Outsourcing; A Local Endeavor

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January 21, 2013 by Rick B

Outsourcing question marks

As part of our series on determining the value of outsourcing, our last post looked at a variety of ways of assessing your accounts receivable.  The purpose of these exercises is to determine if your current technology and processes are maximizing the efficiency in which you get paid.

For full details, read our last post.  For time’s sake, here is a review of our “calls to action” on reviewing your accounts receivable.

  • Call to Action: Review your billing system (is it antiquated, does it fit your needs, etc.) and review your processes to ensure data is being entered both accurately and consistently.
  • Call to Action: Speak with the people who work the most with your billing system.  If you are the one who works with the billing system, speak candidly with your supervisor about any inconsistencies you may have uncovered.  Billing, like any other process that is done daily, sometimes is done on auto-pilot.
  • Call to Action: Determine how many days it takes for an invoice to be sent out.  If your terms are net 30, the clock usually doesn’t start ticking until one day after an invoice is received.  If an invoice is not sent out for say, 20 days after the time of service, those are 20 lost days.  The point of this exercise is to determine the actual amount of time it takes you to get paid.  Your average A/R may look great, say it is 27 days, if the invoice did not go out for 20 days, your average A/R is really 47 days (not good).  Make sure you are taking full inventory when making these calculations.           

Once you have completed the above mentioned exercises, you should have a better understanding on the functionality of your accounts receivable and revenue cycle.  If you had difficult time completing any of the exercises, or if you did not like what you uncovered, it may be time to consider the numerous advantages of outsourcing some of your business office functions.

At United Credit Service, Inc. we refer to our arsenal of outsourcing services as Accounts Receivable Management.  We can take our business partners from “cradle to grave” meaning we can handle accounts receivables from day 1 all the way through collections (if they get that far).  Our partner companies pick and choose the programs they utilize.

The following services are popular with our current partners, and can be implemented in an economical way.  The whole point is to make life easier, and get your cash flowing faster.  This week I’ll briefly mention each service. Send us any questions you have, and next week we will dive into some detail on how these services can be a fit for your business.

  • Business Office Extension: Let our employees work as your employees—the possibilities are almost limitless.
  • Early Outs and Self-pays: Particularly relevant to our friends in the medical field.  We make calls and send out letters—on your letterhead.  Our relationship is invisible to your customers and frees up vital resources within your office.
  • Payment Monitoring: We’ll set up a payment plan, send out payment reminders, and follow up on missed payments.  This is tedious work that many times falls through the cracks.  Our team of professionals will ensure those payments are coming in like clockwork—without the ticking!
  • Liability Monitoring: Workers compensation and liability claims can take a long time to adjudicate.  We’ll monitor any cases and minimize delays in processing.
  • Pre-closing A/R Management: If you’re preparing to close or sell your business, we have extensive experience in pre-closing A/R.

Check back later in the week for real-world examples of how these programs have benefitted our partners.  In the meantime, if you have any questions, shoot.

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