Which billing system describes mailing statements at certain times of the month based on an alphabetic breakdown of accounts receivable?

Cycle billing accurately describes a method in which statements are mailed out at specific times of the month, segmented according to an alphabetic arrangement of accounts receivable. This system helps to manage accounts more efficiently by distributing the workload of processing payments and inquiries across the month. Each group receives its bill on a set schedule, which can improve cash flow and make the billing process smoother.

For instance, in a practice utilizing cycle billing, accounts starting with letters A through F might receive their statements in the first week of the month, while those with G through L would receive theirs in the second week, and so on. This organization helps reduce the peak periods of billing-related tasks, helping staff to allocate time effectively and decreasing confusion among patients regarding billing cycles.

Other billing methods do not employ this systematic approach based on alphabetical order. Flat billing typically involves charging a uniform fee irrespective of services rendered, while progressive billing refers to incremental billing based on milestones or progress in services delivered. Monthly billing means sending out statements once a month without any specific breakdown, which does not leverage the benefits of dividing accounts alphabetically as done in cycle billing.