As a professional in the healthcare and wellness industry, delivering quality patient care is your organization's top priority. A well-oiled and efficient back-office operation enables a healthcare organization to focus more time and resources on caring for their patients.
While you are passionate about giving your patient's the care they need, you need to keep the lights on to serve that mission. Getting paid on time while minimizing accounting overhead is key to success. That's why streamlining collections efforts is a top priority. In this post we are going to look at some of the benefits of AR software for healthcare organizations so you can get paid faster and better manage cash flow.
Related article: Boost Efficiency in Healthcare Accounting
7 Simple Ways AR Automation Improves Healthcare Accounting:
1. Time Your Collection Cycles to Meet Your Needs
Short collections cycles can help cash flow, but without automation a short collection cycle is tricky to manage. With automation you can manage more frequent collections cycles to maintain cash on hand. The fewer days a bill sits in accounts receivable, the better your accounts payable department is performing, which means you get paid faster.
How to Improve Your Accounts Receivable Turnover Ratio
2. Predictable Monthly Costs
With subscription-based software and services, you can better manage your expenses surrounding your accounts receivable.
3. Remote Collections
Because most modern solutions are cloud-enabled and use subscription pricing, you will see minimal upfront costs. Plus it will enable your accounting team to work from anywhere so you can minimize exposure of pathogens like influenza and COVID-19.
4. Flexibility & Scalability
With AR automation software, it is easier for healthcare organizations to scale receivables their department up and down with minimal strain.
5. Integration
Reduce redundancy and spend fewer resources focused on data entry so your organization has more bandwidth to focus on care. With integration to your accounting system, AR software helps speed up period closings, delivers valuable data insights and reduces errors and discrepancies.
6. Security
Guarding patient data is not only a regulatory requirement, it's a moral obligation. Some of the key benefits of accounts receivable software include audit traceability, fraud prevention and improved security.
7. Harmonize AP & AR
Cash management is critical to keeping your organization running smoothly, and accounts receivable and accounts payable are the core to your cash flow management. Choosing an AR solution that integrates with your ERP as well as an AP solution enables improved cash flow management on both ends. With AP and AR harmonized, you get improved insights for more strategic planning.
Learn More: 5 Tips On How to Grow with Cash Flow Management
