Recurring Invoices: How They Work and How to Set Them Up

A recurring invoice saves you from rebuilding the same invoice every month for a retainer, maintenance plan or subscription. You set the client, line items, terms and schedule once; the software creates each new invoice with its own number and date. Whether it then emails the invoice or waits for you is a setting, and choosing it well is most of the job.

This guide explains how recurring invoices differ from subscriptions, how the main tools handle them, how to set one up step by step, and the mistakes that quietly cost money. For choosing the frequency, billing day and due date, see the companion guide on building a recurring invoice schedule.

What is a recurring invoice, and how is it different from a subscription?

A recurring invoice is a document sent on a schedule; the client still decides when and how to pay it. A subscription with automatic charging takes payment from a saved card or bank mandate without the client doing anything. Many tools can combine the two, but they are separate decisions.

When should you use recurring invoices?

Use them when three things stay the same each cycle: the client, the amount (or most of it), and the frequency. Typical fits are monthly marketing or bookkeeping retainers, website maintenance plans, hosting and support contracts, equipment rental, and annual licences.

Skip them, or use review-first drafts, when:

• The amount depends on hours or usage. Bill from tracked time or usage instead, or keep a fixed base line and adjust a variable line on the draft.
• The work is a project with milestones. Milestone-based invoicing or progress billing fits better.
• The client needs a new purchase order number each time. The template cannot know the next PO number, so each invoice needs a manual edit.
• The scope is still changing. Wait until the arrangement settles; a recurring template locks in whatever is wrong with it.

How do QuickBooks, Xero, FreshBooks and Wave handle recurring invoices?

Every major invoicing tool can repeat an invoice; the differences are in the delivery options and how much control you get over the schedule. This summary is based on each vendor's documentation as of October 2026.

Two things the table does not show, and which are worth testing before you trust any tool:

1. What the first generated invoice looks like. Create a schedule with a near first-run date for a test client (yourself) and check the dates, the service period text, tax and the payment link.
2. What happens on short months. A schedule set for the 31st behaves differently across tools. The recurring schedule guide covers this.

How do you set up a recurring invoice?

The steps below work in any tool. Do them in order; most recurring-billing problems come from skipping step 1 or step 4.

Step 1: Agree the terms in writing

Before the first automatic invoice, have a contract, engagement letter or email the client has replied to that states the service, the amount, the frequency, the payment terms and how either side ends or changes the arrangement. An automated invoice for an amount the client never agreed to starts a dispute on day one.

Step 2: Set up the client record

Check the client's legal name, billing address and, most importantly, the billing email. For larger clients this is usually an accounts payable address, not your day-to-day contact. Add any tax ID or PO number the client requires.

Step 3: Build the template

Include everything that is the same each cycle: line items, quantity and rate, tax, payment terms, payment instructions and a short note. Write the line description so it makes sense on any month: "Website maintenance, monthly plan" works on its own; "Website maintenance, March" will be wrong in April unless your tool fills the period in for you. See what to include on an invoice for the full field list.

Step 4: Check tax on the template

Recurring templates are where tax goes missing. If you charge sales tax, VAT or GST, confirm the rate is on the template and appears on a generated invoice. If your tool cannot add tax to a recurring template, generate drafts and add it before sending.

Step 5: Choose the schedule and delivery mode

Pick the frequency and first run date (the schedule guide explains how), then decide between drafts and automatic sending. A good default: review drafts for the first two or three cycles, then switch to automatic sending once the invoices come out right.

Step 6: Add a way to pay and a reminder sequence

Put a payment link or bank details on the template, and turn on automatic payment reminders so an unpaid recurring invoice is followed up without you. The free payment reminder templates help if you send follow-ups yourself.

Step 7: Watch the first live cycle

When the first real invoice is created, open it, check the invoice number, dates, amount and tax, and confirm the client received it.

Worked example: what a missing tax line costs

Worked example with stated inputs: a UK consultant registered for VAT bills a client £1,000 a month plus VAT at the standard rate of 20%, so each invoice should total £1,200. The consultant sets up a recurring invoice with auto-send, but the template has no VAT line.

The consultant still owes HMRC the VAT due on the supplies. If £1,000 is treated as the VAT-inclusive price, the VAT inside it is £1,000 ÷ 6 = £166.67, leaving £833.33 of fee each month instead of £1,000: about £2,000 less over a year. Fixing it later means issuing corrected invoices or asking the client to pay the difference. Review the first generated invoice, and use drafts whenever your tool's recurring templates cannot carry tax. This is a simplified illustration, not tax advice; check how VAT applies to your own supplies.

How do you manage recurring invoices after setup?

