How to Reduce Accounts Receivable by 50%

This guide is to help dental practices take control of their finances by providing actionable strategies to reduce Accounts Receivable (AR) by up to 50%. It outlines efficient AR management practices, offers steps to minimize outstanding balances, and includes tips to prevent theft—empowering practices to improve cash flow and maintain financial health.

A healthy AR ensures smooth cash flow, reducing the risk of financial strain and keeping your operations running efficiently. High AR can turn your practice into an interest-free bank for patients, increasing the chances of delayed or uncollected payments for completed work. Additionally, it heightens the risk of theft and mismanagement. By keeping AR low, you protect your revenue and safeguard your practice's financial stability.

Our e-book equips you with essential tools like the End of Day (EOD) form, AR Tracker, and Bank Deposit form to streamline AR management and reconciliation. Backed by ADC CPA’s 8+ years of experience, we provide step-by-step guidance to ensure successful implementation while helping you avoid common mistakes. Take control of your practice’s finances with confidence!

Key steps include reviewing aged AR reports to identify overdue accounts, prioritizing those over 120 days for immediate action, and verifying patient ledgers to ensure accuracy and resolve discrepancies. Additionally, implementing a system to track AR decline on a monthly basis helps monitor progress, address ongoing issues, and maintain a healthy financial position for your practice.

The guide emphasizes preventative measures like daily reconciliations to ensure transaction accuracy, maintaining an AR tracker for real-time monitoring, and implementing financial controls to prevent errors or theft. With step-by-step instructions and templates, it helps you reduce AR and establish a sustainable system to prevent re-accumulation of AR.