How to Maximize Your Accounts Receivable
Making the most out of your accounts receivable is important. After all, that’s where your money is. Of course, accounts receivable is more than just taking payments. The other consideration besides the many aspects involved in this area of your business is the type of business that you run. For instance, lawyers have different needs than doctors. Doctors have different needs than other service-based business. Yet, all of these examples have the same basic accounts receivable problems, concerns, and needs. Here are some tips that all businesses can use to maximize their accounts receivable.
Prevent Billing Errors
Businesses don’t go out of their way to cause billing errors. You want to get paid just as much as your client wants an accurate bill. These errors can be manual errors or even just oversights. No one is perfect. Accidents happen. Here’s how you can prevent billing errors:
Invest in practice management software. Regardless of whether you are an attorney, a doctor, or an owner of a business, there is a practice management option that’s right for you. These programs help you complete your billing tasks in the same way each and every time. The software is designed specifically for your needs and it is available for every budget. Using this software helps minimize the possibility of human error in calculating amounts that are owed by your clients.
Verify Client Information. It’s hard to make sure that a client will get their invoice from you if their email or physical address is incorrect. You and your staff should verify both the email address and physical address with the client. You can also use the USPS website to verify mailing addresses.
Audit Your System
Auditing doesn’t have to be difficult. You can, of course, opt to work with an outside organization or you can take some small steps to audit your own information. If you are in a business that requires outside compliance checks, make sure that you keep that at the top of your priorities.
You can audit your system each time a client comes in for an appointment. Your front desk representative should ask for any updates to insurance, name, mailing address, cell phone number, work number, or any other pertinent information. If any of that information is different than what is in the system, it should be immediately changed. Do not wait to update this information. This is a very quick audit of your client’s information. It can be extremely valuable for your accounts receivable processes and procedures.
Also, make sure that you go through all of your data on a regular basis. Run reports on billing, past due amounts, and any other pertinent information that you want or need. This will help you determine what you have outstanding that you may have missed. You’ll know exactly what you need to follow up on.
Collect Payments Before the Appointment
If you’re a doctor or if you’re running a business that allots for payments, you can maximize your accounts receivable by collecting payments before the appointment. You should have a clear, well-written statement posted in your reception area that explains that payments are due before the appointment. This can help minimize delinquent accounts. If someone is unable to pay before their visit, they should immediately speak with your office or finance manager.
Your office staff should call clients the day before their appointment to confirm it and to remind clients that payment is due during their visit. This serves two purposes. First, it builds customer loyalty. This quick call says to the customer, “We care enough about you to remind you of this.” They appreciate that. Second, it also helps you know if your client will show up for your appointment.
Get a Free Professional Opinion About Your Accounts Receivable
You can get a free professional opinion about your accounts receivable from Attorney's A.R.M. With more than 30 years of experience, we understand the intricacies involved in accounts receivable in the legal, medical, and service-based corporations. We’re offering free process reviews to help business owners just like you refine their accounts receivable management. You can book this free, no obligation appointment here.
Don’t forget to check out our services. We help law offices, healthcare facilities, and businesses of all sizes meet the needs of their customer. Attorney's A.R.M. helps you scale by allowing you to focus on your craft.