Blog

Wave is a popular accounting software solution designed for small businesses, offering a range of financial management tools, including invoicing, expense tracking, and payroll. One of the key features that can help streamline your business operations is the ability to set up automatic payments for recurring invoices. This guide will walk you through the process of setting up automatic payments on Wave, ensuring you never miss a payment from your clients.

Why Set Up Automatic Payments?

Time-Saving: Automating payments saves time and reduces the need for manual invoicing and payment tracking.

Consistency: Regular payments ensure consistent cash flow, which is crucial for small businesses.

Improved Client Relationships: Offering clients the convenience of automatic payments can enhance your professional relationship and reduce payment delays.

Error Reduction: Automation reduces the chances of human error, ensuring payments are processed correctly and on time.

Steps to Set Up Automatic Payments on Wave

1. Create a Recurring Invoice

Before setting up automatic payments, you need to create a recurring invoice for your clients.

Step 1: Open your Wave account and log in.

Step 2: Go to the “Sales” tab on the left-hand menu and select “Recurring Invoices.”

Step 3: The "Create a recurring invoice" button should be clicked.

Step 4: Fill in the invoice details, including the client’s name, the frequency of the invoice, the start date, and the items or services being billed.

Step 5: Set the frequency of the invoice (e.g., weekly, monthly) according to your agreement with the client.

Step 6: Save the invoice once all details are complete.

2. Enable Automatic Payments

Once your recurring invoice is set up, you can enable automatic payments for it.

Step 1: While still in the recurring invoice settings, scroll down to the “Payment options” section.

Step 2: Ensure that the option for “Credit Card Payments” or “Bank Payments (ACH)” is enabled. This allows your clients to pay automatically using their preferred payment method.

Step 3: Select the option for “Auto-pay.” This will allow your clients to agree to have their payments automatically deducted on the due date of each invoice.

Step 4: Save the recurring invoice with the auto-pay feature enabled.

3. Invite Your Clients to Set Up Auto-Pay

Clients need to authorize automatic payments before they can be activated.

Step 1: When you send the recurring invoice to your client, they will receive an email notification with the invoice details.

Step 2: In the email, there will be an option for the client to “Set up auto-pay.”

Step 3: The client will need to enter their payment information, such as credit card or bank details, and agree to the automatic payment terms.

Step 4: Once the client has set up auto-pay, future invoices will be automatically paid according to the schedule you have set.

4. Monitor Payments and Invoices

After setting up automatic payments, it’s important to monitor the transactions to ensure everything runs smoothly.

Step 1: Go to the “Sales” tab and select “Recurring Invoices” to view all the invoices you’ve set up.

Step 2: Check the status of each invoice to confirm that payments are being processed as expected.

Step 3: If a payment fails or an issue arises, Wave will notify you, allowing you to take action promptly.

FAQs

Can I set up automatic payments for any client?

Yes, as long as the client agrees to the auto-pay terms and provides the necessary payment information, you can set up automatic payments for any client.

Is there a fee for using Wave’s automatic payment feature?

Wave charges a small fee for processing credit card payments (around 2.9% + $0.30 per transaction) and bank payments (1% per transaction). However, setting up auto-pay itself does not have an additional fee.

Can I cancel or modify a recurring invoice with automatic payments?

Yes, you can modify or cancel a recurring invoice at any time through your Wave dashboard. Changes will take effect on the next invoice cycle.

What happens if a client’s payment method fails?

If a client’s payment fails, Wave will notify both you and the client. The client will need to update their payment information to continue with automatic payments.

Can clients set up auto-pay themselves?

Clients must agree to auto-pay when they receive their first recurring invoice. They cannot set it up independently without an invoice prompt.

Conclusion

Setting up automatic payments on Wave is an efficient way to manage recurring billing and ensure timely payments. By following the steps outlined in this guide, you can offer your clients the convenience of auto-pay, streamline your invoicing process, and maintain consistent cash flow for your business. As you continue to use Wave, the automatic payment feature will save you time and reduce the likelihood of missed payments, allowing you to focus on growing your business.