Aging of Accounts Receivable
September 2023
The heartbeat of your billing management is your accounts receivable (A/R) – the amount owed to your practice for services rendered but not yet collected. It embodies the overall “health” of your practice’s billing management and ability to efficiently collect payments in a timely manner.
Timing is crucial to a healthy cashflow. The older an invoice or insurance claim becomes, the harder is it to recover.
Most practice management software includes a standard accounts receivable report that breaks down outstanding balances by age – typically by increments of current, 30+ days, 60+ days, 90+ days, 120+ days, etc. Understanding the aging of your accounts helps you monitor and manage accounts effectively while also providing insight into the effectiveness of vital billing areas such as insurance follow-up, treatment estimates, and collections policies.
There are 3 keys to A/R monitoring:
Run your A/R report every month;
Use month over month data to help guide your understanding;
Use A/R data to inform process, workflow, and policy changes.
But what does a healthy A/R look like? Watch our video!
Do you need help getting your accounts receivable back on track? Dental Billing & Consulting Professionals provides tailored consulting services to meet your specific needs. Call or text us any time at (860) 435-7344 and our initial conversation is always at no charge.