Published In Chiropractic Economics

January 2014- Receive Your Revenue: Increase your collections with these four steps to improving cash flow

Chiropractors are typically more focused on taking care of their patients than collecting money. And, since most business owners are willing to give customers the benefit of the doubt, they often find themselves in the precarious position of spending additional resources trying to collect what they have already earned. Positive cash flow is the lifeblood of any business. In most cases, insufficient collections efforts are the beginning of a company’s cash flow constraints.

In the article, Sallee discusses the importance of four steps in increasing your collections:

  • Know your patients;
  • Pay attention to accounts receivable;
  • Be proactive; and
  • Know when to escalate the matter.

According to Sallee, Money earned today is more valuable than money earned in the future because it is available sooner to be invested. So by putting off efforts to collect from a customer who doesn’t pay, you are essentially giving them a free loan. Given that no entity is making you a free loan, the urgent need for collections should be all the more clear.

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