Accounts Receivable & Billing
Receipts. Are the receipts you use pre-numbered? Are cash receipts balanced daily? Is there a procedure to ensure that the daily deposit total equals the amount collected in a day?
Billing forms. Are all bills entered into a billing system? Are they pre-numbered?
Tracking. Is there a way to ensure that all products, services or consultations are tracked and billed?
Electronic transfer of information. Do you transfer information or make payments electronically? Do you have a mechanism to check whether the electronic transmissions were received?
Verification. Is there a method of verifying the accuracy and timeliness of payments received?
Aging. Is an accounts receivable aging report printed and reviewed in detail? This will help an office assess how well its collection efforts are doing.
Statements. Are monthly statements on account balances sent to all customers who have balances due?
Reminders. Do your statements have dunning messages? (A dunning message is a friendly reminder at the bottom that the account is overdue by a certain number of days.)
The above is just a starting point, but it can assure you that all of your business is being accounted for, or it may signal to you that your business procedures have certain financial weaknesses and may need some fine tuning. If so, you may want a more detailed audit performed, and our office would be happy to assist you.