Understanding Electronic Billing and Invoicing
Electronic billing, also commonly known as e-Billing, is the process that companies often use to receive payments quickly and efficiently.
Instead of sending paper-based bills, companies can send electronic bills and receive payments directly online. It’s a fantastic way for businesses to save time when processing payments, while also reducing their operational expenditure.
e-Billing is a process that companies use to receive bills from third parties. For instance, instead of sending a paper-based invoice, companies can send an electronic bill to their debtors, and receive payments online in their accounts.
An e-bill can be sent through a portal, or through email. It can also be uploaded as an electronic document, often as a PDF file. This makes it easy for the company’s debtors to first review the bill before they release payment.
In most cases, e-bills are usually created by financial or accounting software. It is then sent to the payer. The process for e-Billing is fast and efficient, and helps companies save a considerable amount of money when compared with paper-based billing.
Today, e-Billing is a key component used by accounts receivable as well as accounts payable departments. E-Billing and invoicing makes it easy for such departments to process payments and track receivables and payables.
E-Billing offers a plethora of advantages to businesses, including:
Traditional billing was highly reliant on paper-based billing and the use of checks. This had its own problems, since there was no official system and storage or retrieval of bills.
With e-Billing and invoicing, companies can easily store bills in a centralized repository, and retrieve them whenever required.
While the two are often considered the same, there are some key differences that you should know about. E-Billing is the process of sending bills and offering customers the option to pay as well.
On the other hand, e-Invoicing simply refers to sending invoices digitally, but the payment feature isn’t integrated within the system. There are all-in-one payment solutions available, such as AP automation software.
An average e-bill looks very similar to physical bills. In fact, it’s simply a digital representation of a physical bill, often submitted in PDF format. They contain key information including:
In most cases, e-bills also contain a link that payers can use to quickly settle the bill.
Using SoftCo eBilling, you can reduce AR costs, decrease AR payment days, and automate customer invoice issuing directly through the eBilling portal. SoftCo eBilling is an excellent portal that lets you capture signed PODs to confirm acceptance of goods, onboard new customers, and offers self-management features to reduce the burden on your AR teams.
You can also review reports and analyze accounts receivable days to identify how long it takes to settle debts on average. This can help you improve cash flows and identify key blockers. More importantly, you can also securely access customers’ billing documentation, review invoices, statements, and proof of delivery, all through a centralized portal.