Savvy business owners know they need to stay on top of their accounts receivable so they can get paid within a reasonable time period. Doing so optimizes their cash flow and keeps the business afloat. But the billing process can be work-intensive and time-consuming. One surefire way to make sure receivables are paid on a timely basis with less work is through eBilling.
The practice of eBilling means that you bill customers or clients using an electronic format. An eBill is typically generated from an eBilling system, sometimes even automatically. An eBill also includes a method by which the payer can remit payment using an automated process.
An electronic billing system integrates the billing and payment of invoices so that businesses and customers can easily and accurately transact business. The system assists with generating and sending invoices, accepts customer payments, and tracks data, merging it with business accounting systems.
There are a number of key benefits to using an eBilling system. With eBilling, businesses can:
Better manage cash and liquidity
Reduce staff time and operating costs
More easily reconcile payments against customer invoices and accounts
Influence customers to adopt
Customers benefit from eBilling, too, with:
An increased ability to take advantage of early payment discounts
Elimination of manual transcription of invoice data
Reduced staff, operating, and capital costs in the payables process
Reduced payment processing costs, since ePayments are cheaper than checks, credit cards, and other payment methods
Both businesses and customers alike benefit from an efficient system that takes the guessing and errors out of the bill payment process.
While eBilling utilizes an electronic billing system with payment options built in, eInvoicing is a simplified version of this process. Typically eInvoicing means creating an electronic file, such as a PDF, and attaching it to an email. Payers then print the invoice and send it in along with a check, or in some cases, they may arrange for an electronic funds transfer to pay the bill.
While still useful for some small businesses, eInvoicing lacks the real control and tracking features of an eBilling system. It’s possible that an eInvoice will sit in someone’s inbox for days or even weeks before the invoice gets paid, or worse, routed on to other departments. Plus, the data from an eInvoice must be manually transcribed into accounting systems, raising the very real possibility of errors.
Lost invoices, slow mail, accounting snafus, insufficient funds – these issues can make it difficult to manage receivables when businesses rely on eInvoicing. The eBilling process makes these issues vanish.
While many businesses employ eBilling for customer payments, it can also be used quite effectively for B2B transactions. In fact, if bills and payments are recurring, as on a monthly or quarterly basis, an eBilling system can make it easy for billing and payments to be transacted automatically, streamlining the process even further.
The Bill.com integrated invoicing, billing, and payment solution eliminates manual processing and allows your business to gain all the benefits an eBilling system offers. Further, it can make doing business with customers and other businesses a snap, keeping good working relationships intact. Give Bill.com a try by filling out the form below to see how your business can benefit from an eBilling system.