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The Importance of Staying on Top of Accounts Receivable for Your Dental Practices

Providing a great patient experience is only possible when your dental practice is running smoothly behind the scenes, and accounts receivable is one part of the picture. Dental practices must stay on top of their accounts receivable in order to ensure continued financial health and profitability. What are some of the reasons why you should prioritize this part of your business??

What Are Accounts Receivable?

?Accounts receivable refers to the outstanding balances owed by patients for services rendered. In dental practices, this typically includes things like copayments, deductibles, and fees that are not covered by insurance. Effectively managing these receivables is crucial for maintaining steady cash flow and ensuring that you are not waiting for large balances for long periods.?

What Happens When You Neglect Your Accounts Receivable?

?Failure to stay on top of accounts receivable at your dental practice can lead to many different problems, including:

1. Cash Flow Challenges: Delays in getting payments from patients can create cash flow gaps, which will affect your ability to cover operational expenses, purchase supplies, and invest in new equipment.
2. Strained Patient Relationships: Poor management of your accounts receivable can strain patient relationships. Many patients are prepared to pay upfront and dislike lengthy billing cycles or repeated payment reminders. Billing issues can also decrease patient trust in your practice.
3. Decreased Practice Growth: Unresolved patient balances can restrict a dental practice’s growth potential. When you don’t have the resources that you need, it can stop you from recruiting new skilled staff or make it harder to invest in new technology.

How Can You Improve Accounts Receivable at Your Dental Practice?

1. Establish Clear Payment Policies: Clearly communicate payment expectations to patients before treatment. Providing written estimates and discussing payment options upfront can prevent misunderstandings later and ensure patients understand their financial obligations.
2. Regularly Review and Follow Up: Come up with a system to review outstanding accounts regularly so that you aren’t letting them linger. Follow up with patients promptly with reminders for overdue payments.
3. Utilize Technology: Choose the right dental practice management software to streamline your billing processes. Automation can help automatically send payment reminders, generate invoices, and track outstanding balances.
4. Offer Flexible Payment Options: Accepting multiple payment methods, including more modern methods like Venmo and traditional methods like credit cards, can give patients as many chances as possible to pay.

Spotlight: Cyber Liability Partnership

Spotlight: Our ERC Partnership

JM Tax-ERC helps dental practices that were negatively impacted by the pandemic due to revenue decreases or government shutdowns. Depending on the circumstances of your situation, your business may be eligible to receive an employee retention credit of up to $26,000 per employee, with no limit on how many employees you can receive benefits for. To learn more about whether or not you are eligible and what type of credits you could be eligible for, contact them through this application link.

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How Improving Your Billing Can Improve the Patient Experience at Your Dental Practice

Dental practices that provide excellent care and a good patient experience consistently have their chairs full and an easier time reaching profitability. Even if you are doing a good job on the services that you perform, a negative patient experience can lead to serious financial consequences for your dental practice. Improving billing practices is one way to give your practice a boost.

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