Electronic Billing System
E-billing is a paperless approach to sending invoices and processing customer payments via the internet. E-billing is made possible by an electronic billing system or accounting software with embedded capabilities in their core systems that generates and sends bills to customers, accepts payments and tracks related data. Among its benefits: E-billing can increase invoice accuracy, accelerate the billing process and improve cash flow.
What’s an e-bill (electronic bill)?
E-bills are electronically generated and delivered invoices requesting payment for products or services rendered. They replace paper invoices created manually and sent via the U.S. Postal Service. E-bills typically contain the amount due, payment terms, a purchase order number and a link to a secure payment portal, where customers can pay their bills online using a credit or debit card, PayPal, ACH transfer or other payment method.
What’s an e-billing system?
An electronic billing system integrates several types of software that are involved in the billing and payments process. However, e-billing does not necessarily require an electronic billing system — ERP systems can provide functionality as well. The system requires an online interface to communicate between a company’s billing system and its banks, and between the company’s customers and their banks or bill-paying systems.