Financial Medical Partnership

Good cash flow is crucial for business

2 Aug 2011 by FMP Accountant

Every business relies on cash flow to make purchases, pay employees and, most important of all, to make a profit. A company can look good on paper even if it has no cash coming in. But to be truly healthy financially, cash flow is essential for any business. Having cash on hand is what allows businesses to cope if anything were to go wrong. No one hopes for the worst when it comes to business, but itís good to be prepared for it anyway, in case your company experiences a drastic loss. Good cash flow will ensure your company is ready for everything. In a private medical practice, cash flow is just as important as it is for any other company. With an increased cash flow to your office, youíll be better suited for any unexpected costs that may rise without warning. Good cash flow is like a safety net; if you are bringing in enough cash, youíll be able to cope in any situation. Most medical officesí cash flows are not fully optimised because payments for care take a long time to be processed. Therefore, there is a lag time between when services are provided and when cash is received as payment. This lag greatly inhibits cash flow, although medical practices will always have payments coming in from services rendered in the past. However, cash flow is considered best when the time between invoicing and payment is kept to a minimum. Waiting more than a month for a bill to be paid is not good for cash flow. Thereís an easy way to improve cash flow in any medical practice--switching from paper to electronic billing. Electronic billing brings your payments to you faster because invoices are sent directly to insurerís computers. Thereís no long waiting for invoices to be prepared and mailed. And electronic billing also allows users to track their bills, so youíll always know the status of your payment. With an e-billing system you can expect insurance payment in five to 10 days, a turnaround time which is drastically improved from the four to six weeks required for paper billing. With payments more readily available through electronic billing, your businessís cash flow will increase. And increased cash flow brings with it peace of mind. With an e-billing system, youíll feel secure in the knowledge that your business is ready for any emergency because you have cash coming in to cover the unexpected.

Click here to contact us

Latest Articles

9 Apr 2018 - LOG's

18 Jan 2017 - Get paid for your medical reports

10 Jan 2017 - Better Cashflow Medical Practice

20 Apr 2016 - Importance of cash flow.

26 Oct 2015 - Clinic Pre-Payments

10 Sep 2015 - Patient Account Pre-Payments

23 Jan 2014 - End of paper billing for BUPA

26 Oct 2013 - Save Money with Fixed Fee Medical Billing

22 Oct 2013 - The Cost of DIY Medical Billing

17 Oct 2013 - 3 Reasons to Outsource Medical Billing

14 Oct 2013 - 5 Questions to Ask About Medical Billing in your Practice

7 Oct 2013 - The Rise in Self Pay Patients

3 Oct 2013 - New CCSD Classification for Diagnostic Tests Published

4 Sep 2012 - Patient Accounts

20 Jul 2012 - Private Medical Account System

21 Dec 2011 - Year End Accounts

27 Oct 2011 - Medical Debt Recovery

19 Aug 2011 - Private Practice Manager

11 Aug 2011 - Further improving Cash flow

8 Aug 2011 - Remote Administration of your private practice.

5 Aug 2011 - Skip tracing uk and Europe

4 Aug 2011 - Financial Medical Partnership Ltd drive for eco-friendly billing

3 Aug 2011 - Recent years have seen an increase in self-pay patients

3 Aug 2011 - Getting paid quick with less paperwork and better records

3 Aug 2011 - Electronic billing improves customer care

3 Aug 2011 - Benefits of an e-billing system

3 Aug 2011 - Benefits of an e-billing system

3 Aug 2011 - Efficient practices use e-billing

3 Aug 2011 - Updating to electronic billing and office management

3 Aug 2011 - Choosing the right accounting option for your practice

3 Aug 2011 - Practice Manager Software

3 Aug 2011 - FMPís fixed-price billing saves specialists money

3 Aug 2011 - FMP saves you time and money

3 Aug 2011 - FMP beats all billing competition

2 Aug 2011 - Don't let'Bad Payers damage your practice.

2 Aug 2011 - Self funding patients

2 Aug 2011 - Keep the cash flow in 2011

2 Aug 2011 - Paying less tax for your medical practice.

2 Aug 2011 - FMP Saves you time and money

2 Aug 2011 - Efficient practices use e-billing

2 Aug 2011 - No Success No Fee Medical Collection

2 Aug 2011 - FMP Service

12 May 2010 - Consultant Cash flow

30 Sep 2009 - Electronic Medical Billing

25 Jan 2008 - Consumer Credit Licence held by Medical Associates Limited, Credit providor for Financial Medical Partnership Limited

25 Jan 2008 - Consumer Credit Licence

29 Dec 2007 - Saving Money Using Fixed Price Electronic Billing.

29 Oct 2007 - Credittel International

29 Oct 2007 - Competitive finance arrangements for private patients being offered by doctors, to develop their self-pay market

29 Oct 2007 - Development of the Self-Pay Market in Medicine in the UK

FMP P.O. Box 1487, Surbiton, KT1 9RB, England, Company No. 03066638                
Tel 0208 398 9555