Cycle billing

Cycle billing occurs when an organization issues invoices to its customers on a rotating schedule. For example, customers whose last names begin with A through C are billed on the first day of the month, followed on the next day by those customers whose last names begin with D through F, and so on. This concept varies from the more common practice of issuing all invoices on the same date. By engaging in cycle billing, a business can flatten the volume of billing work to be completed on any given day. However, this approach can have a negative impact on cash flows, since some invoices may be delayed several days past when they would normally be issued.

Related Courses

Bookkeeping Guidebook 
New Controller Guidebook