What Are Recurring Invoices?
Recurring invoices are invoices that are automatically generated and sent at regular intervals — weekly, monthly, quarterly, or on any schedule you define. Instead of manually creating the same invoice every month, you set it up once and let the system handle the rest.
When to Use Recurring Invoices
Recurring invoices are ideal when you have clients who pay the same amount on a regular basis:
- Retainer agreements — monthly retainers for ongoing services
- Subscription services — software, memberships, or access fees
- Ongoing contracts — regular maintenance, hosting, or support
- Rent or lease income — if you lease equipment or space
- Instalment plans — breaking a large project into equal monthly payments
If you find yourself creating the same invoice for the same client more than twice, it’s time to automate it.
Setting Up Recurring Billing
A good recurring invoice setup includes:
1. Define the Basics
- Client — who you’re billing
- Amount — the recurring total (including line items)
- Frequency — how often (weekly, monthly, quarterly, annually)
- Start date — when the first invoice should go out
- End date (optional) — when the recurring cycle should stop
2. Choose Your Automation Level
- Auto-send — invoices are created and emailed automatically
- Auto-create as draft — invoices are created but wait for your review before sending
Auto-send is perfect for straightforward, fixed-amount billing. Draft mode is better when amounts might vary slightly or you want to add notes before sending.
3. Set Payment Terms
Apply the same payment terms you’d use for one-off invoices. Net 30 is common, but for recurring billing, shorter terms like Net 15 or Due on Receipt often work better since the client expects the invoice.
Best Practices
- Communicate clearly. Let your client know they’ll be receiving recurring invoices. Include the billing schedule in your contract or agreement.
- Send a reminder before the first one. A quick heads-up like “Starting next month, you’ll receive a monthly invoice for your retainer” sets expectations.
- Review periodically. Check your recurring invoices every quarter. Are the amounts still correct? Is the client still active? Has the scope changed?
- Handle price changes proactively. If you’re raising your rates, notify the client before updating the recurring invoice. Don’t let them discover a price increase on an invoice.
- Keep records of the agreement. Link your recurring invoice to the contract or proposal that authorised it.
Stop Forgetting to Invoice
The biggest benefit of recurring invoices is consistency. You’ll never forget to bill a client, never send an invoice late, and never lose revenue because something slipped through the cracks.
In Fastbooks, setting up a recurring invoice takes less than a minute. Pick the client, set the amount, choose the frequency, and you’re done. Each invoice gets a unique number, is tracked in your books, and can include automatic payment reminders.