Why Use Dental Office Billing Cycles?
Dental office billing cycles are powerful tools. And a tool I highly recommend dental practices to use. It’s a great way to separate categories of patients. And to bring clarity to your accounts receivable. Which in turn, supports better practice management.
How? I’m glad you ask!
How to Use Dental Office Billing Cycles
I prefer to use a billing cycle to identify an account type. And here are some examples:
- Accounts to receive no statements ( doc’s mother or wife)
- Extended payment plans (ortho perhaps)
- Pre-payment accounts (patients who make monthly payments towards dentistry)
- Accounts placed with credit bureau/collection agencies
Dental Office Billing Cycles for Dental Insurance
You may consider a cycle for specific dental insurance. Or for patients without insurance. This might be a way to track some numbers. Although most dental software systems can provide specifics without all the work and upkeep of using a billing cycle specification with this.
What Does This Do For Us?
Dental Office Billing Cycles Bring Clarity
- No statement- it’s so easy to run a report on how much “free” dentistry was provided to patients. Whatever the reason. Put this in a billing cycle and quickly look at who is in that cycle and calculate the write offs. (Of course you want a write off specific for any complimentary service)
Extended Payment Plans
- Extended payment plans – know what’s out there in extended payment plans separate from what’s over due. When I worked in a pediatric/orthodontic practice, this was essential. Otherwise, it looked like we were really bad with money management. And it was so easy to show the bank when we needed an expansion loan where the money was and when it was coming in.
- Pre-payment accounts – encourage patients who like payment options to make regular monthly payments on their accounts. Then when they need dentistry, it’s paid for. But know who is on this plan. And how much money is held in advance.
- Credit/Collection agencies – I never write off what’s placed in collections or credit bureau agencies. I like to see that number when a patient calls back. And they do! But, I place this in a separate billing cycle. Again, I want to run a report just for this total. And reports without this total as well.
Dental Office Billing Cycles & Reports
Once you get your billing cycles set up and accounts in them, run your monthly reports.
Print the full aging report. Include all billing cycles. Then, print each separate billing cycle to break it down. Surely, you’ll see just how valuable this is for better practice management.
Nothing Over Ninety Days is just one of the many e-books you can download today with your Dental Practice Annual Coaching Plan.