Invoicing17 July 20263 min read

Automating recurring invoices: how to do it safely

Do you work with subscriptions, maintenance contracts or fixed monthly amounts? Then it is tempting to fully automate invoicing and stop looking at it altogether. That saves time, but automating blindly can also lead to mistakes you only notice much later. This article explains when automation makes sense and how to set it up with a safety net.

For which situations is automatic invoicing suitable?

Recurring invoices are ideal for fixed, predictable amounts: a monthly subscription, a fixed maintenance contract, or a fixed rent for business premises you sublet. The amount and description rarely change here.

Automation also works well for a fixed group of clients with a recurring service, such as a monthly coaching session or a fixed block of hours. You set up the invoice once and the system repeats it automatically.

Automation is less suitable for work with a varying scope, such as projects where the number of hours or the costs differ each month. There, human review beforehand is genuinely valuable.

What are the risks of automating blindly?

The biggest risk is that a mistake repeats itself before anyone notices. If a wrong amount is set, or an expired contract is still active, you send that mistake to the same client again every month.

Changes in the client relationship are also easily overlooked: a client who has stopped, a discount that has ended, or a price agreement that has been adjusted. Without review, the old amount simply keeps going.

In addition, a VAT rate can change or a client can get a new address, which means a fully automatic invoice can suddenly no longer meet the legal requirements without anyone noticing.

What is the four-eyes principle and why does it work?

The four-eyes principle means that a second person, or a second review moment, checks something before an action becomes final. Applied to invoicing, this means in practice: the system automatically compiles the invoice, but a human approves it before it is actually sent.

If you work alone as a freelancer, a 'second pair of eyes' is often a fixed review moment with yourself: for example, spending ten minutes on the first of the month going through the draft invoices before you click send.

In a small or medium-sized business with several employees, this can literally be a colleague who reviews the draft invoices. That way you catch mistakes before they reach the client, instead of having to correct them afterwards.

Which approach fits which situation?

For small, stable amounts with low risk (such as a subscription with a fixed, low amount), full automation combined with periodic spot checks can be enough. Check a handful of invoices every quarter, for example.

For larger amounts, business clients or contracts that change regularly, a draft-and-approve approach is wiser: the system prepares the invoice, and you (or a colleague) approve it before it is sent.

A middle ground is an automatic reminder in advance: the system lets you know a day before a recurring invoice is sent that this is about to happen, so you can still step in if something has changed.

How do you set up recurring invoices in practice?

Start with a clear list of which clients and contracts qualify for automation, and record per client what the fixed amount, frequency and contract end date are.

Make sure the system warns you of deviations, for example when a contract expires or when an amount has been manually adjusted. That way you keep control, even though the software does most of the work.

TelMaar supports recurring invoices with a configurable approval moment, so you decide for yourself how much automation and how much control fits your business. That is usually a better balance than either fully hands-off or doing everything manually.

Frequently asked questions

Is offering automatic invoicing mandatory for subscriptions?

No, it is not a legal requirement. It is a choice to save time, provided you properly set up checks on the accuracy of the invoices.

What is the four-eyes principle in short?

A second review moment, by a colleague or by yourself at a fixed time, before an automatically generated invoice is actually sent.

Do I need to manually approve every recurring invoice?

That depends on the risk. For small, stable amounts a spot check can be enough; for larger or variable amounts, prior approval is wiser.

This article is general information, not tax or legal advice. When in doubt, consult an adviser; rules can change.