What kind of billing cycle do you use?

[PiMPaRSeBiSh]

I have been thinking of switching my billing cycle to modernbill's anniversary method where all invoices will generate on the first of each month and also be due that day with prorated charges and refunds occuring rather then having everyone's renew date be the day they signed up. What are your thoughts of this billing method? Pros and cons.

[Chicken]

For a host, I'd think that this is much easier to manage (especially is protated charges and refunds are automated). For the client, I actually would prefer *all* my bills (hosting, water, gas, house note), to cycle on the 7th of each month. Reason being that I get paid on the 1st (maybe many people do, or get paid twice a month, 1st and 15th), and it just gives people a buffer between the time they get money and the time they have to pay.

I'm not sure if you can set the aniversary date or not, or if it has to be on the 1st?

[suppleSupport]

We recently switched to prorated billing in order to organize and standardize things more efficiently. We've also phased out yearly payments for new clients so that we can have a more steady flow of income.

[Chrysalis]

Anniversary billing I have learned the hard way is the better way to go, not only is it easier for bookeeping but it matches with how our traffic is tallied up.

Incidently does anyone know know how modernbill handles switching from the normal billing to anniversary I think I read somewhere its not a good thing to do.

[VanHost]

Chris,

Switching from anniversary to monthly mode in ModernBill will cause problems. The reason being, is that none of your customers were pro-rated when they entered the database. It is possible to switch the other way around, because then the existing customers would simply have their renewal date as the 1st and then new customers would be whatever their signup date was.

If you are dead-set on doing this, I would strongly urge you to manually re-add all the customer packages. I know it sounds tedious, but it will cause less troubles in the long run.

[PiMPaRSeBiSh]

This thread is 3 months old and can be closed. I no longer even run the hosting buisness.

[VanHost]

Yeah, sorry about that, I realized the date after I posted :(

[Chicken]

Yet it could help someone else...

::leaves it open for discussion ::

[PiMPaRSeBiSh]

Btw, I was going from monthly to anniversary mode, not the other way around. I know of the problems that would occur if I decided to switch back to monthly.
Also, you can set the date which packages renew. You can also set the proration dates.

[numaria]

For a host, I'd think that this is much easier to manage (especially is protated charges and refunds are automated). For the client, I actually would prefer *all* my bills (hosting, water, gas, house note), to cycle on the 7th of each month. Reason being that I get paid on the 1st (maybe many people do, or get paid twice a month, 1st and 15th), and it just gives people a buffer between the time they get money and the time they have to pay.

I'm not sure if you can set the aniversary date or not, or if it has to be on the 1st?


We second this...

[webtech]

We bill anniversary for the accounts. Makes it nice because they get invoiced the same day every month. We are then very generous and give them 7 days to pay after the due date.