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IT Expenditure: What Should a Realistic IT Budget Look Like in 2020?

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StrategyDriven Managing Your Finances Article | IT Budget | Entrepreneurship | IT Expenditure: What Should a Realistic IT Budget Look Like in 2020?Every business needs to have an IT department of some sort, whether on-site or remotely, in order to keep their company afloat. So much relies on computers that if they suddenly stop working, your business stops moving.

That being the case, it’s not uncommon to see much of a business’s finances go directly into making sure their IT services continue to run smoothly. But how much do you really need to be spending on an IT budget – and how much are you already spending?

There are limits to how much you should be putting out for the services you receive. This article goes in-depth with how your 2020 budget should look like for your IT software and troubleshooting needs, so you won’t spend any more than necessary. Read on to find out more!

Your IT Budget Will Increase Most at the Beginning of the Year

New year, new you – and new business. Your company is bound to shape up and adopt the “out with the old, in with the new” rhetoric. That most likely also means you’ll be getting rid of old hardware and software and investing in new tech.

Of course, this is bound to bring up the IT bill initially, as the purchasing and the installation of new equipment will be added to the tab. In most cases, however, it will pay for itself in the long run, so the initial purchase shouldn’t be seen as something scary.

Streamlined Operations Will Save You Money

As technology gets better, it becomes easier to use the software to our advantage. These streamline operations will allow you to not only better serve your customers, but will save you money as well.

There will be minimal confusion on what you need to conduct B2B and B2C interactions as well as in-house operations, and the lack of complexity will free up the IT department from working on the small stuff and allow them to focus on what really matters.

Internet Is Faster at Relatively the Same Price

Businesses need internet, and it’s good to know that each year companies are able to make their services faster. It’s even better to know that, due to competition, the internet is still being sold at the same price – or in some cases, even less.

This is good news for you as that means you get better services without the higher price, allowing you to place the money you’ve saved onto other important aspects of your business.

To make sure you stay up to date on how much you’re spending on IT needs, you’ll want to use an organizational tool such as a NetSuite price cheatsheet to make sure you know where every penny goes!

Stay Driven. Be Successful

You know what you should be spending on your IT budget for your computer needs, so now you’ll be able to watch your money flow and still get things done. But that’s only the beginning of what you need to know to help your business succeed.

At StrategyDriven, we help focused and goal-oriented business owners like yourself take on the competition and succeed in their field. We offer help from all angles, including formatting and executing business strategies, management and organizational programs, and more.

Ready to get started? Click on any of the tabs on our site to learn more about what we have to offer you. We’re sure that we can help your company to win!

Unsecured Business Loans: A Comprehensive Guide

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StrategyDriven Managing Your Finances Article | Entrepreneurship | Unsecured Business Loans: A Comprehensive Guide

Have you ever felt the need to apply for some sort of business funding? If yes, then I am sure you must have gone through a million options before you came to the right conclusion about your loan. For any business, whether it is a big or small business, funding can actually make a huge impact. Getting the loan that suits your business best is very important. There are various types of loan options available for you to choose from but one option that can really work for you faster is an unsecured business loan. Here is a comprehensive guide that can fully educate you about an unsecured business loan.

What Is It?

What exactly is an unsecured business loan? If we look at the basic definition then this is one type of loan that actually does not in any way require the business owner to pledge any sort of asset or collateral against the debt they receive. The usual protocol for when you get a loan from the bank is to secure any sort of leverage that the business has to the lender to ensure some sort of guarantee. Unsecured business loans are a sort of financing option for those businesses that do not have or do not want to put up collateral for the loan. Through this type of loan, they can still access it and use it in their business in their own way. To get this type of loan all you need to do is apply for financing and also have a good credit score. It is the easiest way to raise funds for your business.

Types Of Unsecured Business Loans

There are certain types of unsecured business loan options out there that you can pick and choose according to the needs of your business in every way. The time period and the amount of loan can be huge indicators for the type of unsecured loan that is the most viable option for you. With options like term business loan, the candidates are mainly given a large amount, which can be repaid over a period of one to five years. This is a type of unsecured loan that is best used to pay off substantial one-time purchases. Another option that works best for short term financing resolutions is an unsecured business line of credit that is indeed a more adaptable finance choice, which is perfect for numerous purposes. Rendering to your long term and short term financing needs, you can check which type of unsecured business loan works best for your company.

