Optimizing Account Receivable Recoveries During Tax Time

January 1, 2023

Tax time for collections agencies is a time when conversions and recovery increase. This window of time when debtors may have additional funds is prime time for collection success. Discussing why this is and offering more insights, Bryan Campbell, Business Development Manager at IC Systems, joined Closing the Books host Tyler Kern. 

“From an activity standpoint, it’s a seasonal lift. Inbound volumes are up over 10%, conversion rates by 7%, and payment size by 20%,” Campbell shared. 

Campbell attributed this rise in recovery to consumers wanting to meet their obligations. “There’s a psychology to it. People get a refund and have the means to pay. Very rarely do consumers not want to at all. It’s just they don’t have the ability to do so.”

“If they are exploring it or unhappy with previous results, it’s time to get into it. The first refunds hit around early February, and you want to be ready to benefit when the money is there.” 

Campbell also advised that turning accounts over to collection should happen after 90 days. From there, collectors can begin collecting on the account in about 35 days after the debt validation notice and the time consumers have to dispute it. “Most debts are collected within the first 90 days of delinquency. It decreases after that. If you wait longer, the value decreases. It’s much lower after 120 days.”

With strategies in place and the ability to negotiate settlements, many businesses can see Accounts receivable (AR) recovery increase during tax time and all the months of the year. 

IC System has over 85 years of experience in medical and dental debt collection, rent recovery and other business collections.

Recent Episodes

Ace Gardner and Jacob Lewis discuss NIL Deals and Transfer Portals
View episode

College sports is undergoing a significant transformation with the advent of Name, Image, and Likeness (NIL) rights and the increasing prevalence of transfer portals. These changes are reshaping how college staff operate, presenting both opportunities and challenges. With the rise of NIL deals and transfer portals, understanding the behind-the-scenes impact on college coaching staff…

sales process automation
View episode

Amid the rapid pace of technological advancements, sales processes are undergoing significant changes. Companies are increasingly pressured to enhance efficiency, accuracy, and customer satisfaction. According to Forrester’s 2023 report, a staggering 90% of global business buyers experienced stalled purchasing processes due to economic headwinds, emphasizing the importance of price transparency and the need for…

thaly palanisamy as new president
View episode

Stenograph, LLC is pleased to announce Thaly Palanisamy as president. In his role, Mr. Palanisamy will guide Stenograph in executing its strategic vision: Empowering the capture, preservation, and accessibility of verbatim records. “Thaly’s leadership skills, combined with the Stenograph strategy deployed by our talented team, will ensure success as we charter our course for the…