Perhaps the most frustrating challenge for businesses to overcome is getting their clients to pay their bills. The endless phone calls, messages, and emails often lead to nowhere while cash flow gets squeezed tighter and tighter.
Durable medical equipment suppliers face that problem on a regular basis. And with the added layers of government regulations, insurance hang-ups, and other healthcare-related red tape, managing your own accounts receivable can be a never ending pain point.
What if DME companies could outsource their accounts receivable work? Is it worth it? Does it actually help?
What Is DME Accounts Receivable Outsourcing?
Outsourcing business functions is a common practice these days among most industries and across all disciplines. Whether a company needs help with marketing, legal matters,, or accounting, contracting with a third party to do the work for you is frequently becoming a viable option.
Large companies dedicate entire departments to working with customers to pay their bills. But hiring staff, paying for overhead, and investing in the software and other resources comes with a high price. As a result, many not-so-large companies dig in and try to manage their own accounts receivable … with varying degrees of success.
What does accounts receivable outsourcing entail?
In a nutshell, a company entrusts its bill collecting services to a company or individual outside of their business to manage the billing functions on their behalf. They keep records, make phone calls, have unpleasant conversations, and do all other tasks related to accounts receivable.
Benefits of DME Accounts Receivable Outsourcing
While many businesses believe they have more control over their accounting by keeping everything internal, there are some significant advantages for DMEs to outsourcing accounts receivable:
Savings in cost. Hiring a third party to manage your accounts receivable typically costs a fraction of hiring, paying, training, and providing offices and benefits for their own full-time employees. Since the work is contract based, you pay only for the work you need to be done.
Savings in time. What would happen if you were able to free up your team to focus on growing your business instead of spending all their time chasing down unpaid accounts? The answer always varies but for DMEs it’s always a good thing.
More fluid cash flow. When your clients and vendors are paying their invoices in a timely manner, your company remains healthier and more stable.
Seamless integration. Today’s cloud-based software programs make it easy for businesses to be connected anywhere around the world. This applies to just about any business function, including production, sales, communication, and, yes, accounts receivable.
Improved accuracy. Third-party services dedicated to accounts receivable have established and perfected their accounting practices, using tools and resources that reduce errors.
Increased trust and confidence. The more you rely on another firm to handle the difficult task of accounts receivable, the more peace of mind you’ll experience — especially when you start to see more of your outstanding invoices being paid.
Medbill Specializes in DME Accounts Receivable Outsourcing
The best part about all of this is that you can outsource these functions to a third-party provider. You still receive all the benefits of best-in-practice accounts receivable, but it’s even better because the third party should be faster, more efficient, and have a payment success rate.
Find out what Medbill can do to improve and streamline your accounts receivable practices. Talk to one of our specialists for details.