Dentaltown August 2015 - (Page 84)

practice management feature Establishing an Accounts Receivable System by Sandy Pardue T he most effective way to handle money management is by implementing a step-by-step accounts receivable (A/R) system. It's great to produce high numbers, but it's a waste of time if you aren't getting paid. If you fail to establish a solid A/R system, you will lose money through nonpayment, late payments and staff time spent on collection efforts. The fi rst action is to clearly defi ne when and how accounts are going to be paid, as well as the payment options you will offer. All of the actions within the A/R system require written policies and procedures to give your team members direction on how to carry them out. You will need to appoint a fi nancial coordinator whose main purpose is to collect payments for the dentistry that is delivered. This person should be informed of the practice's monthly collection goal of 98 percent to 99 percent. If your practice is not currently collecting at least 98 percent to 99 percent of adjusted production, the problem is most likely in one or more of the following areas. Financial policy Your practice should establish a firm financial policy. It should be in writing and include payment options (see the section below). Post it on your website and give it to new patients and existing patients making financial arrangements. Payment options All of the payment options you offer should be listed on a professional financial arrangements form so patients can choose 84 AUGUST 2015 // dentaltown.com Studies have shown that collections come in more quickly if statements are sent between the 25th and 28th of the month. Some people tend to pay the monthly bills that come in first. how they want to pay. Each option should be clear and easy to understand. * Pay as you go: The patient pays in full using cash, check, or credit card on all visits as treatment progresses. * Easy pay-credit card payment option: Three equal installments are paid by credit card. One-third of the payment is due at the first appointment; one-third is due 30 days later; and the remaining one-third is due 60 days from the initial appointment. * In-office financing: Interest-free for up to 90 days, based upon credit approval. * Advance-payment discount (receive discount): Five percent bookkeeping courtesy discount for payment in full by cash or check at the start of treatment, resulting in a one-time payment. * Major service-two-payment option: A two-payment http://www.dentaltown.com

Table of Contents for the Digital Edition of Dentaltown August 2015

On Dentaltown.com
HOWARD SPEAKS: Do You Need to Retire Your Views on Retirement?
PROFESSIONAL COURTESY: Product Perfection is Not Guaranteed
Continuing Education Update
The Chasolen Effect
Poll
5 Strategies for Maximizing New-Patient Referrals
Pediatric Dentistry, Parents, and Spoiled Kids
Finding the Hidden Treasure: Prevention = Treatment + Motivation + Compliance
The Three Dimensions of Endodontic CBCT: Treatment Planning, Patient Understanding and Referral Relationships
Implant Drivers and Driver Tips for Single-Torque Wrenches
Are the Top 1 Percent Safe?
Debt-Repayment Basics for Dentists
A Creative Approach to Retirement Funding
Diode Use in Orthodontic-Related Procedures
Thin Implants
Stick With It: A Systematic Approach for Bonding CAD/CAM Restorations
Product Profile: Uncomplicate Business
Establishing an Accounts Receivable System
Yoga for Dentists
Practice Solutions: Ivoclar Vivadent
Ad Index
Why Dentists Need to Be Mobile-Ready
Rehabilitation Case with CAD/CAM Design and Excellent Results
Industry News
Product Profi le: LocalMed
Dentally Incorrect

Dentaltown August 2015