Electronic medical billing software refers to a software which is used for entering data that are needed to file claims for medical services via electronic means. The software eliminates the risk of errors that used to be the number one reason for rejected claims in the former paper-based billing system. By checking errors, electronic billing software makes the billing process a lot easier and faster, and enables the medical personnel to spend more time dealing with the patients as well as to get reimbursed for their services faster. The use of electronic medical billing has simplified the billing process as well as data processing in many aspects. In addition to facilitating the billing job, electronic billing software can be also used for other important tasks including scheduling patient appointments, report writing, accounting, etc. saving a lot of time as well as money. The easy-to-use, reliable and highly accurate software system has significantly reduced the need for employees in the administration department which in turn increases profits of medical practices both directly and indirectly. The money that is saved in administration can be used to hire new healthcare practitioners and purchase new medical equipment and subsequently improve the quality of service, provide care to a larger number of patients as well as offer new medical services and technology to the patients. However, the overall financial benefits of the electronic billing software depend on the chosen software system. Many electronic billing software systems are available on the market but it is important to be very careful in the selection of the software system in order to maximize the savings and to make sure that everything runs smoothly. First of all, the chosen software needs to be in accordance with the HIPAA (Health Insurance Portability and Accountability Act) requirements which means that it has to protect the patients rights. Only then you can focus on the search for a software that meets your needs the most. There are two main types of electronic billing software system: client server and application service provider. The first one is considered more safe because the software is located in the medical practice but it is more expensive than Internet based application service provider. In addition, the latter does not require physical presence in the place where software is installed and enables access from other computers and mobile Internet devices from anywhere at anytime. However, it offers slightly less security than client server software system. In addition to deciding between client server and application service provider software systems, you should also make sure that the chosen software meets you specific needs and that there are not any hidden costs such as frequent upgrades.