What are recurring invoices?

Recurring invoices are billing documents automatically sent to customers on a set schedule—weekly, monthly, quarterly, or annually—without you having to recreate the invoice every time.

So if you bill your favorite client, Shirley, for the same service every month, recurring invoices save you from doing that work manually, every single time. It’s like putting your billing on autopilot—less admin, fewer mistakes, and more time for actual business (or coffee!).

Recurring invoices are especially useful for service providers, membership-based businesses, and eCommerce shops with payment plans. Think: marketing agencies, fitness studios, consultants, or even software companies offering monthly retainers. They help cut down on repetitive tasks while keeping your invoicing consistent.

In this article, we’ll break down how recurring invoices work, how they compare to recurring payments, and how to make your billing process even smoother.

How are recurring invoices different from recurring payments?

You’ve probably come across both terms—and it’s easy to get them mixed up. While they sound similar, there’s a key difference in how they work. Recurring invoices are automatically generated and sent to your customer at regular intervals. The customer then reviews the invoice and chooses how to pay—credit card, ACH, or another method. If you’ve saved a payment method on file, some platforms even let you charge the customer automatically (learn more about card on file payments here).

Recurring payments skip the invoice and manual review step altogether. Instead, the same amount is automatically charged to a default payment method on a set schedule—no additional steps, no client intervention required.

The key difference?

Recurring invoices offer more flexibility and visibility—for both you and your customer—while recurring payments are all about automation and convenience. Why are recurring invoices important for small businesses?

If you’re sending the same invoice over and over again, recurring invoices can save you serious time. They help reduce errors, avoid missed billings, and make your business look more professional. If you don't have one and your business relies on recurring billing, you might risk the following:

Forgetting to send an invoice
Inconsistent revenue
Wasted time duplicating tasks
Frustrated clients

Automating recurring invoices also ensures that invoice information is consistent and accurate for every billing cycle.

By setting up recurring invoices you get to reduce inefficient processes associated with manual billing and look a lot more professional in the process. That means fewer late payments, less time spent chasing customers, and cleaner books.

What industries benefit most from recurring invoices?

Recurring invoices are a game-changer for businesses that bill clients on a regular schedule—but want to give customers the flexibility to review and pay each invoice manually. They're especially useful when totals vary or when tips, discounts, or installment plans are involved. Here are a few industries that typically rely on recurring invoices:

Marketing and creative agencies
Freelancers and consultants
Home cleaning and maintenance services
Fitness and wellness studios (especially when offering flexible packages)
Healthcare and therapy practices
Professional services like accounting or legal firms

If your business also offers installment plans or variable billing, setting up recurring invoices based on split payments can save you a ton of time—and help you avoid the “Wait, did I invoice them yet?” spiral.

How recurring invoices reduce manual data entry

Manually creating invoices is like typing the same email 50 times—it’s slow, error-prone, and a total time suck. Copying client info, payment terms, and line items over and over isn’t just boring, it opens the door to mistakes that can cost you. Automating invoice creation reduces manual tasks and minimizes the need for manual intervention, helping you avoid bottlenecks and improve billing efficiency.

Recurring invoices fix that. Once set up, they pull in the right info automatically—no retyping, no double-checking addresses, no “Oops, wrong amount” moments.

Even better? Some providers don’t just send invoices—they also handle payment collection, sync with your accounting software, automate payment reminders, and support multiple payment methods like credit card and ACH payment. (Hint: That provider is one letter off from Helium!)

Advantages of recurring invoices

Let’s be real—recurring invoices are one of those things you don’t realize you need until you start using them. Then you wonder how you ever lived without them. Here's why they're so useful:

Saves time: You no longer need to create new invoices every cycle
Saves money: When it's saving you time, it's saving you money as well. Recurring invoices help businesses save on administrative costs and improving payment efficiency
Improves cash flow: Regular payments mean better forecasting
Reduces late payments: Automated reminders and payments boost reliability
Enhances customer experience: Clients appreciate consistent and professional billing
Automates and tracks transactions: Recurring invoices streamline the management and recording of financial transactions, improving accuracy and operational efficiency

Disadvantages of recurring invoices

Of course—nothing’s perfect. Recurring invoices come with a few things to keep an eye on:

Risk of overcharging: If you forget to pause or update the invoice
Repetition of errors: A mistake in the template gets repeated
Onus is on the customer: Not all recurring invoices have built-in payment collection, so you may experience some delay due to the fact that the customer will still have to review the bill before paying.

Still, for most businesses, the benefits far outweigh the drawbacks.

How to set up recurring invoices

Now that we've discussed the "what", let's move on to the "how" of things. Setting up recurring invoices makes repeat billing a breeze. Here’s a quick step-by-step summary:

Choose an online invoicing tool that supports recurring invoices
Create a reusable invoice template for your client
Add your client and their payment details
Set your billing schedule
Enable automatic invoices and payments, so the software can send and collect (provided they have this feature) recurring invoices automatically at the chosen intervals
Test the setup with a sample invoice.
Set and get paid

Now let’s break down each step.

1. Choose a platform that supports recurring billing

First things first—make sure your invoicing tool supports recurring invoices (and ideally, recurring payments too). Look for features like automated scheduling, saved payment methods, and reminders.

A good platform handles everything from generating and sending invoices to collecting payments and syncing with your accounting system. Leading invoice automation software integrates with accounts and bank accounts to streamline financial management, making it easier to automate accounts payable workflows and ensure accurate reconciliation.

Bonus points if it supports both credit card and ACH without locking you into monthly fees or long-term contracts.

