Many businesses look at the process of generating revenue as a series of distinct steps that are usually aligned with departments and functions instead of a continuous whole.
By implementing revenue cycle management solutions, they will be able to see the big picture and take appropriate measures to streamline their revenue generation processes and achieve greater and more reliable profits.
Effective revenue cycle management is not only beneficial to businesses; it can also lead to increased customer satisfaction.
What is Revenue Cycle Management?
A revenue cycle consists of a series of processes that occur between the time a company engages customers and the time it receives payments from them.
It includes marketing, customer engagement and conversion, provision of goods and services, and customer payments.
Customers who proceed along a revenue cycle usually come into contact with different aspects of a company, such as the sales department, fulfillment department, customer service department and others.
Revenue cycle management solutions are being used by businesses in many different industries, but it is most commonly associated with healthcare.
In healthcare facilities, a revenue cycle traditionally begins with contracting, and it also includes processes such as scheduling, registration, coding, payer relations, case management, billing and denial management.
Some examples of healthcare providers that have implemented revenue cycle management include Brigham and Women’s Hospital, Dignity Health and Optum Health.
How Your Business Can Benefit from a Revenue Cycle Management Solution
Improve Accounting Processes
As the following article looks at, with revenue cycle management software, your company will be able to keep better track of transactions and predict cash flow more accurately at all stages.
While some transactions may not proceed according to schedule, the software will give you more precise estimates as to when your customers will make payments and how much revenue will be generated by certain dates.
Additionally, it can help you detect and correct errors at every revenue cycle stage, resulting in greater overall accuracy.
Increase Sales Opportunities
One of the main benefits of having a revenue cycle management system is the time delay between the receipt of products and the remission of payments.
Without a revenue cycle management system with provisions for credit, you will only be able to sell your products to customers who have enough money on hand.
It is especially important for you to implement a revenue cycle management solution if your company is offering expensive products or services that consumers typically purchase on credit or pay for with insurance policies.
Receive Payments Consistently
You can also use revenue cycle management software to ensure that you will receive expected payments more consistently.
It enables you to know the time range in which each stage of the revenue cycle occurs, so that you can provide guidelines to your customers, employees and third party participants to make sure that the cycle will stay within reasonable time limits.
Presently, there is a wide selection of revenue cycle management software products available in the market.
You need to do some research and comparison shopping in order to find the right one for your company.
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to Cloud computing.