It's a Date!
July 07, 2015 at 2:14 PM
Every company knows there are deadlines that affect their business. These can include filing income taxes, state sales tax, payroll, corporate documents, and many other time-sensitive obligations. Others affect your cash flow and can determine the success or failure of your business.
Set a time frame policy for aged accounts. The longer you wait to take action on a past due account, the less likely it is you will get paid. Your accounts receivable policies should include regular review of aged accounts and a time guideline for submission to a collection agency. Statistics show that the older the debt, the less likely you will get paid.
And remember…..if you place an account with a collection agency, that agency is bound by the Fair Debt Collection Practices Act. By law, when your customer has been initially contacted by a collection agency, they have 30 days to dispute or request verification of the debt. Collection efforts cannot be started until after the initial 30 days.
Get out your calendar…..save these dates!
October 1, 2015…… A two-step checkout process will go into effect for Europay, MasterCard and Visa. If you are not in compliance after this date, you could be held liable for fraudulent transactions. If you have not upgraded to accept chip cards, discuss pros and cons with your merchant services provider. While you are not required to comply, it is up to you to determine if you are willing to take the liability risks for not upgrading.
October 1, 2015……ICD-10 coding transition takes effect. If your practice is not prepared, it could delay insurance claim payments and seriously affect your cash flow.
December 29, 2015…. The government recently issued final regulations under section 501(r), which imposes specific requirements on tax -exempt hospital organizations. The tax year beginning after December 29, 2015, will require compliance with these regulations. This will include non-profit practices (clinics) that are tied to the non-profit hospital. These regulations have a significant impact regarding your policies on bill collection and financial aid practices.