ARE YOUR (A/R) ACCOUNTS RECEIVABLE “WNL”?

Experts in dental practice management recommend a variety of standards by which a practice should be managed to assure maximum profitability.  One of the standards is a guideline for aged accounts receivable (A/R).  Maintaining these parameters should assure that your A/R does not spin out of control.

• Current – 50% - 60% of total A/R
• 30 days – 15% - 20% of total A/R            
• 60 days – 10% - 15% of total A/R
• 90 days – less than 10% of total A/R
• 120 days – sent for outside collection action  (Caution here---the dentist should review all accounts to be sent to a collection agent to be certain there are no extenuating circumstances that would warrant simply writing off the balance rather than turning the account over for outside action.)