What Is Billing Cycle?
The recurring interval between invoice dates for a customer or account.
Detailed Explanation
Common cycles are monthly, quarterly, or annually. Aligning billing cycles with revenue recognition simplifies close processes.
Example
A SaaS company invoices all enterprise clients on a monthly billing cycle starting the first of each month.
Why It Matters
Consistent cycles make cash flow predictable and reduce missed invoices.
Related Resources
Related Accounting Basics Terms
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