Recurring billing is an automated process where a business automatically generates and sends invoices to clients on a regular schedule, such as weekly, monthly, or annually, without creating each invoice manually. It is used by businesses that charge clients the same (or similar) amount on a regular basis, such as monthly retainers, subscription fees, or ongoing service contracts.
How does recurring billing work?
You set up a billing schedule once:
- Which client to bill
- How much to charge each cycle
- How often to bill (weekly, monthly, or annually)
- When to start (and optionally when to stop)
The system then creates and sends an invoice automatically on each billing date. You do not need to manually create the invoice each time. Depending on your settings, the invoice is delivered by email, WhatsApp, or both.
Which businesses need recurring billing?
Recurring billing is valuable for any business with regular ongoing clients:
| Business type | Example billing cycle |
|---|---|
| Consultants | Monthly retainer |
| Accountants and bookkeepers | Monthly or annually |
| IT managed service providers | Monthly support contract |
| Design agencies | Monthly retainer |
| Property managers | Monthly management fee |
| Gym and fitness studios | Monthly membership |
| Software businesses (SaaS) | Monthly or annual subscription |
| Tutors and coaches | Weekly or monthly sessions |
| Security services | Monthly service fee |
| Cleaning services | Weekly or monthly contract |
How is recurring billing different from a one-off invoice?
A one-off invoice is created manually for a specific, completed piece of work. A recurring invoice is generated automatically on a schedule. The underlying invoice document is the same; the difference is whether you create it manually or it is created for you.
Quick answer
What is recurring billing?
Recurring billing is an automated system that generates and sends invoices to clients on a regular schedule without manual action. Instead of creating a new invoice each month, you set up a billing schedule once with the client, amount, frequency (weekly, monthly, or annually), and start date. The invoicing software then creates and sends each invoice automatically on the scheduled date. For monthly schedules, tools like Rebill support scheduling anchors so you can bill on the last day of the month, the 1st, a specific date, or a set number of days before month-end. Recurring billing is used by consultants on monthly retainers, accountants, IT managed service providers, subscription businesses, gyms, and any business with regular ongoing client relationships. Rebill’s recurring billing is available on the Premium plan at R99/month and supports ZAR invoicing with email and WhatsApp delivery.
What are the benefits of recurring billing?
Save time: If you have 10 monthly retainer clients, recurring billing saves you from creating 10 invoices each month. Set it up once and let it run.
Never forget to bill: It is surprisingly easy to forget to send an invoice at the end of a busy month. Recurring billing removes this risk entirely.
Consistent cash flow: Regular automatic invoicing means payment dates are predictable. Your clients know when to expect invoices, and you know roughly when to expect payments.
Professional consistency: Clients receive invoices on the same date each month with consistent formatting. This looks professional and builds billing habits in your client’s payment process.
Does recurring billing charge clients automatically?
In most invoicing tools, including Rebill, recurring billing sends the invoice automatically but the client still needs to pay it (by clicking a payment link or doing an EFT). This is different from an automatic debit order or subscription billing where the client’s card or bank account is charged automatically without their action each time.
For businesses that want fully automatic payment collection (where the client does not need to do anything each cycle), this requires a debit order mandate or a card-on-file subscription setup with the payment provider.
How to set up recurring billing in Rebill
Rebill’s recurring billing is on the Premium plan at R99/month. Setup takes a few minutes:
- Go to Recurring Billing in your dashboard
- Create a new schedule and choose the client
- Set the line items (services and amounts)
- Set the frequency and start date
- Activate
Done. Rebill handles the rest.
Frequently asked questions
Is recurring billing the same as a subscription?
Recurring billing and subscription billing are related but not identical. Recurring billing refers to the automated generation and delivery of invoices on a schedule. A subscription implies a continuous service where the client expects ongoing access. For practical purposes, most subscription businesses use recurring billing to collect payments. The term 'subscription billing' often also implies automatic payment collection (charging a card on file), whereas recurring billing can refer to just the invoice generation side.
Can I pause or stop a recurring billing schedule?
Yes. In Rebill, you can pause, edit, or cancel a recurring billing schedule at any time. Pausing stops new invoices from being generated until you resume. Cancelling removes the schedule permanently. You can also edit the line items or amount and the changes will apply from the next billing cycle.
What if the invoice amount changes each month?
If your charge varies each month (for example, you bill for actual hours worked rather than a fixed retainer), recurring billing with a fixed amount may not be appropriate. You would still create each invoice manually. However, Rebill's recurring billing lets you edit the line items of a generated invoice before it is sent, which can work for invoices with minor variations each cycle.