Billing Cycle

A billing cycle is the repeating period that each invoice covers and the rhythm on which you send them. A monthly cycle means every invoice covers one month of work or service and goes out on a predictable date—the 1st, the last business day, or the anniversary of the contract start. Weekly, biweekly, quarterly, and annual cycles work the same way at different intervals.

The mechanics involve two dates worth keeping straight: the cycle close (when the period ends and charges are tallied) and the invoice date (when the bill actually goes out, often the same day or a day or two later). For retainers and subscriptions, the cycle usually bills in advance—January's invoice goes out January 1. For hourly or usage-based work, it bills in arrears—January's hours are invoiced February 1. Clients who join mid-cycle are typically prorated for the partial period.