C-suite executives are increasingly required to do more with less. Delinquency and default rates are on the increase in the financial services space. The healthcare industry is looking for ways to reduce bad debt and increase patient revenue. And those in the commercial space are faced with trying to decrease days sales outstanding (DSO) and costs. Regulatory scrutiny, a volatile political climate, and even pressure from social media all add to these challenges and are affecting change at the highest levels of enterprise organizations.
This article looks at the importance of tackling A/R as part of a strategic and critical initiative for any organization in 2018. How can outsourcing A/R and collections help executives meet their biggest challenges this year?
CIO reports that the latest Gartner survey shows growth at the top of the list of c-suite priorities in 2018. Of course, revenue enhancement is the vehicle behind all corporate growth initiatives. But increasing revenue at a time of increasing competition can be a challenge.
Digital disruption has spawned an entirely new set of start-up companies that are changing even some of the most traditional industries, including accounting, banking, finance, and insurance. This increasing competition is causing these industries to look for new ways to improve their bottom line.
The task of collecting past due A/R is a part of accounts receivables management that many companies still struggle with. Some smaller firms even put this task off as one they’re least likely to take on comfortably, because of the regulatory complexity and labor-intensive tasks related to collections. Yet the longer these tasks are delayed, the higher the probability that these revenues will be collected at all. This is a truism in any industry and for any type of client.
Increasingly, organizations trust the experts and are outsourcing A/R collections to improve their bottom line. Large collections firms have both the technology and human resources to collect on past due balances that many organizations simply don’t have the time, resources, or technology, to pursue to the fullest extent possible.
In 2018, the c-suite will be tasked with the growth of their organization. But if that organization is still saddled with unwieldy A/R practices and a high volume of past due accounts, they will fail in their goals. In this climate, outsourcing accounts receivables management makes good business sense in any industry.
Did you know that employees account for 43 percent of data loss, whether intentional or accidental? The remaining data breaches occur because of criminal infiltration. Regardless of the threat, our research shows that data loss and security breaches cost companies an average of $4 million in 2016, during which more than four billion pieces of confidential data were exposed.
Unfortunately, failing to create an effective cyber security system for your data collection efforts could put your customers and your company at risk.
Data is easier to steal than you think.
Debt collection records are particularly sensitive because they contain significant financial information. The sensitivity elevates if you’re in the healthcare industry because your data might include personal health information (PHI).
Since you must report data breaches, your company’s reputation can take a serious hit if your customers’ data becomes compromised. Additionally, you could face serious consequences with regard to your cash flow, accounts receivable management, and stakeholders.
A data breach involving debt collection records could result in a serious fine from a regulatory body. Back in 2012, for instance, an auto dealership and a debt collector had to reach a settlement with the Federal Trade Commission (FTC) over data breaches that took place because of peer-to-peer file sharing.
Unfortunately, data breaches are on the rise. Our research reveals that 2016 saw nearly 40 percent more data breaches than 2015, and 94 of those breaches exposed at least a million confidential records each. Consumers value their privacy. In 2016, more than 15 million American consumers suffered from some sort of identity theft.
Getting best-in-class security for your data can help prevent breaches and other cyber security issues.
Many businesses don’t have the infrastructure necessary to meet HIPAA, NIST, FISMA, and PCI-DSS guidelines. That’s why working with a well-equipped collection agency can become a major asset.
Furthermore, you want to work with a debt collection agency that views security as a priority. As hackers and other criminals find new ways to skim data from victims, debt collectors must keep up with those attempts and find new ways to prevent intrusion.
You also want to make sure that your data is physically safe. Data centers should be equipped to prevent physical intrusion, fire and flood damage, and other catastrophes.
At TSI, our service portfolio is compliant with NIST, FISMA, PCI-DSS, and HIPAA. We employ security specialists with years of experience and expertise in protecting data against loss and corruption. If you’re looking for a debt collection agency to not only promote healthy cash flow and collect outstanding payments but also to preserve your data, we’re here for you. Contact me now to start optimizing your revenue.
Flourishing in Changing Times: A dental office should have solid systems in place – DentistryIQ.
I totally agree with the idea behind this article.
As the world changes around us, and reality demands efficiency and effectiveness in every area of a practice. solid, workable systems are mandatory.
From my perspective, one of the most critical systems to have in place has to do with your revenue cycle. Getting paid quickly by insurance companies and patients is vital to a practice’s success in the new economy. Having systems in place to make that happen, and systems in place for what to do when they don’t are challenging, at best, for a practice to accomplish on their own.
New options have become available and affordable for even small practices to utilize technology and new tools that enable them to do very systematic follow-up on insurance claims, without having to spend staff time waiting on hold for insurance clerks to find claims, and to follow-up on patient balances. These tools will not only enable the practice to get more of their money faster than ever before, but also free up staff time to work on more productive and profitable activities.
I offer practices a free, no-obligation look at these tools to determine if they make sense (and profits) for their practice. Isn’t it worth an investment of 22 minutes to find out how much more profit your practice could be making right now?
Respond to me with the form below and request a brief, telephone meeting.