Recurring Invoices Explained

What Are Recurring Invoices?

Recurring invoices are invoices that are automatically generated and sent at regular intervals — weekly, monthly, quarterly, or on any schedule that suits your arrangement with a client. Instead of manually creating and sending the same invoice each month, the process is automated.

For freelancers, recurring invoices are ideal for ongoing client relationships where the work and payment are predictable. They save time, ensure you never forget to invoice, and create predictable cash flow.

How they work:

1. You set up a template with the client details, services, and amount
2. You choose the billing frequency (monthly, weekly, etc.)
3. You set a start date and optionally an end date
4. The system generates and sends invoices automatically on schedule
5. Invoice numbers increment automatically

Most modern invoicing software, including FreelancerHub, supports recurring invoices. Some tools also allow variable recurring invoices where certain elements change each cycle.

When to Use Them

Recurring invoices work best when you have predictable, regular work with consistent payment amounts. Here are the most common scenarios:

Monthly retainers: You're retained by a client for a fixed number of hours or deliverables each month at a set fee. Example: 10 hours of ongoing development support at £100/hour = £1,000/month.

Subscription services: You provide ongoing services like website maintenance, SEO monitoring, or social media management for a fixed monthly fee.

Payment plans: A larger project fee split into equal monthly installments. Example: A £6,000 project paid as £2,000/month over three months.

Membership or access fees: Clients paying for ongoing access to resources, communities, or support.

Setting Up Recurring Billing

Setting up recurring invoices properly from the start prevents problems down the line. Here's how to configure them effectively:

Step 1: Define the scope clearly
Before setting up recurring billing, document exactly what's included in the recurring fee. "Monthly SEO services" is vague; "Monthly SEO services including keyword tracking report, 2 blog optimisations, and technical audit of up to 20 pages" is clear.

Step 2: Choose the right frequency
Most retainers are billed monthly, but consider what works for both parties. Some clients prefer quarterly billing to reduce admin. Some freelancers prefer billing at the start of each period (payment in advance) rather than the end.

Step 3: Set invoice dates strategically
Consider when your clients process payments. Invoicing on the 1st of the month gives them the whole month to pay within Net 30 terms. Invoicing mid-month might align better with their payment runs.

Step 4: Configure the invoice template
Ensure your recurring invoice template includes:

• Clear service description matching your agreement
• The billing period (e.g., "Services for March 2026")
• Any reference numbers or PO numbers required
• Consistent invoice numbering sequence

Step 5: Set notification preferences
Configure reminders so you know when invoices are sent, when they're viewed, and when to follow up if unpaid.

Approval Workflows

For some recurring arrangements, you may need an approval step before invoicing. This is especially important when work volumes vary or when clients need to confirm deliverables before payment.

Full automation (no approval): Suitable for fixed retainers where the work and fee are identical each month. The invoice generates and sends automatically — you don't even need to be involved.

Review before sending: The invoice is generated automatically but saved as a draft for you to review before sending. This lets you make any adjustments or add notes specific to that month.

Client approval first: Some arrangements require the client to sign off on the month's work before invoicing. In this case, send a deliverables summary for approval, then trigger the invoice once confirmed.

Variable recurring invoices: Some invoicing tools allow recurring invoices where certain fields (like hours or item quantities) are filled in each cycle. The invoice is generated on schedule, but paused for you to enter the specifics.

Retainer Agreements

Recurring invoices typically go hand-in-hand with retainer agreements. A retainer is a formal arrangement where a client commits to booking your time or services on an ongoing basis, usually at a preferential rate.

Types of retainers:

Time-based retainers: The client buys a block of your time each month (e.g., 20 hours at £75/hour). Unused hours may roll over or expire depending on your agreement.

Deliverable-based retainers: The client pays for specific outputs each month (e.g., 4 blog posts, 2 email campaigns) at a fixed monthly rate.

Access retainers: The client pays for priority access to your services, guaranteed response times, or standby availability, regardless of whether they use you that month.

Key terms to include in retainer agreements:

• Scope of included services
• Monthly hours or deliverables
• What happens to unused allowances
• How overage is charged
• Notice period for ending the arrangement
• Payment terms and schedule
• Review periods for adjusting scope or pricing

Benefits of retainers for freelancers:

• Predictable monthly income
• Less time spent on proposals and client acquisition
• Deeper client relationships and better work
• Reduced cash flow stress

Best Practices for Recurring Work

Make your recurring arrangements successful with these proven practices:

Review periodically: Schedule quarterly or bi-annual reviews of retainer arrangements. Are you still providing value? Does the scope need adjusting? Have your costs increased? Regular reviews prevent resentment building on either side.

Track time even on fixed retainers: Even if you're billing a flat monthly fee, track how much time you actually spend. This helps you assess profitability and makes informed conversations about scope changes possible.

Communicate proactively: Don't just send invoices. Provide monthly summaries of work completed, even for fixed-fee arrangements. Clients who understand the value they're receiving are more likely to stay and less likely to question invoices.

Build in rate increases: Include annual rate review clauses in retainer agreements. A 3-5% annual increase to account for inflation is reasonable and expected in long-term business relationships.

Have clear notice periods: Both you and the client should be able to end the arrangement with reasonable notice — 30 days is typical. This protects both parties while allowing flexibility.

Require payment in advance: For retainer work, billing at the start of each period (not the end) ensures you're never doing work you might not be paid for. Frame it as "securing your allocation for the month."

Recurring invoicing is one of the best things about established freelance businesses. It transforms the uncertainty of project-by-project work into stable, predictable income. Invest time in setting up recurring arrangements properly, and they'll become the foundation of your financial stability.