AR Automation for Senior Living Communities: 8 Best Practices to Improve Your AR Management

Efficient accounts receivable (AR) management is critical for senior living communities to maintain healthy cash flow, reduce errors, and allocate resources efficiently. However, traditional AR processes can often leave senior living operators and managers struggling with inefficiencies, billing errors, and late payments.

Enter AR automation—a game-changing solution designed to simplify workflows while delivering financial stability and peace of mind for both operators and families. 

In this post, we'll explore:

• The Power of AR Automation in Senior Living 
• 8 Best Practices for AR Management 
  
  • Leverage Machine Learning for Accurate Billing 
  • Use Electronic Billing and Digital Payments
  • Monitor Key AR Metrics Regularly
  • Establish Clear Billing Policies
  • Set Proactive Payment Reminders
  • Simplify Payments for Families
  • Automate Low-Value Tasks
  • Foster Team Collaboration 
• How You Can Achieve AR Excellence with Sunbound

The Power of AR Automation in Senior Living 

Sunbound’s AR automation solution is built specifically for senior care, offering advanced features like machine learning-powered workflows, billing QA tools, operator portals, and family support lines. By leveraging Sunbound, senior living operators can reduce bad debt, minimize staff time spent on manual billing tasks, and improve overall revenue capture. 

If your community is still navigating manual and outdated AR processes, this guide is for you. Below, we outline eight actionable best practices to help your team streamline AR workflows and enhance financial success. 

8 Best Practices for AR Management 

1. Leverage Machine Learning for Accurate Billing 

Billing errors are a common source of frustration for senior living communities. They lead to family disputes, delayed payments, and even lost revenue. With Sunbound’s intelligent billing QA tool, these errors become a thing of the past. The tool reviews clinical data, lease information, and billing details to proactively identify discrepancies. This ensures accurate invoicing, builds trust with families, and maximizes operator revenue. 

Pro Tip: Set up a system that proactively flags potential issues before invoices are sent. Streamlining error resolution early can reduce family frustration and improve cash flow. 

2. Use Electronic Billing and Digital Payments 

Say goodbye to time-consuming paper invoices and snail-mail checks. Switching to an electronic billing system like Sunbound offers seamless delivery of invoices and provides families with secure, flexible digital payment options. 

By simplifying the payment process, communities can improve their on-time payment rates significantly. For instance, operators leveraging Sunbound have achieved a 90%+ conversion rate to digital payments and a 95% on-time payment rate. 

Pro Tip: Offer multiple payment options, such as credit cards and ACH transfers, to ensure families can easily settle their bills. 

3. Monitor Key AR Metrics Regularly 

Keeping track of AR performance metrics can help identify bottlenecks and optimize workflows. Some key metrics include: 

• Days Sales Outstanding (DSO): Measures the average time it takes to collect payments. Aim to keep your DSO under 30 days. 
• Collection Effectiveness Index (CEI): Tracks the percentage of collected revenue. Strive for a CEI close to 100%. 
• Private Pay Accuracy: Sunbound users see over a 15% improvement in private pay billing accuracy. 

Sunbound’s reporting and analytics features provide actionable insights into these metrics, helping operators make data-driven decisions. 

4. Establish Clear Billing Policies 

Consistency is key to effective AR management. Document and communicate clear billing procedures, including payment timelines, escalation protocols for late payments, and guidelines for resolving disputes. 

Sunbound enhances operational transparency by providing an operator portal where staff members can easily access payment statuses, collections activity, and AR insights—all in one place. 

Pro Tip: Ensure every team member involved in AR management is trained on these policies to prevent errors and miscommunications. 

5. Set Proactive Payment Reminders 

Did you know that many late payments occur simply because families forget their due dates? Proactive communication is a simple yet effective way to resolve this issue. 

With Sunbound, operators can automate personalized payment reminders and follow-ups, ensuring timely collections without adding to staff workloads. Operators like Bickford Senior Living have saved hundreds of hours annually by utilizing Sunbound’s automated workflows. 

Pro Tip: Consider sending reminders a week before the due date, the day of, and at regular intervals after a missed payment. 

6. Simplify Payments for Families 

Complex payment processes can hinder collections. Sunbound makes payments effortless with a user-friendly portal that allows families to view balances, access invoices, and make payments via their preferred method—all in a few clicks. 

By prioritizing family satisfaction, senior living communities also benefit from enhanced loyalty and trust. Sunbound boasts a 99% family satisfaction rate, a testament to its commitment to improving the family experience. 

Pro Tip: Include clear payment instructions on every invoice and provide families with access to a dedicated support line for questions. 

7. Automate Low-Value Tasks 

Automation allows AR managers to shift their focus from repetitive, low-value tasks to more strategic efforts. Sunbound’s automation tools handle invoice preparation, payment tracking, and overdue payment reminders, freeing up staff time for resident care or other high-touch responsibilities. 

Pro Tip: Regularly review your AR processes to identify additional areas for automation. Even small shifts can lead to significant time savings. 

8. Foster Team Collaboration 

Efficient AR management isn’t just the responsibility of finance teams. It requires collaboration across departments, including sales, operations, and customer service. 

Sunbound’s centralized platform ensures that all team members have access to the same data, reducing redundancy and improving coordination. This collaborative approach helps address issues faster and strengthens client relationships. 

Pro Tip: Schedule regular check-ins between teams to review AR performance and address any outstanding challenges. 

 How You Can Achieve AR Excellence with Sunbound 

Improving AR management is no longer optional for senior living communities—it’s essential for maintaining financial stability and delivering a superior family experience.  

Senior living communities that adopt Sunbound’s AR automation tools consistently see measurable improvements in their operations, including: 

• A 30%+ reduction in bad debt 
• A 25+ hour per month savings in staff time spent on billing 
• A 15%+ improvement in private pay billing accuracy 
• A 10x return on investment (ROI) 

Are you ready to transform your AR workflows? Request a demo today and see how Sunbound can help you save time, reduce bad debt, and improve cash flow.