News & Tech Tips

Accounting Best Practices for Startups

Starting a business is an exciting adventure, but it’s also a lot of work. One of the most important things you can do to set your startup up for success is to establish sound financial management practices. This will help you track your income and expenses, make informed financial decisions, and grow your business sustainably.

Here are some accounting best practices for startups:
  1. Use accounting software. This will make it easy to track your finances from anywhere, and it will also help you to stay organized. Many different accounting software options are available, including cloud-based ones, so you can choose one that fits your needs and budget. Need a recommendation? We recommend looking into our favorite one, QuickBooks.
  2. Set up a separate bank account for your business. This will help you to keep your personal and business finances separate, which is important for tax purposes. It will also make it easier to track your business expenses.
  3. Track your income and expenses. This is essential for understanding your financial health and making informed financial decisions. You should track your income and expenses on a regular basis, and you should keep all of your receipts.
  4. Create a budget. A budget will help you to track your spending and make sure that you are not overspending. There are many different budgeting methods available, so you can choose one that works for you.
  5. Get regular financial advice. Connect with your Whalen advisor; they can help you stay compliant and provide you with essential business planning.
  6. Pay attention to cash flow. This is the lifeblood of your business, so it’s important to make sure that you have enough cash on hand to cover your expenses.
  7. Don’t be afraid to ask for help. There are many resources available to help startups with financial management.

Following these accounting best practices will help you to establish sound financial management practices for your startup. This will give you the foundation you need to grow your business sustainably and achieve your financial goals. Don’t be afraid to reach out for help if you need it. Contact Us!

Turning receivables into cash

It’s common for high-growth and seasonal businesses to have occasional shortfalls in their checking accounts. The reason relates to the cash conversion cycle — that is, it takes time to collect on customer invoices. In the meantime, of course, employees and suppliers want to get paid. The “cash gap” is currently getting wider for many companies. A recent study by CFO / The Hackett Group shows that the cash conversion cycle increased from 35.2 days in 2021 to 36.4 days in 2022. To add insult to injury, interest rates, and many operational costs are rising.

Fortunately, when cash is tight, small business owners can sometimes turn to receivables for relief. Here are some strategies for converting outstanding invoices into fast cash to pay bills.

Applying for a line of credit

A line of credit can be collateralized by unpaid invoices, just like you pledge equipment and property for conventional term loans. Banks typically charge fees and interest for securitized receivables. Each financial institution sets its own rates and conditions, but these arrangements generally provide immediate loans for up to 90% of the value of an outstanding debt and are typically repaid as customers pay their bills.

For example, a custom manufacturer had difficulty making payroll after two of its large clients delayed payment on outstanding invoices. A local bank gave the company a line of credit for $80,000. To secure the loan, the company was required to put up $100,000 in unpaid invoices as collateral and then repay the loan, plus fees and interest, once customers remitted payments.

Factoring receivables

Factoring is another option for companies that want to monetize uncollected receivables. Here, receivables are sold to a third-party factoring company for immediate cash.

Beware: Costs associated with receivables factoring can be much higher than those for collateral-based loans. And factoring companies are likely to scrutinize the creditworthiness of your customers. But selling receivables for upfront cash may be advantageous, especially for smaller businesses, because it reduces the burden on accounting staff and saves time.

For instance, a wholesaler faced cash flow issues because customers were paying bills between 60 and 90 days after issuance. As a result, the owner used a high-interest-rate credit card to make payroll and spent at least three days a month chasing down late bills. So, the owner sold off roughly $200,000 of the company’s annual receivables to an online factoring firm. This saved the company hundreds of personnel hours annually and allowed it to stop building up high-rate credit card interest expenses, while considerably easing cash flow concerns.

We can help

Before monetizing receivables, banks and factoring companies will ask for a receivables aging schedule — and most won’t touch any receivable that’s over 90 days outstanding. Before you write off your stale receivables, call customers and ask what’s happening. Sometimes you might be able to negotiate a lower amount — this might be better than nothing if your customer is facing bankruptcy. If all else fails, you might consider a commission-based collection agency or collection attorney.

Contact us to discuss your delinquent accounts receivable and other cash flow concerns. We can help you find creative solutions to convert receivables into fast cash.

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The importance of collecting and analyzing patient data

In today’s healthcare landscape, data is king. Data is crucial to keeping track of the business aspects of practice and plays a role in improved patient care. By collecting and analyzing data, healthcare providers can gain valuable insights into their practices, improve patient care, and make better decisions about resource allocation.

Here are three reasons why collecting and analyzing patient data is essential:

  1. Improved patient care: By collecting and analyzing patient data, healthcare providers can identify trends and patterns in offering care at their offices. Auditing treatment plans improve patient care plans and ensure patients receive the proper treatment.Audits can assist providers in identifying diagnosis and treatment coding errors. Audits may reveal codes that insurance payers routinely refuse. It is common for providers to diagnose and plan treatments essential to the patient’s well-being; however, patients may inquire about insurance coverage and find they will have to pay for the proposed treatment themselves. This discovery may cause patients to avoid necessary treatment. Data analysis will uncover these discrepancies and help practitioners develop communication skills targeted at counseling patients.
  2. Better decision-making: By analyzing data, healthcare providers can make better decisions about resource allocation and identify areas where resources are needed most. It is not uncommon for technology to advance in medicine. Changes in technology can drive changes in personnel and materials. Watching for opportunities to utilize technology to assist in patient care will assist providers in prioritizing cash allocations in the office. In dentistry, for example, scanners have changed how providers take impressions, which changes the need for impression materials, shipping costs, personnel use, and turn-around time for lab work. Many offices realized cost savings when scanners were purchased. Additionally, providers can run audits on specific codes to determine that fees align with service costs and make appropriate changes.
  3. Increased efficiency: By collecting and analyzing patient data, healthcare providers can streamline their operations and increase efficiency. This information can identify faulty processes and help eliminate waste. Reduced waste helps improve the entire healthcare system.

