Making use of debt collection services, and knowing when to hire outside collection agencies is often important when you operate a business. When credit is extended to customers or clients it is often a gamble, because even those with excellent credit history can occasionally miss a payment or experience financial hardship. Regardless of the circumstances however, it is still important that their payments are made to you on time as agreed.
Today, business owners confront new cash flow challenges due to tightening credit markets brought on by a recession, the subprime mortgage fallout and economic crisis. With less availability and access to credit, businesses are faced with looking for other avenues to maintain positive cash flow and keep their businesses operational.
Tuesday, June 16, 2009
Wednesday, June 3, 2009
The world of chasing payments and EOB's - medical billing news!
It is extremely challenging to chase down payments if you are not receiving timely EOB's. The only options available is the nightmare of calling the insurance carriers, which MANY have outsourced to palces like India and Asia AND searching the web. The best solution? Get your clients to send you the EOB's that you need in order to properly close out claims AND to invoice your own client. Tough stuff.
Tuesday, May 19, 2009
Should you work with your "friends"? Medical billing news!
Although it may sound "NICE" to work with a friend, it is NOT always recommended.
It definately and absolutely depends upon the relationship and the business arrangement.
Definately look closely at role definitions, monetary contributions and task management. As uncomfortable as it may seem, it is imperative to consult with a business planner and an attorney.
OTHERWISE, the entire business relationship and personal friendship will QUICKLY become a nightmare!
It definately and absolutely depends upon the relationship and the business arrangement.
Definately look closely at role definitions, monetary contributions and task management. As uncomfortable as it may seem, it is imperative to consult with a business planner and an attorney.
OTHERWISE, the entire business relationship and personal friendship will QUICKLY become a nightmare!
Wednesday, May 13, 2009
Silence on the phone - medical billing news!
Like any kind of conversation, conversations over the telephone have rules. One of those rules is that when one person is talking, the other person sends signals to the "talker" that they are listening, and still there. This is necessary because the parties can't see each other. The only way to know there is a person on the other end is if the other person makes some sort of noise, usually "yes", "uh-huh", "I understand", etc. Consistent with our self-defense principles, you do not want to follow this rule. The best way to get a person to stop talking on the phone is simply to say nothing at all. If you can avoid breathing into the phone, or if you can exclude any noise getting through from your end, this is even better. Eventually, the person on the other end will stop, and say something like "Hello, hello, are you there?", and pause for a moment. This gives you the opportunity to say something at the invitation of the caller.
Saturday, May 9, 2009
Medical billing business name - medical billing news!
What's in a business name? Everything and nothing. The right business name will help distinguish you from a sea of bland competitors, provide your customers with a reason to hire you, and aid in the branding of your company. A business name won't make up for serious deficiency in your business operations or help you avoid selling. Apply these 10 commandments when choosing a name for your business.
1. Take Naming Seriously: Naming your business or products is a serious matter. The name you choose can play an integral part in the marketing of your company. Your name projects your image, brand, and position in the marketplace.
2. Avoid Word Play Dangers: Taking the word play strategy will add to the difficulty in having customers remember and find you. Being cute can backfire. Funnynames.com lists the following actual "businesses to avoid:"
Ear-Resistible Designs Plus
Dirty Ernies Paragon Hotel
Fireball Oven Co
Mess Graphics Inc
Ralph Rotten's Nut Pound
X-Ray Sweaters
3. Don't be an IBM: It's tempting to abbreviate your business name to make communications and correspondence easier. However, as a small business owner you don't have the resources and marketing muscle to educate your market on what your acronym means.
4. Be Focused: Forget tagging your business name with the moniker such as global or enterprise. Any start-up founder has big visions for their company. You might one day envision marketing to diverse markets and having a wide range of products. Successful start-ups have limited time and money; it's more likely your success in the world of commerce will come from being highly focused in one narrow area. A small company is a specialist; it's why your customer wants you.
5. Stay Out of Court: Don't use, borrow, or modify an existing famous brand name. In Elizabethtown, Kentucky, Victor Moseley used the name Victor's Secret when he opened his adult gift and lingerie shop. Victor's Secret did not remain secret when the legal department of Victoria's Secret sent a letter to Moseley claiming trademark infringement. In haste, the name was changed to Victor's Little Secret, but the change was not enough for Victoria's Secret who then filed a lawsuit.
