Empowering Women in Chiropractic - Your Accounts Receivable Report Monthly To Do

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Hey everybody. I'd like to thank ChiroSecure for hosting this event today and giving me the opportunity to share some really important information with you. I am Dr. Randi Ross, CEO of Premier Practice Consultants, and today we're gonna talk about your AR, your accounts receivable. And there's a number of really important things that I've noticed lately that really made me and compelled me to wanna share this with you.

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So a lot of people, when you ask about their ar, they may or may not really be informed and educated about the AR that specifically pertains to their business. And this is. Obviously if you're all cash practice, this exercise won't work for you. But for most of us, there's some level of accounts receivable and it varies, is it mostly commercial health insurance?

Is, are you a PI practice, which obviously you're ar. Is gonna be much different than the conventional office. So the exercise is gonna be the same no matter how your office is structured and what your payer profile is. AR is really important and you should be tracking your AR monthly and I find people that don't do that when I meet with someone and ask them about their ar, the ones that really don't track it.

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Are incredibly surprised when they start looking at it and they start looking at, does that even, or I'll point out to them something about that doesn't make sense. And because they haven't been looking at it, they're often a little bit lost as to, yeah, you're right. That kind of doesn't make sense, but I'm not really sure why it's like that.

And too many people turn. They're billing over to, whether it's in-house or a billing company, and they maybe don't track exactly properly in detail as they should. They're just looking at, this is what was billed, this is what we took in. Maybe this is what we have to write off, but you really need to look at this in a broader picture, even historically.

Over the course of a full, 12 months or last calendar year, and your AR should be very similar month to month. In other words, when I look at these, I could just looking at a, at what we call an aging 12 month report, I could tell you this is how much your AR is historically.

This is what you're gonna collect because think about it. Most practices, unless you're in a huge growth or a huge decline, you're going to build the same thing every month, which other than PI technically means you're gonna probably collect something similar. So you get that historic collection value that's really important to understand.

'cause sometimes you don't even realize it, the person doing your billing. Is leaving some money on the table that shouldn't be left on the table. And if you're not, if you're only tracking what we build and what we collected and not really analyzing it, you're, there's a good chance you're missing that opportunity.

So AR is really important. You should be tracking this monthly, quarterly, semi-annually and yearly, and looking for inconsistencies. They're gonna be different for every person, what those inconsistencies are. Again, something like PI can be a little bit more difficult because you could be waiting for cases to settle and things like that.

But again, if that's historically what your practice is, that should still be very similar across the board. Maybe what you're gonna write off, you don't necessarily know because you have to make agreements with attorneys as they settle. Again, when you look at a business, historically, things are very similar.

So take a look at that aging report. You could do it really easy. They, most systems will print out a one page zero to 30, 30 to 60, 60 to 90 90 to one 20. And and anything older than that usually means that it's pi 'cause it's, hasn't been collected. The other reason why that this has become really important, this AR topic.

So when we do valuation reports. We typically don't add in someone's ar. We always said it's a, secondary conversation. Or, like when you go to buy a car, there's certain things you can add in, what do they call a aftermarket, similar kind of concept. But what is happening more and more?

Is buyers and maybe more so investors at this point, not the necessarily the owner operator buyer, they're starting to assume that the AR is included in their purchase. And if you actually go ahead and Google and do a little bit of research and ask, is accounts receivables considered part of a business?

Most of your research will disclose that accounts receivables is considered an asset of the business. So someone's buying your assets, they're thinking that's included. So understanding that from day one that you start this exercise is so important because you are either leaving money on the table for most people, or there's gonna come a time when you are gonna look to offer your practice, and you need to really have a clear understanding of that.

Now there's a little more details that go into. AR being included in a business when it's sold that I'm not gonna go into here, but you, again, this is if you have an insurance practice, whatever kind of insurance it is, understanding your accounts receivables is just as important as any other element of understanding your business.

Maybe sometimes more 'cause that's money owed to you. If you're not tracking that properly, if you are not, I'll say micromanaging to a certain degree. Whoever the biller is, whether it's in office or billing service you need to be on top of it. That's your income for services you've already done work for.

So take a look at your ar, run an aging report, figure out historically. What you collect and what you should be collecting. Fill in any gaps or questions that don't make sense. Question people. Sometimes when you just look at something, I know for me, but obviously I do this all day long, I can just look at a certain reports.

I'm not even taking out a calculator and I'm like some something's not right there. And I'm sure you knowing your business when you start to look at your ar. Something's not right. It's probably gonna jump off the page and bite you in the face. So take a look at your ar, track it on a regular basis.

Make sure you are micromanaging whoever handles your billing because there's probably, again, being money left on the table or sometimes the timeframe which you have to collect actually expires. So that's even worse, that somebody wasn't doing their job, you weren't tracking them, and you didn't even realize they didn't get things in a timely manner or follow up to get additional information out in a timely manner.

And as a result of that, those bills are now non-collectible ar. Understanding your ar, tracking it, analyzing it, being on top of it on a monthly basis will help you avoid that happening. I'm Dr. Randi Ross, CEO of Premier Practice Consultants. Reach out for me, happy to have any conversations with you that pertain to your particular AR or help you do a little analysis if you need a little help with that.

I wanna thank ChiroSecure for hosting this event and allowing me the opportunity to bring you some information today.

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