Definition
A billing cycle is the regular interval at which a business issues invoices for ongoing services, such as weekly, monthly, or quarterly. Each cycle covers a defined service period that is stated on the invoice. Consistent billing cycles make revenue predictable and let clients plan their payments.
Also called: Billing period, Invoice cycle
Billing cycle in practice
Align the billing cycle with the service period and the client's payment process. Monthly billing on the first of the month is the most common pattern for retainers and subscriptions.
Frequently Asked Questions
Should I bill in advance or in arrears?
Bill in advance for subscriptions, retainers, and access-based services. Bill in arrears for usage-based or hourly work where the amount is not known until the period ends.