Recurring and Retainer Invoicing
Guide • Canada • last updated October 2026
How to set up recurring invoices and retainers, when to use each, and how to automate billing so you never chase a payment again.
If you bill the same clients regularly, recurring invoices and retainers save hours and smooth your cash flow. This guide explains both and when to use each. Set them up in the FacilInvoice app.
Recurring invoices
A recurring invoice sends automatically on a schedule, weekly, monthly or quarterly, for a fixed amount. It is ideal for subscriptions, maintenance plans and ongoing services, and it means you never forget to bill.
Retainers
A retainer is an agreed amount a client pays up front for a block of work or availability over a period. You invoice the retainer, then track work against it. Retainers give you predictable income and clients priority access.
When to use each
Use recurring invoices when the amount and cadence are fixed. Use a retainer when the work varies but you want guaranteed income and the client wants reserved time.
Automating billing
Automation is the point. Set the schedule once, add online payment, and let reminders handle the rest. You spend time on the work, not the admin.
A worked example
A bookkeeper charges a $500 monthly retainer billed on the first, with 13% HST in Ontario, for $565 a month. The invoice recurs automatically and the client pays by card on file.
Common mistakes to avoid
- No clear scope on a retainer, so work creeps beyond it.
- Forgetting to apply tax to recurring amounts.
- Manual re-sending instead of automating.
Pricing a retainer fairly
A retainer should reflect the value and the reserved capacity, not just hours. Decide whether unused time rolls over or expires each period, and whether overage is billed separately, then put it in writing. A clear retainer agreement prevents the slow scope creep that erodes the arrangement for both sides.
Keeping recurring billing accurate
Automation is only helpful if the numbers stay right. Review recurring invoices when a client's plan, price or tax situation changes, and apply the correct provincial tax to every cycle. A card or bank account on file plus automatic receipts keeps the whole loop hands-off and reliable.
Tracking work against a retainer
Log the work you deliver against the retainer so both you and the client can see the value each period. A short monthly summary, hours or deliverables against the agreed scope, justifies the fee, surfaces overage early, and makes renewals easy.
Which model fits
- Fixed amount, fixed schedule: recurring invoice.
- Reserved time, variable work: retainer.
- Both benefit from auto-pay and automatic receipts.
Reducing churn with predictable billing
Predictable billing is good for the client too. A clear recurring invoice or a well-defined retainer removes month-to-month friction and makes your service feel like a dependable fixture rather than a repeated negotiation. Send a short summary of what was delivered each period so the value is visible and renewal is an easy yes.
Keep the payment method on file and auto-charge where the client agrees, so a lapse in payment never quietly ends a good relationship.
Recurring and retainer checklist
- Define scope and what happens to unused time.
- Set the schedule and apply the correct tax each cycle.
- Keep a payment method on file.
- Send a short value summary each period.
Frequently asked questions
What is the difference between a recurring invoice and a retainer?
A recurring invoice bills a fixed amount automatically on a set schedule, ideal for subscriptions and maintenance. A retainer is an agreed amount a client pays up front for a block of work or availability. Use recurring billing when the amount is fixed and a retainer when the work varies.
How do I set up recurring invoices in Canada?
Set the amount, the schedule and the applicable provincial tax once, add a payment method on file, and let the software send and charge automatically. Review the amount whenever the client's plan or tax situation changes so every cycle stays accurate.
How should I price a retainer?
Price it to reflect the value and the capacity you reserve, not just hours, and decide whether unused time rolls over or expires. Put the scope and overage terms in writing so the arrangement stays fair as the work varies.