Accounts Receivable Collection System Guide

This guide provides a systematic approach to improving accounts receivable (AR) collections for healthcare providers, particularly chiropractors. It outlines a step-by-step method to effectively manage and collect outstanding payments, emphasizing the importance of addressing AR to reduce financial stress. The process begins with printing an aged AR report, followed by a collaborative review with a collection assistant (CA) to identify the twelve most problematic accounts based on balance size, payment history, and security. The guide details the necessary steps for investigating these accounts, ensuring proper billing, and assigning collection tasks. It highlights the significance of daily monitoring of collection efforts and celebrates achievements in cash flow improvement. The author shares a success story demonstrating the effectiveness of this method, where a client significantly reduced their AR from $177,000 to $55,000 over two years, resulting in increased profitability. This document serves as a practical resource for practitioners looking to enhance their financial management practices.