A billing cycle is the period of time between one statement date and the next for recurring products or services offered by one business to another or a customer.
Typically, billing cycles are established each month. The sort of goods and services provided determines the cycle’s duration. It directs businesses’ client billing practices and supports internal departments’ operations.
Billing cycles can be used to refer to subscription services, utilities, and more, despite the fact that they are most frequently used to represent the intervals between credit card bills.
Although it’s not always the case, some businesses start the billing cycle on the day the account is opened. They could decide to use a standard billing cycle for all accounts in particular circumstances. In this situation, they will be charged proportionately based on how much time transpired until the start of the subsequent billing period.
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