3
1 Comment

Billing on the 1st of the month

Why do some businesses bill on the 1st of the month?

Also curious of different peoples preferred billing schedule and why

on October 3, 2020
  1. 1

    Cause it's simple.

    Honestly I feel the progression has been:

    • Bill everyone on one date.
    • Have several billing cycles to choose from (big companies just needed to split the process for performance...)
    • Bill on the customers "birthday", this removes pro-rata calculations, simplifying billing for anything that has a period charge.

    Sometimes the change date for bigger financial institution is claimed for the customers to be able to navigate their finances better.

    In some contexts companies set it up on the common/mandated payment date for salaried employees.

    Do you have some special contexts for the users? frequency? fixed amount per period? monthly period?...
    The more variable the pays the more it matters to have some flexibility I believe... like pay per usage that can very from 0.01$ to 10,000$ monthly like cloud services... or if you do b2b, the more you go for larger companies the more they require to manage their pay dates...