E-billing (also known as electronic billing) is a method of paying and receiving bills online. All the invoices and bills are generated digitally by software applications and computers. Not only e-billing includes the generation of e-bills, but also the system that enables clients to pay for these bills digitally (electronically).
Accounting and financial software tools generate e-bills automatically. Then, they forward e-bills to the payer by email or a web-based portal. The e-billing and e-payment portals usually allow the payer to get copies of their electronic bills. E-billing is an essential part of modern finance. Both accounts payable (AP) and accounts receivable (AR) departments use it every day. That is to maintain workflows and decrease reliance on paper bills.
What are the benefits of E-billing?
Take a look at the main benefits of e-billing:
- Affordable prices of delivering bills to clients;
- Stronger security than paper and snail mail;
- Opportunity for automatic payments;
- Rapid payment delivery via ACH.
Examples of E-billing in action
eBilling is most profitable for merchants that send recurring bills to clients. For example, a utility company charges clients for power bills monthly. Instead of bothering with paper bills and snail mail, the utility company can send an eBill. It will allow the clients to speed up the payment process and accomplish the payment online.