Billing cycle
What is a billing cycle?
A billing cycle is the regular period of time between one bill and the next, during which charges for a subscription service or product are accumulated and then invoiced. For example, a billing cycle might run monthly, quarterly, or annually, depending on the service. It defines how often a customer needs to pay in order to keep using a product or service.
Why is the billing cycle important?
The billing cycle is crucial for both customers and businesses. For customers, knowing the billing cycle helps manage personal budgets and avoid missed payments. For businesses, a clear billing schedule ensures steady cash flow and predictable revenue, while also reducing confusion or disputes over when payments are due. A well-defined billing cycle also helps build trust between businesses and customers by setting clear expectations around when charges will appear and when services will renew.
