Posts

Introduction

Since the automation of healthcare records, many facilities have taken the automation to the back office in accounts payable (AP). The manual system is costly and time-consuming, bringing automation to the forefront as a solution. Healthcare facilities have unceasingly put up with essential products being required for supply lines. Such constant orders result in numerous purchase orders and invoices for payable accounts.

What is Accounts Payable Automation? Check out America's Best Bookkeepers

The process of Accounts Payable (AP) includes purchase orders and payment invoices. The AP system involves the electronic generation of invoices and bookkeeping entries rather than producing them manually. Electronic production allows healthcare facilities to deliver purchase orders to suppliers and receive invoices from them electronically. It boosts the process of working within the healthcare organization. However, automating the account payable process does not abandon the need paperwork because some orders require manual handling.

Why Use Accounts Payable Automation?

Until a facility sees the negative impact of paper handling, it may not see the use in automating the AP process. One incentive is that suppliers often offer deep discounts for fast invoice payment. While some facilities may hesitate to automate their AP because they consider paper-handling error-free, most will learn automation can also be. Suppliers may not be automated, making it necessary to continue manual accounts payable. Still, once a supplier can see the accuracy and speed of the automated system, they too will be on board. Healthcare facilities and suppliers must communicate and decide to automate the process together. The automated AP system is faster, requires less workforce to facilitate, and is highly accurate. The only drawback is that both the facility and the supplier have to be automated to use it between them. Check out America's Best Bookkeepers

Implementation Steps

For the successful implementation of AP automation, the following steps are required to be taken by the healthcare organization.

  • Recruit a highly capable Project Manager to run the automating AP process who will control all its aspects with efficiency and who has the ultimate authority to make decisions regarding the smooth running of the process.
  • Avoid spending much time between the training of departments and allowing them to go live for working because it will lessen the interest of departments to utilize the AP process.
  • Strive to perform both processes, i.e., automated process and current production procedure, to evaluate which process is less hassled and more productive.
  • The Project Manager should develop a networking department to handle a large number of suppliers to handle electronic purchase orders. Moreover, the networking department must oversee in-house capabilities to ensure that all the departments are interconnected with the AP process.
  • The Project Manager must have a separate IT department to manage software required to run the AP process. The software should input received invoices generated electronically into automating accounts payable software. Also, the software must produce regular reports of AP staff to reviews invoices before it is approved. The AP department must also review the working of employees involved in running the AP process.

Check out America's Best Bookkeepers  

AP as an Increasing Priority

The lack of seeing the AP process as an organizational priority is one of the most significant problems for its implementation. Accounts payable departments must consider the process as an important priority. Most healthcare facilities can afford to use the electronic system, but there is a need to change the perception of the staff handling the AP process. The facility will see positive profit in this technological investment and see growing revenue on an annual basis.

Conclusion

Awareness of automating payments is increasing among hospital administrations for potential savings and future profits. The evidence-based decision-making process in the supply chain is essential for automation solutions, and there is a fundamental opportunity for healthcare facilities to take advantage of such an automated technology. Healthcare administrations that are craving quick solutions to their payment procedure must ponder the use of AP automation and its benefits.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Hospitals and medical facilities often have a complicated billing process for their patients. Aside from the costs of healthcare, this process can cause a delay in a patient paying their bill on time or at all.  Hospitals and healthcare agencies are considering this problem and working to resolve this issue as soon as possible.

Invoicing Process

The invoicing process includes sending a detailed billing statement to the patient and the recipient making payments based on the details on the invoice. Given that the invoice is part of the payment requirement, there is an apparent interaction between payment systems and the invoicing process. However, it is important to know that an invoice is not a bank document. The invoicing process is tied to the payment system, and banks can provide additional services, such as processing, sending out invoices, and financing the supply chain. In addition to this, the process of issuing an invoice is an important step in paying the bills of the hospital. It initiates the process of payment between the medical clinic or hospitals and the patient. The impact of technology is of great importance in promoting the continuous efforts of companies to reduce the number of paper documents. The process of invoice does not usually contain many documents or paperwork; therefore, it can make the process of payment easy and painless. However, it can make the process of payment easy for both the hospital and the patients. Check out America's Best Bookkeepers

Ideas for Prompt and Painless Payment

Some techniques can be used for painless and prompt payments. Many successful businesses and organizations use these techniques.

Invoice Immediately

Patients will be more likely to make payments if they receive their bill immediately. This quick payment can also be guaranteed if the process to pay is straightforward and user-friendly. Sending invoices through the phone is a new and effective technique that is being used by many hospitals and medical clinics for painless and prompt payment. The patients are instantly sent the invoice through text, and they can pay the bill through their phone. This quick billing and payment process can also be done through email. Check out America's Best Bookkeepers

Sending Clean Invoices

An invoice must contain correct and detailed information for the patient. This should include the complete description of medicines, treatment, and other billed services and their costs. Often patients are reluctant to make a payment if they cannot understand their bill or it has errors. This will also benefit the bookkeeping process of both the patient and the healthcare facility.

Discount Plans for Patients

Discount plans can encourage patients to pay upfront or to commit to a scheduled automated payment. The idea is that if a patient pays in full or commits to an automated payment schedule, they will receive discounts.  Discount plans are not just a benefit to the patient; healthcare facilities often do not receive payment because a patient cannot afford it, and eventually, the facility will write it off as a loss. Discount plans will keep the patient’s credit clear, and though it will be at a discount, the facility will not have a loss.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers