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.