Problem : Meeting or even exceeding your monthly cash goals is great but if you don’t understand where you cash is coming from (and more importantly – where it’s not coming from) is just as important! An important part of a successful business is recognizing revenue and receiving payments consistently every month. How are you able to determine when a payer releases 80% of previously billed charges vs. 20% of billed charges? And how can you investigate what may have caused the drop if you don’t know it happened?
Cause: Detailed cash aging reports are not available in most standard software packages and manually calculating this information is too time consuming.
Impact: Understanding who is paying you timely is important in accurate cash forecasting. Understanding who is not paying you is important in identifying where your account aging problems are going to occur.
Solution: Rock-Pond Payment Aging Report
Benefit: An understanding of which payers are paying you and how long it is taking them to release payment one of the biggest. An understanding of which payers are paying minimal payments on outstanding AR is another big benefit. Once you look at this type of report, you will be surprised at how long some of your payers are taking to pay the majority of your outstanding claims with them. This type of information is also beneficial for your contracting staff to take to a payer in order to negotiate better payment turn around times.