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Viewing & Understanding Short Term Liability

Understanding the Short Term Liability Report in Aesthetic Record

Updated yesterday

The Short Term Liability (STL) Report is a powerful tool that helps you track financial obligations to your patients, such as prepaid services and dollar credits stored in their digital wallets. Understanding this report is crucial for accurate financial planning and ensuring you can meet all future service obligations.

What is Short Term Liability?

In the context of your aesthetic practice, short term liability represents the services and dollar value you owe to patients who have prepaid for treatments or have credits in their wallet. These are considered "liabilities" because they represent future obligations your practice has committed to fulfill.

Accessing the STL Report

  1. Log in to your Aesthetic Record account via the Web

  2. Navigate to Business Insights > Sales > Payments & Liabilities Reports

  3. Select Short Term Liability from the reports menu

  4. Set your desired date range using the calendar selector

Understanding STL Columns

The STL Report contains several important columns to help you track different aspects of your liabilities:

  • Dollar Value

    This column shows the total amount of dollar credits that entered patient wallets during your selected time period. This represents new dollar credits added to wallets within the date range you're viewing.

  • Balance Units

    This column shows the total amount of units reflecting for the given product in the patient wallet.

  • Wallet Balance Dollar Value

    This column displays the current balance of dollar credits in patient wallets, regardless of when those credits were added. This value remains constant across different date intervals in the STL report, changing only when credits are added or used.

    ⚠️ Important Note: The Balance Dollar Value represents the actual dollar amount you currently owe to patients, making it critical for financial planning.

  • Balance Service Value

    This column reflects the total remaining value of all services that have yet to be redeemed by patients. Like the Balance Dollar Value, this represents your current obligation for future services, regardless of when those services were added to wallets.

Practical Uses of the STL Report

Financial Planning

The STL report provides a clear picture of your outstanding financial obligations to patients, helping you ensure adequate cash reserves to fulfill these commitments.

Tracking Redemption Rates

By comparing the original values with the balance values, you can track how quickly patients are redeeming their credits and prepaid services, which can inform your cash flow projections.

Identifying Unused Credits

Monitor patients with long-standing unused credits or services who might benefit from outreach to encourage them to book their treatments.

Reconciliation

Use this report during monthly or quarterly financial reconciliation to verify that your recorded liabilities match actual patient wallet balances.

Best Practices for Using the STL Report

  1. Regular Review: Check this report at least monthly to maintain awareness of your practice's liabilities

  2. Date Range Comparison: Compare different time periods to identify trends in prepayment and redemption rates

  3. Detailed Investigation: Click on individual entries to see specifically which patients have credits and what services remain to be redeemed

  4. Expiration Policies: Consider implementing expiration dates on wallet items to manage long-term liabilities

  5. Financial Forecasting: Use the balance values to project future service delivery requirements and staffing needs

Common Questions

Q: Why doesn't my Balance Dollar Value change when I modify the date range?

A: The Balance Dollar Value column shows your current liability regardless of the time period selected. It represents what you currently owe to patients in dollar credits, not what was added during a specific time frame.

Q: How can I see which specific patients have dollar credits?

A: You can view individual patient wallet balances by going to the patient's profile and selecting the "Patient Wallet" tab.

Q: Does the Balance Service Value include services that have expired?

A: No, the Balance Service Value only includes active, redeemable services. Once a service expires (if you have expiration settings enabled), it will no longer appear in this value.

Q: How are membership benefits reflected in this report?

A: Prepaid services added to patient wallets through membership benefits are included in the Service Value and Balance Service Value columns.

By regularly reviewing your STL Report, you'll maintain better control over your practice's financial obligations and ensure you're always prepared to deliver on the services your patients have purchased.

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