How do you handle an account that owes a small amount (whatever "small" means to your office), but hasn't paid after 3 statements? We stop sending statement with the intention of collecting if and when they are next in the office, or even if we are on a call with them. I haven't been using the N code on the account, I just skip over the account when I do statement preview.
I know adding N to the account will suppress statements, but I don't know what other ramifications there are to using that code. And if the account is paid, the N is not automatically removed, correct? We have to remove it ourselves, right? I think my concern is that now they owe a small amount, they come in and pay that, we forget to remove the N code, they have a huge treatment plan completed, insurance pays less than we estimated, and we never send a bill because it never shows up in the statement preview.
How do you remember to remove that N code? Or do you do things in an entirely different way?
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We do an internal collection system. After 2 statements have been sent and a 3rd one generates, we call them. If there is no response within 1 week's to, they get an overdue reminder letter; 2 weeks after they get a letter informing them they have 7 days to make payment and then we will cancel all future appointments in the account.
I do send out 2 statements even on small amounts. After that I mark them Z, as in your situation.....how we came up with that, I don't remember. But "Z" is used for small amounts that I don't plan to do the above. I created a user report that I can run at any time to see who still is Z with the balance. If it's been 2 years since we have seen them, I write off the account. If they are still in the practice I monitor that they have paid when they come in. I also generated another report for Z with $0 balances and that would tell me who has finally paid and I can take the Z off. Since I run these on the server, I can run it frequently AND quickly.
You can probably set up user reports for N and follow it in the same manner.