3 Reasons to Switch to a 28-Day Billing Cycle
Key Takeaways
- Billing on a 28-day cycle results in 13 billing periods annually, offering more revenue opportunities.
- Daily billing under a 28-day cycle enhances cash flow and saves time for businesses.
- The 28-day cycle simplifies proration, improving customer relations and service clarity.
- Clear communication from the sales team about the billing cycle ensures smoother operations and customer satisfaction.
Transcript
Speaker: What’s up guys?
In this video, I’m gonna give you three reasons that you should be billing your customers on a 28-day cycle instead of every month.
Reason number one: If you’re billing your clients on a 28-day cycle, you’re gonna get 13 billing periods a year instead of 12. The last time I checked, 13 was more than 12, and you ain’t leaving money on the table.
Reason number two: It allows you to bill your customers on a daily basis. This will save you a ton of time and increase your cash flow. Who doesn’t want more of that?
Reason number three: It makes it easy to prorate your customers. Alright, a pro tip is to have your sales team talk to your customers about this up front. Just let them know they’re gonna get 4 services in a billing period, and you’ll set yourself up for success.
Alright guys, so that’s 3 reasons you should be billing your customers on a 28-day cycle. I hope this video helped.
FAQs
Why should businesses switch to a 28-day billing cycle?
Switching to a 28-day billing cycle provides 13 billing periods annually instead of 12, increasing revenue opportunities without leaving money on the table.
How does a 28-day billing cycle improve cash flow?
A 28-day billing cycle allows for daily billing, which streamlines the process and significantly boosts cash flow efficiency for businesses.
What is a key advantage of billing customers every 28 days?
One major advantage is the ease of prorating services, allowing for clear communication and fewer disputes with customers when services are adjusted.
How can businesses set up a successful 28-day billing cycle?
To ensure success, businesses should have their sales team inform customers upfront about receiving four services each billing period, setting clear expectations.
What is the benefit of having 13 billing periods per year?
With 13 billing periods per year, businesses can potentially increase their revenue as they have one additional billing cycle compared to a traditional monthly billing system.
