Revenue Cycle Definition Business

The accounting system recognizes a sale as an increase in revenue along with and increase in cash or a receivable.

Revenue cycle definition business. The revenue cycle a recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales. The process in which healthcare facilities manage the entire billing lifecycle of the patient is called revenue cycle management rcm. The revenue cycle is a term used in accounting and business that describes the journey of a product or service from its humble beginnings to its sale. In retail firms inventories need to be decreased as well this type of transaction is automatically processed using a computerized system.

The cycle can be defined as all administrative and clinical functions that contribute to the capture management and collection of patient service revenue it is a cycle that describes and explains the life cycle of a patient through a typical. A healthy revenue cycle produces a healthy practice but the process can quickly become ineffective without the proper approach. Revenue cycle management is the process used by healthcare systems in the united states and all over the world to track the revenue from patients from their initial appointment or encounter with the healthcare system to their final payment of balance. Revenue cycle management rcm is the financial process utilizing medical billing software that healthcare facilities use to track patient care episodes from registration and appointment scheduling to the final payment of a balance.