Recurring invoices need a light monthly check, not constant attention.

• Price changes. Give written notice before the change takes effect, then update the template (or replace the schedule if your tool cannot edit it) before the next run date. If your contract sets a notice period, give at least that; if it does not, a full billing cycle of notice is a fair minimum.
• Pauses. Pause rather than delete when a client takes a break, so the history and settings stay in place.
• Cancellations. End the schedule on the date the contract ends and send a final invoice that says it is the last one.
• Failed or bounced emails. If a client changes their accounts address, every future automatic invoice goes to the old one. Check delivery status after each cycle.
• Year-end review. Once a year, compare each schedule with its contract: amount, tax rate, terms and billing email. Long-running templates drift out of date.

Late recurring payments need the same follow-up as any other invoice; see how to handle unpaid invoices.

How InvoiceQuickly handles recurring invoices

Recurring schedules are part of InvoiceQuickly's Pro plan ($9/month); the Free plan does not include them. On Pro you create a schedule on the Recurring page:

• Frequency: weekly, monthly, quarterly or yearly, with a first run date you choose.
• Delivery: each invoice is created as a draft for you to review, or, if you tick the option, emailed to the client automatically (the client record needs an email address).
• Template: one line item with a description and price, in your account's default currency.
• Terms: generated invoices are dated on the run date and due 30 days later.
• Control: pause, resume or archive a schedule at any time.

Know the limits before you rely on it. The schedule stores one tax rate, a discount, currency, due-in days, notes and terms. These are copied to generated invoices; check the first draft before enabling automatic email. There is no every-two-weeks option, and a schedule cannot be edited after it is created; to change the price, archive it and create a new one. Each generated invoice gets the next number in your sequence. Payment links are added per invoice, so if you want a Stripe or PayPal link on a recurring invoice, keep delivery on drafts and add the link before sending. Pro reminders apply to the invoice once it is sent.

When recurring invoices are the wrong choice

• Your clients pay by card for small, fixed amounts. A subscription with automatic charging (through Stripe, PayPal or your accounting tool) is less work for both sides than an invoice the client has to act on.
• The amount changes every month. Automation of a document you rewrite each time saves little; generate drafts or invoice from tracked hours.
• You have one or two repeat clients. A calendar reminder and a duplicated invoice may be all you need. The trade-off shifts as volume grows; see the cost of manual invoice processing.
• The client requires a new PO or approval reference each cycle. Automatic sending will produce invoices their AP team rejects.

Frequently asked questions

Can you give me an example of a recurring charge?

A website maintenance plan billed at $400 on the 1st of every month, a quarterly bookkeeping retainer of $1,500, or an annual software licence renewed each January are all recurring charges. In each case the client, amount and frequency are the same every cycle, which is what makes them suited to a recurring invoice or a subscription.

What is the difference between a recurring invoice and a recurring payment?

A recurring invoice is a bill sent on a schedule; the client pays it each time. A recurring payment is money collected automatically on a schedule, usually from a stored card or a bank mandate the client authorised. You can use either on its own or both together.

How do I create a recurring invoice in QuickBooks Online?

Intuit's help article describes creating a recurring transaction template for an invoice and choosing a type: Scheduled templates are sent automatically, Reminder templates are scheduled but you send them manually, and Unscheduled templates are saved for you to use when needed. Intuit lists the feature for QuickBooks Online Essentials, Plus and Advanced.

Should recurring invoices be sent automatically?

Send automatically only when the amount, tax and wording are identical every cycle and the first few generated invoices have been checked. Otherwise create drafts and review them. Drafts cost a minute per invoice and catch errors before the client sees them.

Do recurring invoices get their own invoice numbers?

Yes. Each generated invoice is a separate invoice with the next number in your sequence and its own issue and due dates. That keeps your records and the client's accounts payable system consistent.

Can I change the amount on a recurring invoice?

In most tools you edit the template and the change applies from the next run. Some tools, InvoiceQuickly included, require you to replace the schedule instead. Either way, notify the client in writing before the new amount takes effect.

What payment terms suit recurring invoices?

Shorter terms than one-off projects usually work, because the client expects the invoice and there is no new work to review. Net 7 or net 15 suits many retainers; larger clients may insist on their standard terms, such as net 30. The schedule guide shows how to line due dates up with a client's payment run.

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Last reviewed: October 27, 2026. Tool features are summarized from each vendor's documentation as of that date and can change. The VAT example is illustrative, not tax advice.

Ready to stop rebuilding the same invoice? Start free, then upgrade to Pro for recurring schedules, email delivery and reminders. A recurring invoice template is available if you want a layout to start from.