Currently, most organizations strive to sell their goods or services with immediate payment and, as practice shows, sometimes they have to work through loans, that is, deferred payment. This leads to the inevitable occurrence of receivables, which today exists in the settlement system. Therefore, it is on the part of the organization that the initial attention should be paid to receivables, since a significant influence on the turnover of capital invested in current assets, and, consequently, on the financial condition of the organization.
Accounts receivable are the most dynamic part of current assets, and their structure varies depending on the sector of the economy. A high proportion of receivables in the organization’s asset structure can reduce its financial condition, namely liquidity and financial stability, as well as increase the risk of financial losses. Therefore, outsourcing accounts receivable services are the best idea to help in managing the receivables, which will increase the economic condition.
The Following Are Tips to Enhance Account Receivable in Your Medical Practice
1. Install a debt collection system
To enhance the accounts receivable in your medical practice, you need to develop a debt collection system. The most common ways of influencing debtors to pay off debt are sending letters, phone calls, personal visits, selling the debt to particular organizations.
2. Accumulate information about the state of affairs of customers of the enterprise.
3. Check whether there are reconciliation statements and letters in which debtors acknowledge their debts. This will help the reality of collecting debts from buyers and obligations of a dubious nature. For debts unrealistic for collection, following the established procedure, form a reserve for doubtful debts. If there are justifying documents, pay off bad debts by writing them off to the losses of the enterprise as receivables for which the limitation period has expired. To manage accounts receivable, it is necessary to monitor the implementation of contractual obligations more strictly.
4. Compile a payment calendar by a quarter
It is proposed to develop such a type of payment calendar as the “Collection calendar of receivables.” For current receivables, payments are included in the calendar in the amounts and within the time stipulated by the relevant agreements (contracts) with counter-parties. For overdue receivables, these payments are included in this planning document based on the prior agreement of the parties.
5. Monthly reconciliation of settlements
To show the amount presented and paid for all enterprises to control receivables.
The main aim of the enhancing of receivables is the development of a lending policy for customers of an organization aimed at increasing profits, expediting settlements, and reducing the risk of non-payments. But, it can be challenging to carry out this task without the help of accounts receivable management services. You can, therefore, opt for the accounts receivable management services in India, which will aid in minimizing the debts while increasing the revenues.