Bad Debt Write-Offs
October 23, 2009
This is the 4th quarter and for tax purposes it is time to start reducing your yearly revenue to a realistic number.
This is the time that you will look at delinquent patient accounts and start writing them off as bad debt and then place the accounts out to collections.
When the accounts are collected those funds will now be counted as new income going forward.
Make sure that when you zero balance out a bad debt account that you put a note in the system that the account has been sent out for collections.
If an untrained employee sees a zero balance in your system they are apt to relay mis-information to a patient if there is no internal record of this tax liability reduction manuever.
We look forward to being your agency of choice when it comes to these types of accounts please feel free to reach Byron Hyter at 1-866-206-9589.
*Please consult with a professional CPA before using this technique to confirm that it will indeed produce the desired tax relief you seek.
This is the time that you will look at delinquent patient accounts and start writing them off as bad debt and then place the accounts out to collections.
When the accounts are collected those funds will now be counted as new income going forward.
Make sure that when you zero balance out a bad debt account that you put a note in the system that the account has been sent out for collections.
If an untrained employee sees a zero balance in your system they are apt to relay mis-information to a patient if there is no internal record of this tax liability reduction manuever.
We look forward to being your agency of choice when it comes to these types of accounts please feel free to reach Byron Hyter at 1-866-206-9589.
*Please consult with a professional CPA before using this technique to confirm that it will indeed produce the desired tax relief you seek.
Posted by Byron Hyter. Posted In : Bad Debt Write Off
I have been in the collections industry for 20 years since 1989.
My first job was with a very large collection agency called Debt Collectors Incorporated aka DCI which was the prototype for the modern collection agency.
I have worked in all facets of the collections industry from Training Collectors, Policy Development, IT Infrastructure, Management, Ownership, and Work from Home Telecommuting Technologies Beta testing.
My greatest areas of expertise are in medical and retail collections as well as debt buying.
I am happily married and have 4 kids with my wife Roberta Hyter and we live in Houston, Texas.
Current projects that I am working on besides building my medical clientele base is a collections self help/success book entitled " The Quintessential Collector" due out on Amazon.com in mid 2010.
It has been my dream to travel around the country speaking at various collection agencies to collectors about how they can improve our industry and themselves.
I abhor the mistreatment of people who owe money and I know "that there but by the grace of God go I" debt can happen to anyone.
I believe if you can show a person that you sincerely want to help them resolve their debt then they will be much more motivated to try and get the bill resolved.
Not everyone in the collections industry sees things my way but all collection agencies are concerned about excessive complaints and frivilous law suits and most of these can be avoided with a little TLC.
