In April 2018, we covered the top three Dental Debt Collection Best Practices: 1) ensuring customers have dental insurance, 2) have patients sign a financial policy, and 3) work with a commercial collection agency when patients don’t pay their bills. Do you know how to create the financial policy for your business? There are a few essential aspects of an effective business financial policy. This article offers tips on how to effectively write a business financial policy.

Why You Need a Financial Policy

The purpose of a business financial policy is to provide detailed instructions and an explanation of how your business will maintain financial management activities. The financial policy should affect your customers and employees.

Determine proper Authority

As CEO, do you know who you will authorize to delegate necessary financial actions and decisions? This is an important task and should be given to someone with extremely professional skills and knowledge of business finances. This professional should be able to organize all financial aspects and be able to hire necessary employees to maintain smaller aspects of finances (e.g. counting money, transferring accounts, collecting payments from customers.).

Be Prepared For Everything

Your financial policy should provide answers and steps to cover any large or small scenario within your business, and between you and your customers. This is important for ensuring effective protection of your business in case a customer sues your business or doesn’t pay their bill. If you have detailed steps in place in the policy, then you can follow the steps to resolve the situation and be protected at the same time. (Resilium.com)

Follow Laws & Regulations

Near the end of creating your business’s financial policy, it’s important to get the policy cleared by a qualified legal professional. There are several financial laws and regulations you need to follow in your business. Most owners have limited knowledge of all the regulations involved, so it’s good to work with an attorney dedicated to business law to add any policy guidelines or modify any confusing parts of the policy.

Sources Used

Resilium.com: http://www.resilium.com.au/advice-centre/business-finance/implementing-financial-policy-and-procedure-document#.W1jTSy2ZMWp