I've setup my billing so everything is expected to be paid before service is provided (prepaid). I send invoices in advance of a service cycle and they are due by the beginning of the service cycle. Early on, I convinced myself this was a good idea so I would never have to deal with collections and it seemed fair.
I'm working on switching billing systems, and the new system does not really operate that way. This has me wondering if my method is really a good one, or if there are good reasons to bill at the start of a service cycle. I've gone through my bills and others I have available to me, and very few actually bill in advance of a service cycle. Is there a good reason to avoid prepaid service or that companies tend not to do it? -Chris
