Top Tips for Managing Recurring Payments to Optimize Cash Flow

Does it sometimes feel like money disappears from your business account before you even notice? Keeping track of routine expenses like software fees, supplier charges, and membership services does not seem to be a problem, but when you’re overloaded with other tasks, it may. Over time, these small, repeated transactions can impact cash flow more than expected.

However, just a few simple adjustments can help you take control of these operations.

What Are Recurring Payments?

These are repeated transactions that happen automatically at a set time interval, such as monthly or annually. They can be used for things like software subscriptions, utilities, or vendor invoices. Businesses looking to streamline HR and payroll processes can explore solutions like Matchr to find the right HR software that fits their needs.

Such financial transfers simplify billing processes, but without close monitoring, they can spiral out of control. To keep your spending in check while maintaining a steady cash flow for other priorities, you should thoroughly control such expenses and ensure all of them are made on time.

10 Tips for Managing Recurring Business Payments

Here are a few practical strategies on how you can control the expenses you have, minimize risks, and keep your finances in good shape.

List all regular expenses

Identify every recurring payment your company makes. For this, use special accounting software, a spreadsheet, or a mobile app — whatever can help you to track these costs. Include details like amounts, payment schedules, and due dates. This list can include payments for:

Software subscriptions like accounting software, project management platforms, design programs, or CRM systems;
Office rent;
Utilities such as electricity, water, internet, and phone services.
Marketing or advertising subscriptions;
Vendor or supplier payments;
Employee benefits like health insurance;
Membership fees;
Cloud storage services;
Payroll services;
Maintenance and support services.

Depending on the type of business and the industry in which you operate, this list can contain an endless number of other services and things you have to pay for regularly. So, don’t forget any of them.

Use payment automation tools

There are a variety of programs available that allow you to handle recurring payments more effectively. Many businesses rely on software such as QuickBooks or Zoho to automate scheduled payments and set timely notifications.

If a vendor accepts ACH transfers, you can make them recurring too. For instance, if you pay for a certain service the same sum, every month, there is no need to sign a separate contract every month. All you need to do is to use an ACH authorization template and fill it out with necessary banking details of your service provider.

Audit subscriptions at least quarterly

It’s common for companies to forget about unused tools or services. By reviewing these expenses every few months, you can identify underused or redundant subscriptions. Cancel anything that doesn’t align with your business goals.

For instance, a media company subscribes to several graphic design tools but only uses one regularly. Cutting excess services will free up funds for other, more important, needs.

Negotiate payment terms with vendors

Vendors may offer flexible payment terms, especially if you’ve been working with them for a long time. Ask if they offer discounts for annual payment plans or reduced rates for loyal clients. Though the sum may not seem big, in perspective, such an approach can save your company much money.

Set payment reminders

Even if you use automated systems for all financial operations, timely reminders act as an extra safety measure. Many banks and accounting apps allow you to schedule alerts a few days before payments come due. It ensures you and your employees do not find themselves in a situation when they cannot work because you have failed to pay the internet provider.

Keep business and personal accounts separate

Using one account for both personal and business expenses causes confusion and complicates records. Instead, open a separate business account to handle recurring transactions. This approach makes bookkeeping far simpler and keeps tax preparation less stressful.

Watch for failed payments

Occasionally, a failed recurring payment can happen due to an expired card, insufficient funds, or a technical error. Regularly monitor such things to make missed payments quickly.

Use Business Credit Cards for Rewards

Whenever possible, use credit cards with benefits when paying for recurring services. Many include cashback incentives or points that you can redirect back into the business. Just make sure to pay the balance fully each month to avoid interest charges.

For example, if a marketing firm pays for recurring SEO tools with a rewards-based credit card, the points collected over a year could go toward employee development programs or discounted travel costs.

Organize a Payment Calendar

It’ll help you track recurring expenses over the year and give you an overview of upcoming obligations and prepare adequately. You can use Google Calendar or special software for this.

A retail store owner tracking employee insurance premiums, software licenses, and monthly rent payments can avoid last-minute surprises by inputting these dates into a calendar.

Keep a reserve dedicated to payments

To stay ready for any unexpected issues, maintain a small buffer fund in your business account. This ensures recurring payments can happen even during slower financial periods.

For example, a freelance graphic designer might face occasional disruptions in client payments. Keeping a reserve allows them to pay recurring dues, such as design software subscriptions, without delays.

Conclusion

Recurring payments play a vital part in running efficient businesses. From expenses on software tools to handling vendor fees, staying organized with your payments protects your cash flow. To get control, create a payment tracker, reassess your subscriptions regularly, and use tools like ACH authorization templates for simplified management.

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More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
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More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.