Automate Your Accounts Receivable Management Process
The account receivable management are very much needed to monitor and pursue the collection of payments from sponsors where payments are past due. The received payments and the explanations of benefits from the client are posted into the database.
Online, October 15, 2013 (Newswire.com) - SUMMARY
Want to approach clients once in a blue moon and remind him about his outstanding payments, Hence will feel embarrassed each time while talking to him about the subject. However if this is part of the normal terms and conditions of r organization, the client anticipates it well in advance and will be prepared with a cheque. Accounts Receivable Management or otherwise termed as "Collections" is the art of keeping track of how much credit the company has given its clients/customers and when can they receive it. It mainly includes an amount that a customer owes to the company regarding the sale of any product or service. So, Accounts Receivable Management is an extension of Customer Relationship Management. How a company applies this in their practice and procedures is based on the characteristics of the organization.
TRACKING ACCOUNTS RECEIVABLES
A Medical Billing Outsourcing organization must be in a position to track accounts receivables. This includes listing of all open invoices, earlier dues, and generation of monthly statements to customers. An aging of receivables is used to collect overdue payments.
There are software platforms, which allow the organization to collaborate for the benefit of the customers by providing one bundled payment reminder. This entitles the customer to view all of his open invoices from several vendors in one location and provides a quick link to pay each vendor. In case of any clarifications, this software enables the customer to ask a question to that particular vendor. The vendor is immediately notified and gives a quick reply.
The collection process is the art of understanding the customer better. This gives insights into what buttons to push to collect the payment.
AGING REPORT
The most common tool to measure the efficiency of the Accounts Receivable team is the Aging Report. This report shows the details of the amount that is due to the company and is broken down into different time periods - 0 to 30 days' time, 31 to 60, 61 to 90 and more than 90 days' time. An Aging Report which has less than 5% of the total outstanding for more than 30 days is considered very efficient.
CUSTOMER VALUATION
Always value your customer interaction and never blow it at the end. Even though, the Accounts Receivable Department's key focus is payment collection, it remains everyone's job to encourage strong customer relations. While it should have been carefully managed your customers through the sales and account management processes, your poor collection interaction should never ruin that positive practice. Many customers appreciate vendors who take this customer-first approach.
CONCLUSION
To conclude, take advantage of every opportunity where they have to interact with your customer. We all know the cost of getting a new customer is far more than that of retaining an existing customer. Intelligently managing your receivables from a customer-centric point of view will not only enable to get your payment faster, but will also bring more loyal customers.
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Tags: Accounts Receivables Management, data entry outsourcing, Eligibility Verification, Medical Billing Experts, outsourcing services
