How to Create Recurring Invoices for Monthly Clients

Quick answer

A recurring invoice is the same invoice issued on a fixed schedule, such as the 1st of every month, for ongoing work like retainers, maintenance contracts or subscriptions. Set the amount, start date, frequency and end date once, then check each invoice before it goes out and track whether it was paid.

When recurring invoices make sense

• Monthly marketing or design retainers
• Website maintenance or hosting management
• Annual maintenance contracts billed monthly or quarterly
• Bookkeeping or consulting on a fixed monthly fee
• Coaching packages billed per month

They are not a good fit when the amount changes every month based on hours or usage. In that case, use a template and enter the variable amount each time.

Timing: in advance or in arrears?

• In advance: invoice on the 1st for the coming month. Best for retainers, because you are paid before doing the work.
• In arrears: invoice at month end for work done. Common with larger clients whose procurement requires it.

State the choice in your agreement so the client's finance team expects it.

Worked example

A Chennai social media agency has a retainer of ₹50,000 per month plus 18% GST with a client in Tamil Nadu, billed in advance on the 1st, payable within 7 days.

• Taxable value: ₹50,000
• CGST 9%: ₹4,500
• SGST 9%: ₹4,500
• Monthly invoice total: ₹59,000
• Annual billing: ₹7,08,000

When the client requests a one-off festive campaign in October, the agency raises a separate invoice for it rather than editing the recurring one. This keeps the retainer clean and makes scope changes visible.

Set-up checklist

1. Client details and GSTIN
2. Fixed line items and amount
3. Frequency (monthly, quarterly) and invoice day
4. Start date and end date or number of cycles
5. Payment terms
6. Who receives it (and whether a PO number must be quoted)

Recurring invoices and GST timing

For services supplied continuously under a contract, Section 31(5) of the CGST Act sets when the invoice is due:

• If the contract fixes a due date for payment, issue the invoice on or before that due date.
• If it does not, issue the invoice on or before the date you receive payment.
• If payment is linked to finishing a milestone, issue the invoice on or before the date that milestone is completed.

For a retainer paid in advance on the 1st, that means the invoice should be issued by the 1st. Building the invoice day into your recurring schedule keeps you compliant without thinking about it.

Quarterly and annual contracts

Not every recurring invoice is monthly. An annual maintenance contract (AMC) worth ₹1,20,000 a year could be billed quarterly at ₹30,000 plus GST, on 1 April, 1 July, 1 October and 1 January. Write the frequency, amount and number of cycles into the agreement, and set the recurring invoice to stop after the fourth cycle unless the contract is renewed.

Price changes

Agree in the contract how and when the fee can change, for example "fees are reviewed every April". When a change is agreed, update the recurring invoice from the effective date and tell the client before the first new invoice goes out, so their finance team is not surprised by a different amount.

Track every cycle

The risk with recurring invoices is that a missed payment hides among the rest. Each month, check:

• Was the invoice issued on time?
• Was it paid in full?
• Is anything older still open?

If a client misses two cycles, talk to them before the third invoice goes out.

Common mistakes

• Letting a recurring invoice run after the contract ended.
• Forgetting to update the rate after an agreed increase.
• Changing the recurring invoice for one-off work instead of billing separately.
• Not reviewing the invoice before it is sent.

Frequently asked questions

Next step

Set up each retainer once and review every invoice before it goes out. In PikZiy Books, subscriptions create an invoice every week, month, quarter or year, and the collections list shows any cycle that is still unpaid.

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