Do You Double-Check Your Billing?

I once had an audit professor who said he and his wife diligently reviewed all of their receipts and found that about half the time, they were incorrect. Sometimes they were overcharged, sometimes, under. Imagine if that same logic were applied to your billing. Would you know? Do you take the time to reconcile your billing statements?

I’ll admit, there was a time about 10 years ago when I would hide if I knew my boss was looking for someone to reconcile bank statements. And even now, it’s not exactly my kind of fun. But, now that I understand the importance of monthly reconciliations, I’ll take the time to do it, if for no other reason than peace of mind.

Especially if you work with insurance companies and government entities, your billing is probably not exactly predictable. Sometimes, there may be delays for certain payments, and you’re only paid for part of a billing cycle. Other times, you may need to send other documentation before you receive approval. If you’re like my husband, you may have done an evaluation in July and have a billing person asking about it in December! The point is, it’s easy to lose track of what you’ve billed for versus what you’ve been paid. But, if you develop the habit of tracking your billing on a regular basis, you can keep your head above water. It’s as easy as:

1. Keep copies of your billing - bonus points if you create a spreadsheet with names, dates and amounts!
2. When you receive payment, compare the invoice to your billing records. Mark off payments received so it’s easy to see what’s still outstanding.
3. After 30 days (or a reasonable turnaround time for your type of billing), reach out to the payor with any payments you have yet to receive. The squeaky wheel gets the grease! And I shouldn’t have to remind you, this isn’t volunteer work ;).

Reconciliations are an important part of running your business, and can easily become habit. Like anything else, if you stay on top of it and do them regularly, it’s a lot easier than putting it off when you do have an issue. 

If you have any questions, feel free to contact me. And for further guidance on the business-side of your practice, visit my course at www.therapistfinance.thinkific.com !