Billing Cycle

A billing cycle refers to the regular interval at which bills are issued for goods sold or services rendered. This cycle is typically set on a monthly basis but can vary depending on the service agreement or business practice. During a billing cycle, all transactions related to the purchase of goods or utilization of services are recorded and accumulated. At the end of this period, a statement is generated and sent to the customer, detailing the charges incurred, payments made, and the outstanding balance, if any.

The start and end dates of a billing cycle are predetermined and consistent for each billing period, allowing customers to anticipate when they will be required to make payments. This systematic approach helps both the service provider and the customer manage their finances more efficiently, ensuring timely payments and better cash flow management. For businesses, understanding and managing billing cycles is crucial for maintaining steady revenue streams and for providing customers with clear, timely information about their financial obligations.