6. Think Beyond Local: The bulk of small businesses operate in local markets. This doesn't mean your name should be geographically based. If you are marketing to customers in a local market, they'll know you operate locally. Adding your town name to your business name just ensures you will be stuck in a long directory list of other local companies with similar names. If you want a local name, add it to your marketing such as "Exclusively Serving the (town) Area."
7. Avoid ME Inc: It's a common tendency for a business to be named after the original founder. If you are planning to one day sell your company, a company owner named business is less attractive to a perspective buyer's than a brand built on a company.
8. Ask Others to Spell it: When I started one of my companies and named it Insightica, it was unique enough but it drove me crazy the number of times I was asked to spell it. The word could be spelled with site or sight. Put your business name through the spelling test and ask others to spell it. Yourdictionary.com lists experience, intelligence, jewelry, millennium, and personnel as a few of the top 100 most misspelled words.
9. Be Web Friendly: Consumers are bombarded with business names and advertising on a daily basis. Your job as a successful small business is to make customers remember you. Your website web address should be the same as your business name. Avoid the hyphenated web address names. It's hard enough to remember a web site address without the hyphens.
10. Check Availability: When you have developed a great business name, spend the time to determine if another business isn't using it. You can use a similar name for your business if another company uses it in an unrelated market or industry. Once you have your name, protect it by registering the business name with your county or State office.
Your business name should be easy to remember and memorable. Apply the 10 commandments when naming your business and in the end you'll avoid a marketing disaster.
1. Take Naming Seriously: Naming your business or products is a serious matter. The name you choose can play an integral part in the marketing of your company. Your name projects your image, brand, and position in the marketplace.
2. Avoid Word Play Dangers: Taking the word play strategy will add to the difficulty in having customers remember and find you. Being cute can backfire. Funnynames.com lists the following actual "businesses to avoid:"
Ear-Resistible Designs Plus
Dirty Ernies Paragon Hotel
Fireball Oven Co
Mess Graphics Inc
Ralph Rotten's Nut Pound
X-Ray Sweaters
3. Don't be an IBM: It's tempting to abbreviate your business name to make communications and correspondence easier. However, as a small business owner you don't have the resources and marketing muscle to educate your market on what your acronym means.
4. Be Focused: Forget tagging your business name with the moniker such as global or enterprise. Any start-up founder has big visions for their company. You might one day envision marketing to diverse markets and having a wide range of products. Successful start-ups have limited time and money; it's more likely your success in the world of commerce will come from being highly focused in one narrow area. A small company is a specialist; it's why your customer wants you.
5. Stay Out of Court: Don't use, borrow, or modify an existing famous brand name. In Elizabethtown, Kentucky, Victor Moseley used the name Victor's Secret when he opened his adult gift and lingerie shop. Victor's Secret did not remain secret when the legal department of Victoria's Secret sent a letter to Moseley claiming trademark infringement. In haste, the name was changed to Victor's Little Secret, but the change was not enough for Victoria's Secret who then filed a lawsuit.
6. Think Beyond Local: The bulk of small businesses operate in local markets. This doesn't mean your name should be geographically based. If you are marketing to customers in a local market, they'll know you operate locally. Adding your town name to your business name just ensures you will be stuck in a long directory list of other local companies with similar names. If you want a local name, add it to your marketing such as "Exclusively Serving the (town) Area."
7. Avoid ME Inc: It's a common tendency for a business to be named after the original founder. If you are planning to one day sell your company, a company owner named business is less attractive to a perspective buyer's than a brand built on a company.
8. Ask Others to Spell it: When I started one of my companies and named it Insightica, it was unique enough but it drove me crazy the number of times I was asked to spell it. The word could be spelled with site or sight. Put your business name through the spelling test and ask others to spell it. Yourdictionary.com lists experience, intelligence, jewelry, millennium, and personnel as a few of the top 100 most misspelled words.
