Accounts Receivable Clean Up
Accounts Receivable Clean Up refers to the process of reviewing and organizing a company’s accounts receivable ledger to ensure that it accurately reflects the outstanding balances owed by its customers. The objective of the clean-up is to remove any errors, inconsistencies, or outdated information in the accounts, and to reconcile the accounts with the company’s records.
This process involves verifying the accuracy of customer balances, identifying and correcting any discrepancies, updating customer contact information, and ensuring that all payments have been properly recorded and applied. By performing a regular accounts receivable clean-up, a company can improve its cash flow, reduce the risk of bad debts, and ensure that its financial statements are accurate and up-to-date.
What we do
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Verification of customer balancesThis involves checking the accuracy of the amounts owed by customers and reconciling these balances with the company’s records.
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Correction of discrepanciesAny errors or inconsistencies in the accounts receivable ledger are identified and corrected.
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Updating customer informationCustomer information such as contact information, payment terms, and credit limits are reviewed and updated as necessary.
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Payment applicationPayments are reviewed and applied to the correct customer accounts.
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Bad debt analysisThe accounts receivable ledger is analyzed to identify any customers who are unlikely to pay their debts, and appropriate action is taken to collect the outstanding amounts.
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Financial statement preparationThe accounts receivable clean-up process can result in the preparation of financial statements such as balance sheets and income statements that accurately reflect the company’s financial position.
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Implementation of best practicesThe accounts receivable clean-up process can also include the implementation of best practices for accounts receivable management to improve the efficiency and effectiveness of the process going forward.
Features & Benefits
By resolving outstanding claims and reducing the time it takes to receive payment, AR cleanup can improve a healthcare provider’s cash flow and financial performance.
Resolving outstanding claims and reducing the number of denied or delayed payments can increase a healthcare provider’s revenue.
By cleaning up AR, healthcare providers can get a clearer picture of their financial situation, which can help them make informed decisions about their future.
AR cleanup can streamline the billing process and reduce the amount of time and effort required to submit and manage claims, freeing up resources and allowing medical staff to focus on patient care.
By resolving outstanding claims and ensuring that claims are submitted correctly, AR cleanup can help healthcare providers stay compliant with industry regulations, such as HIPAA and ICD-10.
By reducing confusion and frustration associated with the billing process, AR cleanup can improve the patient experience and enhance patient satisfaction with the healthcare provider.