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Bill

The most important terms in time management

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What is a Bill?

A bill, also known as a bill of exchange,  is an order that is used mainly in international trade. It obligates one party to pay a fixed amount of money to another party at a given date.

A bill of exchange operates in a similar manner to a promissory note or a check. Bank or individuals can draw a bill of exchange, which can be transferred via an endorsement. That means that a party can be bound to a third party that was not present during the creation of the bill.

Types of Bills

There are two types of bills:

  • Trade draft: It is issued by an individual to another party.
  • A Bank draft: Banks use this type of bill to entities or individuals.

How a Billing Works

To understand how billing works, it is important also to know how it is issued. There is no standard method of issuing. However, it is issued on the premise that payment will be made in future. In business, it is important to assess the creditworthiness of an individual before accepting a bill of exchange.

Bills in everyday use

A bill of exchange is recognized as legal proof. In case one party dishonors an agreement, a bill of exchange will help you get respite in a court of law.

Manage Bills Better with zistemo

zistemo platform allows you to see your cash flow and manage your bills using it. If you do not know how to start with your billing and expense tracking, zistemo software will help you a lot. Sign up today and begin proper management of your bills.

You can learn more about accounting and billing by going here: Billing Software, Double Entry Bookkeeping and E-Invoicing.

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Related words

Employee productivity

What is employee productivity? Employee productivity is a metric that is calculated based on the amount of output on a project versus the amount of time it takes. It can also be measured against a standard or “base” of productivity for a group of workers doing similar work.

E

Assets

What are assets? Assets are anything available to meet commitments or offset debts and add financial value to a business or service. It may be money in the bank, investments, property or possessions.

A

Gross Income

What is Gross Income? As a concept, gross income is exactly what it sounds like: the total of all sources of “gain” or revenue, before any considerations of deductions like expenses or taxes.

G

Accounting Year

What is an Accounting Year? An accounting year is annual financial reporting period in which company organizes its financial data. It is useful when you are running a business. Potential shareholders analyze the company’s performance through its financial statements.

A Accounting system Accounting year

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