Tracking Accounts Receivable

Hey everyone, I'm Joel Duncan with Therapist Consultants. Today let's talk about why tracking your accounts receivable is critical to your practice's financial health. Now whether you accept insurance or run a cash-based practice, it's essential to stay in control of your money. One of the best tools for this is an aging of accounts report. This report shows you which patients owe you money, how much they owe, and how long they've owed it. It typically breaks down outstanding balances into time categories. There's like less than 30 days, 30 to 60 days and so on. If you take insurance, you'll likely see balances in the zero to 30 day range, which usually isn't a problem since most insurance companies take some time to process. But once a bill passes 30 days, that's a red flag that needs attention. At that point, you need to drill down into the details. Has the insurance company rejected or delayed the claim? If so, it may need to be resubmitted. Did you receive payment, but you forgot to adjust the patient's balance? If so, update your records. Is the balance now the patient's responsibility? If so, you need to bill the patient and follow up. By running this simple report, you can avoid missing out on thousands of dollars in revenue. The long-term balance remains unpaid. The harder it becomes to collect. If you're in a cash-based practice, you might think it doesn't apply to you, but it does. Patients can still fall behind on payments, and maybe they missed a payment, forgot about a payment, assumed an automatic payment went through when it didn't. So even in a cash practice, it's a good idea to run this report at least quarterly to make sure you're not leaving money on the table. Small, unpaid balances add up over time, and if you don't track them, you'll lose income without realizing it. strong financial foundation starts with tracking your income. Whether you bill insurance or work with cash pay patients, running an aging of reports account ensures your hard earned money doesn't slip through the cracks. Stay on top of your receivables and that means you can focus on what you do best and that's helping patients without the stress of unpaid balances hanging over your head. If you're a therapist consultant's client, review your aging of accounts process with your consultant to ensure you're maximizing your collections and keeping your cash flow strong. If you're not yet a client, now is the perfect time to join us. No matter where you find yourself, today is the perfect time to start seeing growth. Therapist consultants gives you a complete customized roadmap to success from startup to retirement. I'm Joel Duncan and together, we can take your practice to the next level. See you next week.