Any advantage of Pro-rata billing?

[bandboy]

I was setting up WHMCS for one of my friends and found they have pro-rata billing option in the script.

I thought over this but couldn't decide if it really is a good option or billing technique?

 

[Lesli]

It has its good side and its bad side.

On the good side, all your clients are billed on the same day / same cycle. No wondering about "when is such-and-so's next bill due": if they're paying monthly, it's due on the first, same as everyone else's.

On the bad side, your cash flow is once again fixed: high at the end/beginning of each month, with a 28-day dry spell in the middle. Also, if you get a client who wants to rearrange their billing date so that it falls on, say, the 10th of each month, to make things easier for them, you might not be able to accomodate them unless they're billed in a separate manner from any other client.

 

[bandboy]

It has its good side and its bad side.

On the good side, all your clients are billed on the same day / same cycle. No wondering about "when is such-and-so's next bill due": if they're paying monthly, it's due on the first, same as everyone else's.

On the bad side, your cash flow is once again fixed: high at the end/beginning of each month, with a 28-day dry spell in the middle. Also, if you get a client who wants to rearrange their billing date so that it falls on, say, the 10th of each month, to make things easier for them, you might not be able to accomodate them unless they're billed in a separate manner from any other client.

hmm...Since the billing is automated, having clients billed on different dates is fine, since its all automated and we do not have to keep track of payment due dates otherwise.

I guess it is better to NOT have pro-rata option for my friend's site then. Its not about dry spell but more of client getting billing dates adjusted as per their preference and requirements. Moreover it keeps billing department occupied throughout the month rather than overloading them during certain days otherwise.