5 Ways to Get Paid Faster with Automated Invoicing

Getting paid on time is one of the biggest challenges for small business owners, freelancers, and contractors. Whether you’re running a solo operation or managing a team, late payments can mess with your cash flow and growth.

Automated invoicing helps solve this by sending invoices, reminders, and payment requests on autopilot — so you can spend less time chasing payments and more time doing what you do best. 

In this guide, you’ll learn how to:

• Use email reminders to encourage on-time payments
• Set up recurring invoices for consistent billing
• Enable automatic payments through secure platforms
• Schedule invoices in advance for project milestones
• Accept multiple payment methods to reduce friction

Plus, we’ll share tools and strategies to modernize your invoicing workflow in 2025.

What is Automated Invoicing?

Automated invoicing is part of a broader automation software solution that simplifies and accelerates the invoice processing and payment processing workflow. It replaces outdated manual processes with technology-driven tools that save time and reduce friction.

This process often integrates with other systems like accounts receivable, accounts payable (AP), or an ERP system, creating a smoother workflow across your business. These automation platforms often support multiple payment methods and allow for instant updates between departments.

Invoicing software also allows for consistent branding, faster turnaround, and reduced risk of human errors. Many businesses integrate electronic invoicing directly into their existing accounting system, reducing delays between invoice creation and payment collection. 

Plus, you can manage customer support and billing queries more efficiently by keeping everything in one place.

Tools such as Invoice Fly’s Invoice Maker make it easy to manage all your invoicing tasks from one dashboard. 

If you want to understand more about what an invoice includes and why it matters, check out our guide on what is an invoice?

Automated Invoicing vs. Manual Invoicing

Manual invoicing typically involves creating documents in Word or Excel, copying and pasting client details, and manually tracking payments. It’s prone to delays and errors — and quickly becomes time consuming.

By contrast, automated invoicing uses pre-built templates, client databases, and online payments integrations to streamline invoice processing and ensure quicker payment cycles. 

When combined with an integrated accounting system, this process creates a seamless bridge between billing, reconciliation, and cash flow forecasting. to send accurate, professional invoices faster. Here’s how they compare:

For a full breakdown of these billing approaches, see our article on Invoice vs. Bill: What’s the difference?

The benefits of automated invoicing

Automating your invoicing doesn’t just save time — it can significantly improve how you manage and collect revenue. Here are some of the biggest advantages:

• Faster payments: According to QuickBooks, businesses using automation see faster payment turnarounds thanks to built-in reminders and easier payment options.
• Fewer errors: Auto-fill and saved templates help prevent mistakes like duplicate line items or incorrect charges.
• Professional appearance: Branded invoice templates ensure consistency across all client communications.
• Better tracking: Monitor outstanding invoices and view invoice history in one place.
• Scalability: Whether you’re handling 10 or 100 clients, automation helps you grow without multiplying your workload.
• Improved review and approval: Automated systems route invoices to the right team member for faster processing and accountability.

Still relying on spreadsheets? Tools like Invoice Fly’s Free Invoice Generator let you create and send invoices quickly and at no cost.

7 Ways to Automate Invoicing

1. Email reminders

Late payments often stem from forgetfulness, not bad intentions. Setting up automatic reminders — before and after the due date — can significantly reduce delays.

Platforms like Wave recommend setting up multiple automated reminders — such as 3 days before the due date, on the due date, and a few days after — to help reduce overdue invoices.

2. Set up recurring invoices

For clients on retainers or subscription services, recurring invoices save hours. Once set, they’ll automatically go out at your chosen interval.

You can also pre-fill line items and taxes. Want to learn how to create a professional invoice for recurring services? Read our How to Write an Invoice guide.

3. Enable automatic payments

Enable auto-pay by connecting with services like Stripe or Invoice Fly’s Online Payments. This not only gets you paid faster but helps you avoid follow-ups entirely.

Just make sure clients give proper authorisation, and always include cancellation or refund terms in your invoice.

4. Schedule invoices ahead of time

If you’re planning ahead you can schedule invoices to be sent automatically on a specific date. This is perfect for milestone-based payments or project-based billing.

5. Accept multiple payment methods

Speed up the payment cycle by giving clients options: credit cards, ACH, PayPal, Apple Pay, and more. Many platforms also allow for partial payments or tipping.

Offering a discount for early payment (e.g., 2% off if paid within 5 days) can further encourage prompt action.

6. Expense management integration

Invoicing software that links with your expense tracker lets you instantly pull reimbursable costs into your client invoice. This is ideal for project-based industries like construction or consulting.

For example, if you logged a $600 equipment rental via QuickBooks, it can automatically appear as a line item on your invoice.

7. Use invoicing software to build and send invoices

Use purpose-built tools like Invoice Fly’s Invoice Maker to save templates, track payment status, and convert quotes to invoices in a click.

Need a quick visual of your invoice flow? Our article What is a PO Number? can help you connect purchase orders and invoicing in a more structured workflow.

Top 4 Challenges With Manual Billing Systems

Time Consuming

Manual billing is one of the most time-intensive tasks for small businesses. Creating invoices in Word or Excel, searching for client data, calculating totals, and formatting each document from scratch can take hours every week. 

A survey by Sage found that small business owners spend an average of 120 working hours annually on administrative tasks like invoicing.

Switching to automated invoicing frees up that time by allowing you to create templates, schedule recurring invoices, and pull client data instantly — letting you focus on client work instead of paperwork.

Prone to Errors

Manually entering line items, totals, and tax rates increases the likelihood of errors — especially when dealing with complex or high-volume billing. 

According to a report by the Institute of Finance & Management, the average error rate for manually processed invoices is around 3.6%, which can result in costly disputes and payment delays. 

Automated systems reduce this risk by using pre-filled fields, built-in validation checks, and consistent formatting across all documents.

Limited Scalability

While manual processes might be manageable for a handful of clients, they quickly become unsustainable as your business grows. Scaling your operations means issuing more invoices, following up more often, and handling more payment variations. 

Without automation, that translates into more time, higher labour costs, and greater potential for mistakes.

In contrast, automated invoicing platforms allow you to scale without increasing your administrative burden. You can manage 5 or 500 invoices with the same tools, helping you grow sustainably.

Lack of Insights

Manual billing doesn’t just slows you down and can leave you in the dark. Without a centralised dashboard or analytics, it’s hard to identify trends, track outstanding balances, or monitor your average time-to-pay.

Automated platforms often come with built-in reporting tools that highlight patterns like frequently late payers, average invoice approval time, or your most profitable clients. 

These insights can help improve cash flow and inform smarter business decisions. For example, using accounts receivable analytics has been shown to improve collection rates and reduce days sales outstanding (DSO), according to CFI.

Want to understand the differences between invoice types and what to send when? Read our breakdown of Invoice vs. Quote.

Start Invoicing Smarter

Automated invoicing is a practical upgrade that pays off quickly. You get paid faster, spend less time on admin, and reduce your risk of human error.

Whether you’re managing a few clients or running long-term contracts for dozens of products or services, the right automation system can modernize your accounts payable process and improve client satisfaction.

If you’re ready to ditch spreadsheets and manual chasing, now’s the time to make the move.

Need an invoicing solution for your small business? Try Invoice Fly’s Invoice Maker — it’s free!