are set to recurring, you’ll never find that you send your invoice late or miss a payment. When working with a customer for a long time, always invoicing on time will help to demonstrate you’re operating an organised and professional business.

Moreover, periodically invoicing your products or services will help your client think of you as part of their extended team. If you invoice on the first of every month for your security services, for example, your client will naturally consider you when they calculate their yearly budget. On the other hand, if you invoice inconsistently, they may move on to a competitor who seems more reliable and whose costs can be easily predicted.

Faster customer payments

If you set a recurring invoice to be sent on the first of every month, this will become the norm for your customer. However, if the invoice is always going to be received on the same day, your customer will get used to making a payment at the same time too.

Essentially, recurring invoices are all about making a routine. And once a routine is in place, it’s less likely to be broken. With recurring invoices, you should therefore find that you have fewer missed payments, saving you both time and awkward conversations.

We can help set up recurring invoicing in your accounting software. And if you’re not using software, let’s have a conversation so we can show you how much time and money you could save by computerising your accounts!

Useful information for Why should you use recurring invoicing?

Limited CompaniesSole Traders & Partnerships

For your business, a new government brings about a period of uncertainty. Consider how you can prepare to manage this transition and succeed…

Read more
Limited Companies

From April 2026, reporting and paying Income Tax and Class 1A NICs on benefits-in-kind will be mandatory through payroll software.

Read more
IndividualsSole Traders & Partnerships

From 6 April 2026, people with yearly trading/property income over £50,000 must move to a digital system to record and declare information.

Read more
Limited CompaniesSole Traders & Partnerships

A director can decide how much and by what means they extract the profit from their business by balancing salary and dividends.

Read more

I am a...