Process Involved In Account Receivables Management

Account Receivables Management is said to be a process of receiving an invoices document record and maintaining a record of receiving invoices from the patients.

The Account Receivables Management involves various process in receiving and maintaining the invoices in healthcare

The Accounts Receivable Management process involves the following steps:

1. Credit Decisions:

This is done to check whether a customer is worth giving credit to supply products or services to him under an account.

2. Bill Distribution & Billing:

An invoice is generated by the supplier based on the goods or services that have been supplied to the customer. On receipt of the invoice at the client's side, payment is sent.

3. Receipting, Allocations and Reconciliations:

This is usually taken care of by an Accounts Receivables Officer who identifies the payment that has been deposited into the bank account of the supplier by the customer. This is then fed into the system and allocated to the relevant invoice. Then re-checking is done to make sure that they have received the correct payment for the said invoice.

4. Collections:

The Collections Officer checks whether any invoice is left unpaid or short paid.

The invoices are then sorted out and reminders sent to the respective customers for payment follow-up.

5. Disputes Management:

This process is generally taken care of by both the customer and the Collections Officer in case of any dispute in the bill by the former. However, in certain cases, there are dedicated teams which handle the disputes.

6. Bad Debts:

When a payment is not made even after the stipulated time limit mentioned in the invoice, then it is considered as a Bad debt.

Among many other transactions, Accounts receivable is only one that is successful in a business.