Reasons For Need

The question of the need for this type of loan is very important. Identify the clear and concise need for an unsecured business loan that you are going for. An unsecured business loan can have many uses in your company. See whether you want the loan to increase the size of your inventory or to improve the cash flow of your business. Some businesses even require this type of loan to increase the quantity of their staff. Every business has different needs for using an unsecured business loan. Many business owners might get a unique opportunity for which they might need extra funding. In that case, they then go for an unsecured business loan as it can help them in completing whatever they want. Many companies that want to create a good credit rating so that they can prepare their business for a much bigger loan in the future also use this type of loan.

Selection For Lenders

There are many lenders who actually offer an unsecured business loan. When opting for this type of loan make sure that you actually look into all the options for lenders that you have. The reason for this is that many lenders tend to vary and have a different interest rate that they give. Work your options and see what kind of lender best suits your needs and gives you the most favourable conditions for the loan. Times have changed and now when you need a loan the only option available is not your bank anymore. There are various online sources that also offer safe and secure lending procedures that you can go through. As the application procedures for banks and institutions like these have tightened up, people are looking for alternative lenders. You can go for alternative commercial finance lenders or peer-to-peer lenders according to the terms and conditions that suit you best for your unsecured business loan.

Things To Consider Beforehand

There are various things that you must consider before you go for an unsecured business loan. Things like the time period when you need the funds matters a lot. Some places might offer you funds pretty quickly while some actually take their sweet time. When exactly you need the funds needs to be clear so that then you can work according to your timeline. Another very important factor is that make sure that you are absolutely aware of all the terms and conditions of the unsecured business loan that you are about to acquire. The reason for this is that if there are certain conditions that are unfavourable then you should know about them from the get-go. You may be required representing certain financial documents to get your loan approved also. These are things you must know beforehand so that you can work around them before you actually do get the loan. Once you have gotten that loan then there is no going back so make sure you are mindful of such things in the beginning.

May Require Personal Guarantee

The level of risk attached to an unsecured business loan is much higher than a secured one. Thus, it is possible that you may be required to give some sort of personal guarantee against the debt you are to obtain. This means that in the case that your business is not able to pay back the loan it has gotten then the holder of that loan must take a personal responsibility to pay that loan back. The structure of a personal guarantee can vary from lender to lender. Apart from a good credit score the lender will look into your situation and see if you will be able to take a personal guarantee against your loan. This is done to put the lender at ease and lower their level of risk as well.

These are the main and basic principles that are attached to an unsecured business loan. This type of loan can actually be very beneficial to give your business the boost that it needs to move forward. Just make sure you are fully aware of an unsecured business loan before you actually go for it.

Why Your Business Needs An Online Bank Account

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StrategyDriven Entrepreneurship ArticleOnline banking has become increasingly popular over the years with many people choosing to manage their finances online. This is because there are many benefits to online banking such as easy access to your finances, online transfers and much more. Surprisingly, many businesses still don’t use online banking, making their lives a lot harder. If you run a business but don’t yet have an online bank account, you should keep reading or go to this site to find out why you should make the change.

It Is Easier To Manage

When you run a business, you often have to take some time to look through your finances. When you have a lot of paper bank statements in front of you, cheques and all sorts of other materials, it is a lot easier for things to get lost. This is why you should think about opening a BB&T online bank account if you want to be able to manage your business finances a lot more easily. BB&T have a range of checking and saving accounts for businesses that come with a lot of account extras which you should take advantage of. These include online banking and customizable checks.

Faster Payment Of Bills

There’s nothing worse than paying a bill and finding out that the cheque never made it to the company in the post. This can often mean that late charges are added on and there are usually other consequences. If you want to be able to pay your bills in a faster and much more efficient way, you should think about opening up an online bank account for your business.

Save Time

How much time do you spend going to the bank each week or sending one of your staff members there? When you have an online bank account, you’ll rarely need to go to your local bank branch and so you’ll save yourself some more time. This will give you a lot more time to focus on the other important parts of your business and you won’t need to make sure that you get to the bank before it closes.

Get Paid Faster

As a business owner, you often need to make sure that all of your clients have paid you within the time frame needed to ensure that your business is profiting. If it takes a lot longer for your clients to pay you, you might find that this can have a negative impact on your figures. Make sure to get yourself an online bank account if you want your clients to be able to pay you a lot faster. You will love seeing the money enter your bank account almost immediately and you’ll be able to ensure that everything is paid on time.

