Recurring invoices: an overview
TaxDome allows you to have invoices automatically generated, request payment authorization from your clients, and get paid automatically at routine intervals. This way, it's easy to provide regular services to repeat clients. Learn all the basics of setting up recurring invoices on TaxDome.
Tip: Download the Setting up Automatic Regular Payments on TaxDome checklist to track your progress
Covered here:
- Recurring invoices, explained
- Three things to check before creating a recurring invoice
- Three questions to ask yourself when preparing a recurring invoice
- Where to find the recurring invoice once it's sent
Recurring invoices, explained
When you provide the same services to the same clients at specified intervals, it can be useful to schedule their payments. With TaxDome, you can use recurring invoices for that.
Recurring invoices is an automatic process of creating invoices and debiting the client's account for the same amount on a given schedule.
Some examples:
- You perform the same services on a regular basis (e.g. payroll or bookkeeping) and with recurring invoices, your clients pay for your services the same way they pay for a subscription. Money is automatically withdrawn from their bank account.
- You perform the same services on a regular basis (e.g. payroll or bookkeeping) and with recurring invoices, you can have invoices generated and sent to the client automatically at regular intervals.
- You offer advisory services (e.g. tax planning) and with recurring invoices, you can split a payment into installments.
So, unlike the one-time invoices that you have to create again and again, recurring invoices are created and sent to your clients automatically. Moreover, you can request payment authorization from your clients once and get paid automatically for each invoice, with no further action needed either from you or the client.
Here's what the signing process looks like for the client:
Three things to check before creating a recurring invoice
Here are some important things that you should keep in mind before creating your first recurring invoice.
1. For automatic payments, make sure Stripe is your default payment provider. Currently, we only support Stripe for automatic payments.
2. For cheaper transactions, allow your clients to pay via bank debit. To do so, turn on your preferred payment method in Stripe, then allow bank debits on TaxDome.
3. Before sending the recurring invoice with payment authorization, check the signatory authority in account settings. To make the recurring invoice active, only one contact needs to add payment details and accept it. So, make sure that signatory authority is disabled for the contacts that are not allowed to sign (e,g, children).
Three questions to ask yourself when preparing a recurring invoice
Here are some important questions that you should ask yourself when preparing your recurring invoice to make the process go smoother:
- How often do I want to receive payments and how many invoices should be sent within the recurring process? Then select the appropriate answer in recurrence settings.
- Do I want my invoices to be paid automatically or do I just need them to be sent according to the schedule? Then select the appropriate payment authorization type.
- How do I want to allow my clients to pay the invoices issued within the recurring process? Then select the appropriate payment method for them.
Where to find the recurring invoice once it's sent
Once the recurring invoice is created, you can find it in the Recurring invoices tab of the Invoices section. From here you can:
- View the status of the recurring invoice (whether it was accepted, paid on time, etc.)
- Find out the balance of an active invoice
- Make changes to the recurring process, e.g., change the number of recurrences, the date, the total and the number of the planned invoices
