Customer Accounting
An effective customer accounting system helps reduce bad debt, strengthens internal controls, improves cash flow, and supports the financial stability of the utility.

Customer Billing
Water and sewer bills are typically issued monthly. Billing may be handled in-house using the city’s computer system or purchased software, or it may be outsourced to a billing service. When a vendor is used, the city is still responsible for reading meters and providing accurate data for billing.

Smaller utilities often process and mail all bills at the same time each month. Larger systems may prefer cycle billing, in which meter reading routes are divided into cycles and billed on a staggered schedule. Cycle billing helps balance staff workload and provides steadier cash flow. Regardless of method, bills should be issued at roughly the same time each month to minimize customer complaints and help households budget for payments.

Accounts Receivable
As part of billing and accounting, cities should maintain accurate accounts receivable records. Billing totals and customer payments must reconcile with accounts receivable each month. One effective method is to maintain an open balance system, which tracks the outstanding balance on each account. This system should also include an aging schedule so that overdue accounts can be flagged for collection. Regular reconciliation ensures billing accuracy and supports timely collection of revenues.