Bonsai provides three types of invoice automation:
Recurring Invoices
Subscription Invoices
Bundled Invoices
This article focuses on recurring and subscription invoices, explaining how they work, how to set them up, and what your clients experience.
Recurring Invoices
Recurring invoices automatically duplicate at your chosen billing interval: weekly, biweekly, monthly, or yearly.
The series ends on the date you set.
You must manually send each invoice or schedule it to auto-send..
Key Features:
Edit the draft invoice before each billing cycle
If you choose auto-send, all future invoices in the series will be sent automatically on the same date each billing cycle.
Clients see them as regular invoices with standard payment options and reminders
To your client, these invoices will appear just like regular invoices, with standard payment options and reminders.
Ideal Use Case: Long-term projects with recurring milestones
Subscription invoices
Subscription invoices automatically charge the client’s saved payment method on each billing cycle.
Only the first invoice needs to be sent manually to start the subscription.
After the first payment, Bonsai continues to bill automatically until the schedule ends.
Important Notes:
If invoice amounts change after the client has saved their payment details, the client must re-confirm the updated auto-payment.
If payment fails, Bonsai continues the schedule and notifies both parties to update payment details.
Only credit/debit cards via Bonsai Payments or Stripe are supported (PayPal and ACH not supported).
Client Experience:
Clients receive email notifications for each charge
They can view subscription details and opt out at any time
Authentication via a magic link emailed to the client is required to securely store payment details
Creating a Subscription Invoice
Navigate to Financial Management > Invoices > New Invoice
Select Subscription Invoice from the Invoice Type dropdown
Set the frequency, add your client and project, and define when the series should end
Ensure credit/debit cards are enabled in Payments > Payment Methods
Fill out invoice line items and set the Issue Date
Send the first invoice to initiate the subscription
Reviewing Subscription Details:
At any point, you can review the subscription invoice details under the 'Overview' section in the righthand side panel:
Billing cycle
Next billing date
Payment method on file
All invoices in the series
If you wish to end the series at any point, you can select 'End Subscription Billing'.
Client workflow for Subscription Invoices
1. Client receives an email with a magic link to authenticate
2. They enter their credit card details
3. After paying their first invoice in the billing cycle, their payment method will be saved and charged for any upcoming subscription payments unless they opt-out or your subscription billing ends:
4. Clients can update and cancel their payment method anytime via the latest invoice in the series:
FAQs
1. How do recurring and subscription invoices differ?
Recurring invoices: You manually send or schedule each invoice; clients pay each one individually.
Subscription invoices: After the first payment, the system automatically charges the client each billing cycle using their saved payment method.
2. Do clients need to authenticate for both invoice types?
Recurring invoices: No authentication needed; clients pay as they receive each invoice.
Subscription invoices: Yes, clients must click a magic link emailed to them to securely save their payment method for auto-charging.
3. Can clients update their payment information?
Recurring invoices: Not applicable; clients pay manually each time.
Subscription invoices: Yes, clients can update their saved credit/debit card from the most recent invoice in the series.
4. Which payment methods are supported?
Recurring invoices: All Bonsai-supported payment options (credit/debit cards, ACH, PayPal, etc.)
Subscription invoices: Only credit/debit cards via Bonsai Payments or Stripe. ACH and PayPal are not supported.