2. Create a recurring invoice template

Next, set up your invoice template. This should include:

Your business info
Customer details
Payment schedule and terms
Other invoice details pertinent to your business like PO number (purchase order)

A clear description of the recurring service or product This template becomes your master copy for every cycle, so make sure it’s accurate and easy to read.

3. Add client details and payment method

Add your client’s contact info and decide how you want them to pay.

Want to give your client the flexibility to choose how they pay each time? Set up a recurring invoice instead. They’ll get a notice every billing cycle and can pay via the payment of their choice at their convenience.

Prefer to skip the manual customer intervention? Set up recurring payments. Automatically charge the same amount and payment method each cycle.

4. Set your billing schedule

Decide how often you want the invoice to go out—weekly, monthly, quarterly, or custom. Then choose your start and end dates (or let it run indefinitely until paused). Once it’s scheduled, the system will handle the rest like clockwork.

5. Enable automatic reminders and notifications

Avoid the awkward follow-up emails. Turn on automated reminders so your client gets notified when the invoice is sent, due, or (oops) overdue. It’s a simple way to reduce late payments without lifting a finger.

6. Test before going live

Always test the setup with a sample invoice or a test client. This ensures your schedule, formatting, and payment links all work as expected, and allows you to verify that invoices are processed correctly by the system.

7. Set and get paid

Once everything looks good, activate your recurring invoice or payment. That’s it! From here on out, your billing runs itself—leaving you with more time to do more business owner things.

How can you pause or stop recurring invoices?

Most invoicing tools let you control how long and how often your recurring invoices go out. And if they don’t? Well... run. (Kidding. Kind of.) Pausing or stopping a recurring invoice is usually pretty straightforward. If you need to take a break from billing a customer, here’s what to do:

Open your invoicing dashboard
Find the active recurring invoice
Select “Pause,” “Edit,” or “Cancel,” depending on what your tool offers

You can also adjust future billing dates or change the invoice frequency if needed. Just be sure to let your customer know if anything changes—it's good practice and avoids confusion down the road.

What are best practices for recurring invoices?

Speaking of good practices, here are other helpful tips to keep your recurring invoices professional and effective:

Communicate upfront: Let your customer know when and how they’ll be charged
Include invoice descriptions: “Monthly SEO retainer” is more helpful than “Services”
Review your invoices quarterly: Update prices, dates, or descriptions as needed
Streamline invoice approvals: Automate and standardize the invoice approval workflow to reduce manual effort and speed up the invoice process
Include purchase orders when relevant: Ensure accurate invoice matching by comparing invoice data with purchase orders
Send payment reminders automatically: Even with auto-payments enabled, sending payment reminders can prevent surprises and ensure timely payments
Verify bank information: Double-check bank account numbers and routing information to ensure accurate payment processing

How often should I remind customers about recurring invoices?

With automatic invoice reminders, there’s no one-size-fits-all reminder strategy, but a little communication goes a long way—especially when money’s involved. Here’s a simple reminder schedule you can stick to (or better yet, automate):

Before the invoice: Send a heads-up 3–5 days in advance. It’s courteous and keeps things transparent.
On the due date: A gentle nudge if an automatic payment collection isn’t set up.
After the due date: Follow up 1–3 days later, then once a week until it’s paid. Most invoicing platforms (including the good ones) let you automate reminders, so you don’t have to manually chase payments. Definitely worth setting up—your future self will thank you.

Want to take it one step further?

Recurring invoices are a great starting point for saving time and staying consistent—but if you want to simplify even more, recurring payments let you collect fixed payments automatically without having to wait for your client to manually review the invoice and pay. Helcim’s Recurring Payments feature helps you do just that:

Automatically charge saved payment methods
Avoid late payments and reminders
Reduce admin work even further
Automatically retries failed payments

You still stay in control—but your payments come in faster, with less effort.

Final thoughts

Recurring invoices are a great way to simplify and speed up repeat billing—especially when amounts vary or customers want to review charges before paying.

At Helcim, no matter what your payment cadence or billing setup is, there's a payment tool for you.

👉 If you want to fully automate payment collection for repeat purchases with the same amount, Helcim’s Recurring Payments has you covered.

👉 Prefer a one-off end-to-end invoicing solution—from creation to delivery to payment collection? Explore Helcim’s invoicing tool here

Frequently asked questions

Is there a way to automate invoices?

Absolutely. Most invoicing platforms let you automate recurring invoices—from creation to delivery. Set it up once, and the system will handle the rest. With Helcim, you can also securely store payment methods to automatically collect payments when invoices are due. How often should I send reminders for recurring invoices? Send a reminder 3–5 days before the due date, and follow up after if payment hasn’t been received. You can automate these reminders within your invoicing tool.

Can I change a customer’s payment method between recurring invoices?

Yes. Most invoicing platforms allow you to update a customer’s saved payment method mid-way through a billing cycle. Whether they want to switch from ACH to a credit card or need to update an expired card, you can make the change without interrupting the schedule. Just be sure to confirm the update with your customer.

Are there any fees for integrating recurring invoices with accounting software?

Some platforms charge extra for integrations, but Helcim doesn’t. You can sync your recurring invoices with QuickBooks Online and Xero for free—no surprise fees, just seamless reconciliation and cleaner books.

What kinds of businesses are a good fit for recurring invoices and recurring payments?

Recurring invoices work well for businesses that:

Want to give customers a chance to review before paying
Have different checkout options such as tips or discounts
Examples: Professional services, consultants, repair businesses, cleaning services

Recurring payments are a great fit for businesses that:

Charge a fixed amount on a regular schedule
Want fully automated billing with no manual customer interaction
Examples: Gyms, subscription boxes, software services, lawn care plans

What are recurring invoices?

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