3 Benefits of a Dental CPA Firm To Improve Billings and Collections

A dental practice is a service that provides dental care to people, but it is also a business that needs to make money to stay open. To make sure it has enough money, it must manage its finances properly and make sure there is enough cash coming in to cover its expenses.

Dental practices must stay vigilant to ensure they receive payments promptly. When the accounts receivable (A/R) rises, it is often a sign of an inefficient process of collecting payments. This can have a significant adverse effect on profitability. To maintain profitability, taking action and addressing any collection problems quickly is essential.

What is Accounts Receivable?

A/R is the amount of money that a company is owed by its customers for goods and services sold on credit. It is an asset on the company’s balance sheet and represents the money it expects to receive from its customers. Accounts receivable are typically recorded when the goods or services are delivered and the customer is invoiced for payment.

While A/R is usually considered an asset, it can cost you if you cannot convert them into cash within 60 days. An experienced dental CPA firm can help you improve your billings and collections process to ensure that your business remains afloat and can continue serving your clients. 

Here are three benefits of hiring a dental CPA firm for your dental practice. 

1. Advanced Verification of Patient Insurance 

Dental CPA Firms are experienced in dealing with insurance companies and can take proactive steps to ensure a smooth billing and collection process. One of the ways to expedite payment collection is to verify patient insurance before treatment.

By requesting information on your patients’ insurance ahead of time, you can ensure that you have the correct information to send claims to the right insurance companies accurately and have the proper knowledge when treating patients. This will help you get better collection percentages and avoid problems due to a lack of knowledge. The quicker you submit insurance paperwork, the sooner your dental practice will receive payment.

2. Better-designed payment plans 

A Dental CPA firm can help analyze patient payment history and design payment plans that work for the patient and the practice. This can help you understand why certain patients are not paying on time or in full. With this information, you can develop strategies to encourage timely payments, including payment plans, discounts, or other incentives.

In addition, a dental CPA firm can help you design payment plans that work for the patient and the practice. This can include setting up installment plans, providing discounts for early payments, or offering other payment options. Their strategies can help you improve your collections and ensure that your practice is financially sound.

3. Optimized Collections Procedure

Many dental practices struggle with ensuring their clients pay their bills promptly, leading to decreased cash flow. To prevent this, it’s crucial to have a well-defined billing and collection strategy that allows you to follow up on unpaid bills without damaging the client relationship. While it’s important not to be overly aggressive, sending statements at 60 days and hoping for the best is not a reliable solution.

A dental CPA firm can optimize collections for dental practices by helping to create a comprehensive collections policy and procedure. This includes setting up a payment schedule, sending out timely statements and invoices, and providing convenient payment options for patients. 

Conclusion

Overall, a dental CPA firm is a valuable asset to any dental practice. They can provide valuable insights into your financial health and help you develop strategies to improve it. They can also help you sort out your billings and collection processes, helping you stay on top of finances while prioritizing your dental practice. With their help, you can keep your practice financially sound and profitable for years.

Ash Dental CPA’s dental bookkeeping services specialize in helping dental practices maximize their profit. Book an appointment with us today to get started.