9. Be Web Friendly: Consumers are bombarded with business names and advertising on a daily basis. Your job as a successful small business is to make customers remember you. Your website web address should be the same as your business name. Avoid the hyphenated web address names. It's hard enough to remember a web site address without the hyphens.
10. Check Availability: When you have developed a great business name, spend the time to determine if another business isn't using it. You can use a similar name for your business if another company uses it in an unrelated market or industry. Once you have your name, protect it by registering the business name with your county or State office.
Your business name should be easy to remember and memorable. Apply the 10 commandments when naming your business and in the end you'll avoid a marketing disaster.
Monday, May 4, 2009
Money and Complaint resolution - medical billing news!
It is not unusual for some companies to have 30 - 40% of their debtor/sales ledger subject to queries and/or complaints.
When you look at any list of debtors, you can be sure that a certain element is not late payment related. Credit control has the function of getting all accounts paid. Therefore, they have the responsibility to resolve any issue that stops full payment of an account. They may not necessarily resolve the issue themselves, but they should be the catalysts for identification, control, resolution and finally, payment.
The following month another invoice is sent out (yes, you guessed) there was no order number on the invoice! It takes one minute to change the invoice details on the customer's computerized or manual account to ensure all invoices to that customer will include an order number. Good administration discipline is essential for efficient invoicing.
As you can see, it does not take much to get to 65 days from invoice with a good paying customer: a 'professional defaulter' with cash flow problems can easily take the days outstanding well beyond 90 days.
You should not expect the supplier to take affirmative action on an incoming invoice that they cannot identify, or is simply incorrect.
The 'old chestnut' of "we have not been invoiced": in answer to why the customer has not paid, should only ever happen once in a trading relationship.
When a customer blames the lack of an invoice, from you, is stopping them from paying, you must take final and decisive action to ensure the invoice can never again been used (fairly or unfairly) as a reason for withholding payment.
You need to get clear instruction and reference information to enter onto the invoice, from the customer, and ensure the customer information is updated on your record for future invoices.
Further problems can be caused by customers paying part of an invoice: due to disputed items, non-delivery, discounts that are not due, goods that are not wanted, and of course: those who have cash flow problems
When you look at any list of debtors, you can be sure that a certain element is not late payment related. Credit control has the function of getting all accounts paid. Therefore, they have the responsibility to resolve any issue that stops full payment of an account. They may not necessarily resolve the issue themselves, but they should be the catalysts for identification, control, resolution and finally, payment.
The following month another invoice is sent out (yes, you guessed) there was no order number on the invoice! It takes one minute to change the invoice details on the customer's computerized or manual account to ensure all invoices to that customer will include an order number. Good administration discipline is essential for efficient invoicing.
As you can see, it does not take much to get to 65 days from invoice with a good paying customer: a 'professional defaulter' with cash flow problems can easily take the days outstanding well beyond 90 days.
You should not expect the supplier to take affirmative action on an incoming invoice that they cannot identify, or is simply incorrect.
The 'old chestnut' of "we have not been invoiced": in answer to why the customer has not paid, should only ever happen once in a trading relationship.
When a customer blames the lack of an invoice, from you, is stopping them from paying, you must take final and decisive action to ensure the invoice can never again been used (fairly or unfairly) as a reason for withholding payment.
You need to get clear instruction and reference information to enter onto the invoice, from the customer, and ensure the customer information is updated on your record for future invoices.
Further problems can be caused by customers paying part of an invoice: due to disputed items, non-delivery, discounts that are not due, goods that are not wanted, and of course: those who have cash flow problems
Thursday, April 30, 2009
Don't get caught UNlicensed! Medical Billing News!
Don't Forget This Crucial Business Requirement
Many state, county, and local governments require companies to obtain business licenses and permits before they can start conducting business. Business owners must comply with government requirements regarding business licenses, permits, and tax registrations. Requirements vary by location and business activities. Failure to register could result in fines, notices, and the inability to conduct business.
Many state, county, and local governments require companies to obtain business licenses and permits before they can start conducting business. Business owners must comply with government requirements regarding business licenses, permits, and tax registrations. Requirements vary by location and business activities. Failure to register could result in fines, notices, and the inability to conduct business.
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