The importance of collecting and analyzing patient data is evident. By using data to improve patient care, make better decisions, and reduce costs, healthcare providers can improve the overall health of their patients and introduce oversight in the healthcare system by managing their offices more efficiently.

Collecting and analyzing patient data is a powerful tool that can improve healthcare. By using data wisely, healthcare providers can make a real difference in the lives of their patients.

Best practices for managing patient appointments and scheduling

Patient appointment scheduling is an essential part of any healthcare practice. It can be a daunting task, but it is crucial to get it right.

Here are five best practices for managing patient appointments and scheduling:

  1. Use patient scheduling software: Patient scheduling software can help you automate the scheduling process. Software products that let people choose from available time slots can help relieve the stress of finding appointment times. These products give the front staff time to think about appointment requests in terms of the overall schedule and ask providers about the appointment timing if there are scheduling conflicts. Self-serve scheduling helps patients feel like they have some autonomy about the appointment instead of feeling pushed into a time slot that is not best for their schedules.
  2. Set clear appointment policies: Ensure your patients know what to expect when they schedule an appointment. Be sure any communication includes the types of appointments you offer, the length, and the cancellation policy. Providers should enforce strict policies that prevent front staff from providing medical advice or quoting fees. Take time to work out wording that redirects the patient to what they can expect, the excellent service they will receive, and the benefits of being a patient at the office.
  3. Be flexible: Sometimes, patients need to reschedule their appointments. Be flexible and work with your patients to find a time that works for them. With this in mind, remember that broken appointments are costly, and the front staff should strategically schedule and look for ways to fill gaps created by no-shows. One creative solution for redeeming broken appointments is to offer patients already in for treatment some additional time to finish other treatments without rescheduling. If a patient is already numb in one quadrant, they may appreciate the doctor being willing to restore a tooth next door if extra time is available. Also, keep a list of people who are able and willing to come for treatment on short notice. Many retirees are flexible, and some patients who live close to the office or work from home may be able to fill in gaps quickly.
  4. Communicate with patients: Keep your patients informed about their appointments. Send them reminders and confirm their appointments.
  5. Track your appointment data: Track your appointment data to see how well your scheduling works. Tracking data will help you to identify areas where you can improve.

Following these best practices can improve your patient appointment scheduling and provide a better patient experience.

 

 

 

The benefits of having a well-trained front office team

The front office team is the first point of contact for your customers. They are responsible for making a good first impression, providing excellent customer service, and resolving issues. A well-trained front office team can make a big difference in the success of your business.

Here are some of the benefits of having a well-trained front-office team:

  • Increased customer satisfaction: A well-trained front office team can provide excellent customer service. They can answer questions, resolve issues, and ensure customers are satisfied with their experience. Most importantly, the front office team is a part of the patient triage because they help patients discern the type of appointment they need and what services will likely be part of the treatment. It is essential to set office guidelines regarding the questions to ask patients when they call in so that the clinical team can have the best information available to them to improve treatment.
  • Increased case acceptance: A well-trained front office team can help to improve treatment plan acceptance. Team members should be trained to help patients understand the flow of treatment, it’s timing, and costs and should be able to answer questions about expected outcomes. The front office staff is often instrumental in helping patients become more comfortable with their proposed treatment plans by perceiving hesitancies and involving the clinical team to answer lingering doubts.
  • Improved efficiency: A well-trained front office team can help to improve efficiency. They will be able to handle customer inquiries and requests quickly and efficiently, freeing up your time to focus on other tasks.
  • Reduced costs: A well-trained front office team can help to reduce costs. They can prevent insurance coding mistakes, identify patient data errors,  and address payment issues. These services are critical to the health of any practice.

If you want to improve the success of your business, it is vital to invest in training your front office team. Many resources are available to help you prepare your team, such as online courses, books, and seminars. By investing in training, you can ensure your front office team is ready to provide excellent customer service and help you achieve your business goals.

Here are some tips for training your front office team:

  • Start with the basics: Make sure that your team members understand the basics of customer service, such as how to greet customers, how to answer questions, and how to resolve issues. The team leader, often the office manager, should be able to implement the provider’s vision for the practice. These leaders should have some input into decision-making regarding office policy. They should dedicate themselves to overseeing that the team performs collaboratively to meet the stated goals of the office.
  • Provide ongoing training: Don’t just train your team once and then neglect further training. Provide ongoing training so your team members can stay up-to-date on the latest customer service techniques. Ensure that the training program extends to all new hires and that the seasoned personnel are up-to-date on all office policies or procedural changes.
  • Set clear expectations: Ensure your team members know your expectations. Set clear goals and expectations for customer service, and provide feedback so your team members can improve their performance. Remember, to be unclear is to be unkind. Many people are anxious to perform well in their roles. Stated expectations are the standards by which performance is judged, so clear communication of the expectations can improve employee job satisfaction.
  • Reward good performance: When your team members do a good job, reward them. Approval will help to motivate them to continue providing excellent customer service in the future. A reward does not always have to take a monetary form. All people enjoy hearing they are valued team members. Recognizing a job well done will help with employee compliance and satisfaction.

By following these tips, you can train your front office team to be their best. A well-trained front office team can make a big difference in your business’s success and your enjoyment of your practice. Contact Us to get more tips.