Accounts Receivable Analysis & Calling Services
Accounts Receivable Analysis & Calling Services
Accounts receivable conversion (ARC) is a process where paper checks are electronically scanned and converted into an electronic payment. ARC reduces the time and expense that is associated with traditional check payments for accounts receivables. Businesses that use ARC receive their payments much quicker than they would through traditional checks. This allows them to furnish their liabilities faster. ARC is processed through the automated clearing house (ACH).
What are the problems most often found during system conversion?
Problems during system conversion often don’t have anything to do with the conversion itself, but rather the inability for staff to focus on existing work during conversion. You may experience:
➢ AR days increasing
➢ Revenue decreasing
➢ Low patient or customer satisfaction
➢ Frustrated staff
➢ Long hours
➢ Heavy or out of control call volume
How can we help support your team?
- Liquidating AR from your legacy system
- Providing insurance follow-up and billing support for small balance accounts, Medicaid, commercial and Medicare
- Providing insurance follow-up and billing support for small balance accounts, Medicaid, commercial and Medicare
- Contacting 100% of your patient receivables
- Providing an immediate lift in cash flow
- Offering on-site FTE support
How Does Accounts Receivable Conversion Work?
Evolution and development in the financial industry gave rise to the creation of accounts receivable conversion. It is a process through which checks are turned to electronic payments. The financial industry is largely computerized, this is why ARC has enjoy popularity in the industry. Before it was created, the lockbox banking was the common method of payment, this is time consuming. ARC converts checks to electronic payment through the Automated Clearing House or ACH and ACH is managed by NACHA (National Automated Clearing House Association). ACH complies with NACHA operating rules. Quite a number of companies process their transactions using ARC. 21.5 billion Transactions which is worth more than $46.8 trillion were processed by ACH in 2017.
Advantages of accounts receivable conversion:
ARC provides many advantages in addition to improving the timeliness and costs of transactions. Businesses enjoy using ARC because it does not require high levels of authorization from the customer to begin processing. Usually, a notification is sent to the customer from the business that informs them that once the item is received their account will be debited.
The most important aspect of ARC is the time reduced in receiving funds. Once an item is received by the customer, typically the business will receive their funds within a few days by using ARC. The customer has the choice of opting out, but statistically, this number is low.
Receiving funds on accounts receivable for a business is crucial because it reduces outstanding collectibles, meaning more cash on hand, meaning that they can furnish their debt obligations faster as well as reduce accounts payable sooner. For example, the sooner that money comes in from accounts receivables, the sooner a business can pay its suppliers.