Get Started Now

In this day and age, there really is no reason for you not to be using an online bank account for your business. There are so many advantages of doing this and if you are still visiting your bank branch a few times a week then you are wasting valuable business time. Think about finding the best online bank account for your business and you’ll love the perks.

What is a Revenue Cycle Management Company? Everything to Know

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Have you ever wondered how health care providers manage their finances?

Or perhaps, you run one and are looking for an effective solution to the complicated system of revenue management.

Whichever you are, you probably know that health care providers are constantly chided for their high-cost services towards patient treatment. But as noble and unprofitable as some might expect these services to be, the truth is, hospitals and clinics are unable to function efficiently without maintaining a healthy financial system.

And so, in order to keep things productive, they incorporate a system of revenue cycle management (or, RCM).

So, what is RCM and what purpose does it serve?

Let’s find out.

Revenue Cycle Management: A Definition

It is a process through which health care providers are able to track a patient’s payments or revenue cycles from their initial appointments, right up to their final payment.

To do this, a hospital may employ a revenue cycle management company that has expertise in practicing this very process. These companies generally follow very specific steps to track a patient’s payments before their initial visit, during their visit, and after their visit.

So, what does an RCM company’s process look like?

The Pre-Visit Process

Beginning a patient’s revenue tracking before their initial visit might seem redundant, but it is actually very essential. It is where the whole process begins, and only with pre-visit tracking can there be a wholesome analysis at the end.

This part of the process mainly involves:

  • Demographic Verification: For new patients, it involves getting accurate details about their current address. In the case of old or returning patients, it involves verifying their current whereabouts and documenting any changes in residence since the last visit.
  • Eligibility Check: This involves verifying whether the patient is eligible for insurance.

These initial communications help set the stage for a fruitful RCM process.

What Comes Next?

After the pre-visit formalities are complete, the companies have to obtain documentation from the health care provider. This is done to check whether the insurance companies are liable to fulfill the payment. This process looks something like this:

Obtaining and Verifying Clinical Documentation

During a patient’s treatment (or after the treatment), their clinical documents must be recorded and submitted. In order to be eligible for insurance payment, it must comply with the ICD-10 standards.

Once the documentation is analyzed, it will be determined what portion of treatment is payable by the insurance company, and what must be billed directly by the patient.

The Superbill Payment

This is the most important step in the medical billing process. After the verification is complete, the superbill must be paid off. The company ensures that the payment is completed and paid to the respective physician or health care provider.

Collection of Payments

The remainder of the patient’s payment is collected from the patient. It is now common practice to ask the patient to complete payment during registration itself.

Post-Visit Practices

Now, after payments are issued there are still some things that need taking care of. Claims need to be processed, seen through, and recorded.

Follow-Ups and Additional Claims

This is done when insurance companies fail to comply with all the specified payments. RCM companies will get in touch (via phone calls, emails, etc.) to remind and ensure that these payments are made. Inquiries will be made into failure to pay and investigated if necessary.

Verification of Receipts

Once the payments are complete, receipts must be verified to ensure that all parties have complied with their payments. This ensures that the process has been true to its purpose of collecting and remitting payments to the appropriate parties.

Data Analysis

Finally, to complete the process, all data will be compiled and analyzed to derive meaningful insights. These insights will then be used to understand how to make the system more efficient, effective and quicker.

This step is crucial to maintaining a stable financial system for health care providers, while allowing them more information relating to elements like performance, cost, etc.

Utilization Review

While examining data, the necessity of the medical services will also be reviewed. This enables a service vs cost analysis.

Why Do Providers Outsource RCM or Medical Billing?

So you might now wonder, why providers choose to outsource this process to a company. The truth is, it can be a complicated, time-consuming process that often requires external expertise. Some other perks include:

Improved Patient Care

It allows hospitals and clinics to do what they do best without the added hassle of revenue management. The exclusive focus on patient care makes for a more efficient system.

Less Room for Error

Since the whole process often calls for a different, more financial form of expertise, it lowers the chances of billing errors. A third-party company can often add fresh perspectives to analytics and insights that an insider might sometimes miss.

Cost-Effective

Whether it’s with regard to RCM technology or the cost of setting up an in-house system, a company is likely to be far more cost-effective in the long run. Also, the lower risk of errors is also a contributing factor to better finances.

Challenges Along the Way

The revenue cycle management process is not without its challenges. The intricate system of billing management, maintaining accurate charge descriptions and complying with coding requirements are very real issues that RCM companies face.

