Finance and valuation
Accounts receivable
Accounts receivable is money owed to a practice for services already provided, from patients who have not yet paid and from insurers that have not yet paid claims.
The SBA's glossary lists accounts receivable as an example of an asset and as part of current assets, which are items that can be converted to cash in less than a year. For a dental practice the balance includes patient balances and unpaid insurance claims. The ADA lists accounts receivable first among possible KPIs, along with insurance claim aging, which shows how long claims have been outstanding. Receivables tie up cash, so they affect cash flow. Owners watch the total and the age of each balance. See days sales outstanding and revenue cycle.