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What is a Billing Cycle?

A billing cycle is the frequency with which a company creates and sends invoices for the goods or services rendered during a time period.

A billing cycle is usually a month long, and may begin at the first day of the month and end on the last day. This varies depending on the structure of the business and the systems they have in place to regulate their cash cycle.

A bill or invoice will be sent out to customers or debtors from whom the business can expect payment for goods or services rendered during a specific time period.

A customer of debtor is usually expected to settle the amount due before the next billing cycle, or “past-due” amount will appear on the next bill, usually accompanied by a late charge penalty.

Keywords: cycles, billing, invoices, bills, past-due amount, late charges, cash cycle,