Revenue Cycle

What is a Revenue Cycle?

The revenue, or sales, cycle is the process of converting a sales order into revenue. The revenue cycle begins when a prospective customer is first acquired, through actual sales purchase, continuing with the establishment of the customer relationship. The revenue cycle has two phases: #1. Physical phase: transferring the product or services to the customer and #2. Financial phase: closing the deal and receiving payment for the product or services. Revenue cycle performance affects the business’s overall performance. Underperforming areas may be determined by analyzing revenue cycle performance.