How efficient is your collections process? By looking at one number, you can find out! In this episode, Kirk Behrendt brings back Ariel Juday, one of ACT’s amazing coaches, to break down accounts receivable ratio. She explains what AR is, how to track it, and what you can do if it’s not at a healthy number. To learn how to manage and take control of your AR, listen to Episode 925 of The Best Practices Show!
Learn More About Ariel:
More Helpful Links for a Better Practice & a Better Life:
Episode Resources:
Main Takeaways:
- Your ideal AR ratio is 1:1. For every $1 produced, you're owed no more than $1.
- Calculate your AR ratio monthly or quarterly to keep track of any increases.
- Have a clear financial policy and collect at time of service to keep AR low.
- If your AR isn't healthy, don't be upset with your team members.
- You can't fix your AR overnight. Have realistic expectations.
Snippets:
0:00 Introduction.
2:10 Accounts receivable, explained.
4:14 Example of a healthy AR ratio.
4:55 How AR impacts your practice.
5:49 What a low AR ratio indicates.
6:39 Pros and cons of negative receivables.
8:38 How to impact your AR ratio.
11:34 Last thoughts.
Ariel Juday Bio:
Ariel has a master’s in healthcare administration and several years of dental experience in all aspects of the administrative roles within the dental office. Her passion is to work with dental teams to empower team members to realize their full potential in order to better serve patients, improve office systems to ensure a well-functioning team/office, and to help everyone have fun in the process!
