Accounts receivable collection at many companies is still done the way it was in the green eyeshade era, leaving a great deal that can be done to improve results. Client intake, billing, receiving payments, and collections are all important parts of your accounts receivable management. Best Practices in Accounts Receivable Process Collection. Accounts Receivable (AR) is defined as the money owed by customers to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. The MGMA estimates that, on average, U.S. medical practices are failing to collect 25% of the money they’re owed for treating patients. Hereafter, I greatly paraphrase an article of mine published last as a resource to Accounts Receivable Process Collection professionals by The Accounts Receivable Network. Power Your Practice understands the challenges medical practices are facing in accounts receivable and is here to help. Like many repetitive processes, collections is a “production” operation, and can be “re-engineered” to improve cash flow, reduce DSO and slash the disputes that result from letting unpaid accounts go stale. Article featuring account receivable management best practices to keep the business up and running. The article was titled: Ten Tips for Billing in a Recession. There are four fundamental best practices that every business should implement to expedite collections of past due accounts receivable. I recommend the book to anyone who wants to improve cash flow and reduce bad debt loss. Praise for Accounts Receivable Management Best Practices An excellent reference tool on how to manage the accounts receivable process for any company. Best Practices for Accounts Receivable Management for 2017 Accounts receivable is an important part of your business.

1. Ask for the money: You provided a product or service and your customer is obligated to pay for it. The use of real-life examples makes the concepts easy to understand. Credit, Collections and Accounts Receivable; Best Practices To assess, assemble and implement the Best Business Practices for the Credit Risk, Collection and Management of Accounts Receivable a number of critical factors need to be taken into consideration. One of the best places to start is with your accounts receivable management. That means $125 billion is left on the table every year. —Michael E. Beaulieu, Senior Vice President, Finance Cardinal Health Rather … We all want to ensure that our businesses run better each year. even a profitable firm can be forced to close by Best Practices for Accounts Receivable Collection Personalizing the process reaps benefits by Dennis Niven The cash-flow crisis resulting from inadequate accounts receivable collection practices in a growing business is generally the greatest threat the business will ever face.