Definition of Cycle billing:
Cycle billing is an invoicing strategy that involves billing a designated percentage of customers each day, as opposed to billing them all together, perhaps at the end of the month.
Invoicing practice (followed by telephone companies and utilities) in which a certain percentage of credit customers is billed every day, instead of billing them all together at month end.
Cycle billing is the practice of invoicing different customers based on a schedule rather than billing all accounts at once on a single date. Statements are prepared and sent out at varying intervals, spreading out the company’s workload and making it easier for it to keep track of who has been billed.
How to use Cycle billing in a sentence?
- Strategies include invoicing for the largest amounts owed first, then the next biggest, and so forth; billing alphabetically; or billing based on the day of the month the customer's account was opened, or the customer chose to be billed.
- Cycle billing is a style of account management that enables companies to bill customers on different days of the month, rather than all on the same day.
- The lengths of billing cycles can vary customer-to-customer, based on what cash flow the company needs and the creditworthiness of a customer.
- The practice allows the company to prepare and distribute statements on different days, versus having a glut of invoices that must be sent at the same time.
- Cycle billing enables companies to create a customized schedule that allows for easier tracking as to which customers have been billed, have paid, or have not paid.
Meaning of Cycle billing & Cycle billing Definition