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.