Even claim compliance can often be time-consuming and tedious when dealing with difficult insurance companies or patients. However, with the right company and the right technologies, your medical systems can take a step in the right direction.

Like this article? Check out our ‘insights’ category for more valuable perspectives on all things business.

Dodge The Issues That Cause A Young Company To Crash

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StrategyDriven Managing Your Finances Article |Business Success|Dodge The Issues That Cause A Young Company To CrashDid you know that over ninety percent of businesses fail in their first year on the market? This shows you how risky setting up a company can be. It’s very much a lottery whether your company is a success and survives for the long term or even beyond the first couple of years. Why is this? Well, first, there’s the competition. Thousands of new businesses open each year and it makes sense that customers are not going to buy from them all. Instead, they are going to pick the ones that are providing the most appealing options or the best price. In some cases, it’s possible that the winner won’t have either of these factors on their side but will still come out on top. We’ll discuss why that might happen a little further down.

The good news is that once you open your business on the market, you can avoid most of the issues that cause it to fail. This can be related to financial decisions, marketing and promotion or the routes you take to build up your brand. Let’s get started and we’ll begin by exploring visibility.

Poor Visibility

If your business fails, then it could be because you have a poor level of visibility. Visibility is all about how easy it is for customers and potential customers to find your business online. This will depend on your marketing efforts and how successful your campaign has been. Some businesses have no trouble getting to page one of the SERPs for their targeted keywords. Others will struggle to get to page ten and most consumers won’t even get up to page two. The bottom line here is that if you don’t make the right choices with your promotion and marketing then you will be dead on the water.

Mistakes here can be both minor and complex. For instance, a minor mistake is thinking that marketing is one and done. It isn’t and you should be thinking about incorporating it into your monthly business budget. A more complex mistake is based on the type of campaign that you choose to run. Ultimately, you need to make sure that you are taking steps to run a targeted promotional campaign. Unless your business is already successful, you’re not going to be able to focus on every area of the market. You need to research your target audience, identify where they are online and build your marketing campaign around this. For instance, you don’t need to include every social media network if your target customers don’t use Facebook and Instagram.

Overspending

It is possible that you are overspending in your business. If you end up in the red running your company, then you’re not going to last much longer on the market. You need to make sure that you are keeping your business books healthy. While a business can start with zero profitability and making a loss, this is never going to be a sustainable business model. Instead, you need to think about working to ensure that you are making money with your company. So, how do you avoid overspending?

Well, first, you need to make sure that you are aware of the issue. You can do this by hiring an accountant. An accountant will be able to keep a check on spending in your company and make sure that you are staying in the green. They can also help you keep your business model more efficient by telling you where you can afford to reduce spending as well as where you might need to increase it. A lot of business owners will avoid hiring an accountant in an effort to save money.

It’s certainly true to say that an accountant can be expensive, particularly if you take one on fulltime. However, you can save by outsourcing this solution to another business. That way you can cut the cost and still have an expert on the phone whenever you need their advice.

If you are not going to hire an accountant, then you at least want to make sure that you are using an online digital solution. The software can be used to track your spending, keep a check and manage the books. This is also useful when the tax man comes around.

Running Out Of Money

Of course, it is possible that you are making a profit but you’re also running out of money in your business model. This will usually be the case where the budget isn’t enough to sustain the high levels of demand. The instinct here will be to cut back and make sure that you keep costs down by limiting your business model. However, this will typically be a mistake. If you do this, then what you end up with is a business that is unable to grow and that remains stagnant. Customers will quickly turn away from a company like this because you won’t be able to offer anything new or interesting.

Instead, what you need to do is make sure you are injecting more cash into your business model for expansion. Once you fund the expansion you can use your new levels of profitability to pay the cost. You may be able to attract the interest of an investor to fund your business growth. If you can’t do this, you will need a loan. You can explore things like Ondeck loan reviews to find the right option here and ensure that you are getting a good deal. Be aware of interest rates as well as fees as this will determine whether a loan is the right choice for your company.

We hope this helps you understand some of the reasons why a business may fail on the market. If you take this advice, you can avoid some of the common problems and ensure that you don’t have to worry about your business taking the next hit. Instead, you can rise from strength to strength, growing your company. Remember, to ensure longevity, you need to have a plan for your business in place. Always start with a five-year plan and then build from there.

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