My friend Susan Baylis at Medical Account Solutions lays out some important points of lost profits in medical office billing processes in her blog “Maximize your medical receivable with a few simple steps”. It’s important in all types businesses to have solid processes in place for billing as well as collecting. Part of cash flow management is having proper training and support in place so that the staff can be successful in protecting precious profits for your business.
A well documented and executed billing and collections process will also help your clients pay you on time. If you are in a business that gives terms, like Net 30, it’s also important to call early when payments are not received by the due date. Often a polite phone call asking for the status of a payment can uncover missed invoices and expedite payment that otherwise may have gone unnoticed for months hurting your company’s cash flow.
As a business owner, it’s important to have cash flow management strategies in place to support your bookkeepers and accounts receivable employees so that they can help you in your business’ success.