Cleaning up A/R
Cleaning up A/R
I am 2.5 years into a startup and we haven't been so good in the collections department. My current A/R is over $120K (some of it is just write offs, professional courtesies etc that are not collectable while others would in theory be collectible if it weren't too old) We have updated our policies and are doing better with collections now. I wanted to know is there any easy way to "reset" my A/R from a specific day say January 1 and track all new A/R from that day while still seeing the old A/R. In other words I want to track my staffs collection rate from January 1st but I don't want to just write off the old A/R but I don't want to have it counted in the new cycle of reports.
Re: Cleaning up A/R
I am not sure if this will work for you. Create 2 data bases,
one for Dec 2015 and before that has all the account receivables
an start a new database for Jan 2016 and after, but this database will have all accounts receivables set at 0, (just zero all the balances)
I had to do that when I purchased a practice and I purchased the account receivables too.
We used 2 computers, a separate laptop had the old accounts/database, and a regular desktop for the new services/database
when you receive payments for services done in 2015 and before, post the payment in the old database, on the laptop
Post new services only on the desktop, and when you receive payments for services done in 2016 or after, post the payments in the new database, on the desktop
When you mail your statements, ad a small notice, inform your patients that you have just updated your software, and that they will receive 2 statements, one for services rendered in 2015 and before, and another statement for services rendered in 2016 and after, and they owe the combined balances.
Slowly, there will be no need for the old database, but sooner or later you have to make a decision about the bad debts,
one for Dec 2015 and before that has all the account receivables
an start a new database for Jan 2016 and after, but this database will have all accounts receivables set at 0, (just zero all the balances)
I had to do that when I purchased a practice and I purchased the account receivables too.
We used 2 computers, a separate laptop had the old accounts/database, and a regular desktop for the new services/database
when you receive payments for services done in 2015 and before, post the payment in the old database, on the laptop
Post new services only on the desktop, and when you receive payments for services done in 2016 or after, post the payments in the new database, on the desktop
When you mail your statements, ad a small notice, inform your patients that you have just updated your software, and that they will receive 2 statements, one for services rendered in 2015 and before, and another statement for services rendered in 2016 and after, and they owe the combined balances.
Slowly, there will be no need for the old database, but sooner or later you have to make a decision about the bad debts,
Re: Cleaning up A/R
It sounds like what you are saying will work. The only problem is that it sounds like too much work for my already busy front desk. I was hoping for a simple solution but that doesn't seem possible. It might be easier if there was a way to write off bad debt but still have access to it so if a pt surfaces after a few years we can try to collect?
Re: Cleaning up A/R
Simple Option
After you write it off for each patient, you can create a "popup" in each patient chart where you can write the amount that was written off and to request payment if the patient shows up again. So If the patient shows up and your employee access the patient file, the popup will pop and you can try to collect again.
We do that for all patients that were sent to collection.
After you write it off for each patient, you can create a "popup" in each patient chart where you can write the amount that was written off and to request payment if the patient shows up again. So If the patient shows up and your employee access the patient file, the popup will pop and you can try to collect again.
We do that for all patients that were sent to collection.