Physical Therapy Management – Cash Flow Management
It is easy for small businesses like a physical therapy business to go under. This is not due to lack of patients but mostly due to bad cash flow management. An important physical therapy management skill is efficient handling of cash.
Here are some physical therapy management guidelines a new business owner can follow to ensure survival of the clinic due to effective handling of the cash flow.
Physical therapy management should ensure fast collection. When billing insurance companies, be sure to follow their timelines so as not to miss any billing cycles. Special attention has to be paid to make sure that reimbursement guidelines are followed strictly. Claims not paid on first submission means that cash flow could be delayed or worse, denied.
Don’t sit on those checks. Once you’re paid, in checks, deposit them on the date written on the checks. A solid physical therapy management tip for cash flow management is to make sure that you do not have to wait longer than the three days clearing time for the money to be available to the account.
When disbursing money, do it slowly. In handling payables, physical therapy management can pay on the due date itself. There is no need for bills to be paid early unless there is a discount. Slow down your disbursements by paying invoices on the day they are due. Also consider using a credit card for small expenses. This will allow you to wait for 45 days before you pay for any purchases done using a credit card.
Also, a good physical therapy management practice when it comes to cash flow is not issuing advances to employees. Make it a policy not to give cash advances so as not to disrupt the cash flow management.
Do not keep extra money in the bank. This physical therapy management tip for managing cash flow should be followed since money parked in the bank could be better used somewhere else. Find out how much is the minimum balance required for the account and stick to it.
Remember, inventory sitting in the office is not cash. In an efficient physical therapy management system for cash flow, stock up supplies in meager quantities. Office supplies can be bought just about anywhere so there is no need to stock up on it.
Knowing that you are keeping a tight lid on your cash flow can make physical therapy management easier. At the end of the day, it is always good to know that cash is readily available if an opportunity or emergency should arise.