Telephone billing system is a software developed for telecommunication service providers which helps them in calculating customer bill easily. It not only calculates customer bill but also stores their customer details in a database. Earlier there was a manual system which required registers to store each and every data and bill calculation was also difficult. It also caused errors and redundancy. It was difficult to modify the details and the data stored was not secure. So there was the need for this system which could automate all these tasks. It has the centralized database that could store all the details. The customers are provided fast service with billing report where they can get a record of each and every call. It improves the efficiency of billing procedure. Through this system, data can be easily retrieved which was not possible in earlier system.