For starters, E-billing is short for electronic billing. Got that? Good! Switching gears, what is e-billing?
As the name suggests, electronic billing is the process of paying and receiving bills online. Do you know what this means?
It implies that e-billing allows you to bill your trading partners using an electronic format. You’ll need an e-billing system to generate an e-bill.
The question then becomes,
What is an e-billing System?
An electronic billing system integrates the billing and payment of invoices. That way, you can transact with your trading partners quickly and more accurately. The system allows businesses to generate and send invoices, accept client payments, track data, and merge accounting systems.
What Are the Benefits of e-billing?
Electronic billing offers an assortment of benefits, as outlined below.
Enhanced Customer Experience
E-billing allows your trading partners to access their billing info whenever they want and on their most preferred platform. The ripple effect is that clients don’t need to call customer care reps to find out about their bills, further improving the overall customer experience.
Of course, having e-billing software that allows your customers to pay bills at the click of a button means you can get paid on time.
Improved Cash Flow
One of the primary challenges many businesses face is collecting money owed to them within a reasonable time. Electronic billing allows faster payments, less stress, and defaulting. When you get paid faster, you have bigger working capital and improved cash flow. That way, your business has a better financial standing, enabling you to fuel growth.
Quicker Access to Bills
The best e-billing solution should allow you to store all your bills and related documents securely online. That means your clients can search, retrieve, and analyze their documents in a second for scrutiny.
Improved Working Conditions
Time is money, so they say. As a serious businessman, you don’t want to waste time. Electronic billing helps improve and simplify the billing process, allowing you to save time. E-billing software allows businesses to automate manual, tedious processes. That way, employees working in the account receivable department can direct their energies into more profitable activities.
Think of electronic billing as a way to help you make the most out of your employee’s time.
Improved Credit Control
Let’s face it. Credit collection is a headache, even for large international corporations. By having an electronic billing system, businesses can view the amount of money owed and the payment structure in real-time. Most importantly, an e-billing solution allows you to get notified when a customer opens and reads your invoice. And, with increased visibility, credit controllers can know when to act on a client who’s refusing to pay, further helping you avoid getting paid late and disputes.
Makes Auditing and Compliance Easy
The best e-billing software will ensure tax compliance through a seamless online record keeping. On top of that, you can search and scrutinize files quickly, making auditing easier and cheaper. Electronic billing is especially handy if you operate a business in states where the government makes it mandatory to comply with the VAT act. For instance, in Europe, the B2G invoicing requirements and EU directives will make it obligatory for all member states to implement electronic invoicing as defined in the Directive 2014/55/EU.
It implies that you have to use an electronic invoice if you operate a business in Europe. And, did you know that 90 percent of all invoices sent in Brazil are in electronic format?
Who Uses E-billing?
Electronic billing offers efficiency in several business departments ranging from accounting to customer care. The Accounts Receivable department is responsible for generating e-bills. The Accounts Payable, on the other hand, pays the bills.
What’s In an E-bill?
An e-bill contains all the information relating to a payment. These are
- Due date
- Payment date
And, because the bill is in an electronic format, it comes with a link that allows you access to the payment portal to view the bill and make the payment.
Is E-Billing the Same as E-invoicing?
No, e-billing isn’t the same as e-invoicing.
Electronic invoicing is narrower by definition and use. More specifically, e-invoicing involves sending invoices digitally, but without the payment feature. E-billing, on the other hand, allows for payments. In other words, the best e-billing software should allow you to view the invoice and submit an electronic payment.
How Should an E-billing System Integrate With your Business?
When scouting for an e-billing solution, be sure to look for one that’s up-to-date, easy to use, and secure.
It should also be convenient for your trading partners and, most importantly, feed your sales, marketing, and accounting departments with the info they need to make decisions that’ll spur business growth. Simply put, e-billing shouldn’t be offering a convenient platform for your customers to pay only. Think of it as a system that allows you to collect crucial data about your business.
How to Get an E-Billing System
You can partner with Unimaze, an online gateway provider, to give your business the ability to enjoy the benefits of electronic billing. We’re committed to providing e-billing solutions that work for any business model.
Our e-billing software is designed for businesses that want to stay on top of their accounts receivable and get paid within an acceptable period.
What are you waiting for?
Discover what e-billing can do for your business with Unimaze today!