Are you losing money that should be in your pocket? Reviewing your billing and collection
procedures presents an opportunity for collecting every dollar and putting your money back where it belongs – in your bank account!
Missed revenue generally occurs in one of three different ways:
1) Process Issue: There is a systemic problem in the Revenue Cycle that is causing revenue that should be billed to not be billed.
2) Error: In the course of business, a mistake has been made that has caused normally billed revenue to be overlooked, and the revenue was not billed.
3) Fraud: An instance of fraud has occurred, causing the business to lose revenue due to an internal or external scheme.
To begin the billing and collection review process, search for missed or overlooked billing opportunities. This translates into immediate revenues that can be collected by billing for legitimately completed work. By billing the work timely, (no later than 30 days), the work product you have delivered is still fresh in the customer’s mind and represents an immediate return on your efforts and time.
A typical next step is to identify inefficient systems that are causing a systemic loss of revenue. These may take longer to detect and correct due to the sheer amount of analysis required and need for management involvement—depending upon your type of business.
Finally, implement a standard accounting policy for performing regular reviews of the billing and collection cycle, either quarterly or annually, which can highlight potential improvement areas and identify business model issues as they occur throughout the fiscal year.
CRI’s accounting outsourcing professionals can detect missed revenue scenarios and identify potential solutions that will help to increase your company’s overall profit and performance.