Accounts Receivable or Trade Receivable refers to payments that are due to the company by its customers.
The process of Accounts receivable management was established to help small industries to speed up their payment receivables faster without aggravating their customers. The Accounts receivable management system is an art of keeping track of the company's credit to its customers and the time taken to receive the payment from them.
In short, Accounts Receivable is a legally enforceable claim for payment to a company by its customers for services rendered or products supplied vide the purchase order of the customer. A good accounts receivables management makes or breaks a business.
In healthcare organizations, physicians provide quality care for their patients and are likely to get paid for the service rendered by them. Accounts receivable management is imperative for both the large scale providers like hospitals or healthcare organizations and small providers like physician groups and offices to diligently follow up on overdue payments and manage the cash inflow.
A company which neglects to act as efficiently and successfully as possible will finally end up alienating itself from its customers as they will start looking for alternative businesses which provide them with the products or services at a more competitive and cheaper rate.
Accounts Receivable Management is the process of receiving documents either as checks or sales invoices and maintaining a record of them. The record entries are then validated and quality free checks are conducted to ensure that every document is error-free.
Accounts Receivable management also involves eliminating all possible risks to non-payment and bad debt and ensure a smooth cash flow.