Recurring payment, what you need to know

The recurring payment is that payment that your company makes automatically subject to a daily, weekly, monthly, quarterly or annual frequency. In general, this type of expense corresponds to the charge for the consumption of products or services of a very varied nature, with a common characteristic: that its collection was previously authorised by the debt holder.

You probably already knew about recurring payments, but what you may not yet know is that they can represent an interesting source of advantages for your business.

Recurring payment and its benefits for the company

Many times, recurring payment is a solution that makes accounting management easier for the entrepreneur. The advantages of using media such as this are, for example:

• To be able to benefit from discounts.
• Improve budget planning.
• Avoiding unforeseen events.
• Gain control over your accounts.
• Facilitate payment for services or products to employees of your business.

Thus, in the case of refuelling, Ticket Gasolina would be one of these means. Without this tool, a business with roaming sales staff, specialists and executives would face petrol costs for the company cars available to all of them.

As a result, at the end of the month:

• Expenditure on petrol would be difficult to predict, and may include significant variations from month to month.
• Accounting and control would be complicated, as information would come from different accounts, cards and individuals.
• There may be delays in providing proof of payment.
• There is a risk of not being able to justify some expenditure, if receipts are lost or never reach the company.

On the contrary, companies that choose to incorporate such a card into their management enjoy the benefits of recurring payments that this system provides:

• Single invoice for VAT relief, simplifying the company's compliance with its tax obligations.
• Guaranteed 3% discount on refuelling at any petrol station in the network, an extra that would not be possible when not using a recurring payment system such as this one.
• The largest network of use with Solred, so that there is always an accessible pump on the route to be travelled and no time is wasted.

With Ticket Gasolina prepaid you only need to decide:

• The number of cards they want to enable for petrol payments.
• The amount that each will have available per month for refuelling.

In this way, every first day of the month you will be sure to know what the total amount will be for all cards and the total amount payable including VAT. At the same time, your employees will have greater convenience and freedom, as they will be able to pay this type of expense without having to advance the money and without having to worry about keeping and presenting the receipt afterwards.

Did you know about this way of taking advantage of recurring payments to improve your accounting management?