finance

The most common complaint received by the Consumer Financial Protection Bureau (CFPB) involves inaccurate credit report information. Credit unions are advised to update their credit reporting policies and procedures, train staff, test systems, and promptly investigate and resolve member disputes.

Here are some strategies that credit unions can implement:

1. Regular Audits and Accuracy Checks: Perform routine checks on credit reports. For example, a credit union could conduct quarterly audits to verify the accuracy of member loan balances and payment histories.
2. Effective Training for Staff: Offer training focused on data accuracy. For instance, conducting bi-annual workshops to educate staff on the nuances of credit reporting and the impact of errors.
3. Implementing Robust Reporting Software: Use sophisticated software to enhance accuracy. An example is integrating a system that flags inconsistencies in credit data for review before submission to credit bureaus.
4. Clear Policies and Procedures: Establish definitive guidelines. For instance, creating a step-by-step protocol for entering and updating member credit information and conducting regular reviews to ensure compliance.
5. Prompt Dispute Resolution: Set up an efficient dispute resolution process. An example could be a dedicated online portal where members can directly report and track the status of their credit report disputes.
6. Regular Communication with Credit Bureaus: Maintain consistent communication lines. This could involve monthly meetings with credit bureau representatives to discuss updates or discrepancies in members’ credit information.
7. Member Education: Educate members on credit reporting. For example, offering free annual seminars on how to read and understand credit reports.
8. Cross-Verification of Data: Implement a system of double-checking credit information. For example, having two different staff members verify the data independently before it is reported.
9. Compliance with Legal Standards: Adhere to legal requirements. Regular training sessions on the Fair Credit Reporting Act (FCRA) can ensure staff are up to date with compliance standards.
10. Use of Data Quality Tools: Deploy tools that detect and correct data errors. An example is using software that automatically cross-references loan payment data with bank deposit records to verify accuracy.
11. Feedback Loop with Members: Create avenues for member feedback. For instance, a section in the monthly newsletter where members are encouraged to report any discrepancies they notice in their credit reports.
12. Periodic Review of Reporting Processes: Regularly update reporting procedures. This could involve annual reviews of the credit reporting process to integrate the latest best practices and technologies.
13. Final Notice Before Credit Reporting: Send a final notice to members before reporting to credit bureaus. This notice could include a summary of the credit information to be reported, giving members a chance to review and dispute any potential inaccuracies. For example, a month before submitting credit data, the credit union could send an email or letter summarizing the member’s loan balance, payment history, and other relevant credit information, inviting them to verify or dispute the details.

These strategies, along with practical examples and the crucial step of sending a final notice to members, can significantly enhance the accuracy of credit reporting by credit unions, thus safeguarding members’ credit scores and maintaining compliance with regulatory standards.

Disadvantages of accurate credit reporting

Inaccurate credit reporting by credit unions can have several disadvantages:

1. Member Trust and Satisfaction: Inaccurate reporting can erode trust and satisfaction among members, potentially leading to loss of membership and damage to the credit union’s reputation.
2. Financial Implications for Members: Errors in credit reports can adversely affect members’ credit scores, leading to higher interest rates on loans, difficulties in obtaining credit, and potential issues with employment and housing opportunities.
3. Regulatory and Legal Consequences: Credit unions may face regulatory penalties and legal challenges if they fail to comply with laws governing credit reporting, such as the Fair Credit Reporting Act (FCRA).
4. Increased Operational Costs: Addressing inaccuracies often involves additional administrative work, dispute resolution processes, and potential legal fees, increasing operational costs for the credit union.
5. Damage to Member Relationships: Inaccurate reporting can harm long-term relationships with members, as it may signify a lack of attention to detail and care for members’ financial wellbeing.

Hospital Accounting: The Margin Squeeze Is the New Normal

For hospital CFOs and Controllers, this isn’t a “tough year.” It’s a new operating climate: razor-thin margins, higher complexity, and payers that delay, downcode, or deny.

The uncomfortable truth: you can run a clean close and still lose money operationally.

In 2026, the job has evolved. You’re not just balancing books—you’re protecting revenue while it’s still recoverable. Think of finance as revenue defense, not just reporting.

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The 4 Financial Firestorms Defining 2026

1) “Non-Labor” Inflation: The Quiet Margin Killer

For a while, contract labor got all the headlines. Now, non-labor spend is where margins go to die—because it hides across thousands of purchases.

What’s driving it:

• Pharmacy inflation and specialty drug mix

• Supply and implant costs (especially in high-volume surgical lines)

• Purchased services creep (IT, outsourced reads, vendors, managed services)

What this breaks in accounting: traditional budget variance reporting is too slow and too aggregated.

Fix it like a CFO:

• Track cost-per-case and cost-per-encounter weekly for top DRGs and ambulatory procedures

• Flag item-level and vendor-level outliers (implants, devices, biologics, contrast, high-cost injectables)

• Create a “purchased services” review lane: what used to be discretionary spend is now a major P&L driver

If CMI rises but margin doesn’t, non-labor cost drift is often the reason.

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2) The Denial Economy: Denials as a Business Model

Payers have shifted from “approve and pay” to “deny, delay, downcode.”

What’s changed in 2025–2026:

• More automated edits

• More clinical validation denials

• More prior auth mismatches

• More “site-of-service” and medical necessity disputes

Denials aren’t just delayed revenue. They’re an extra operating cost. Every appeal, touch, and rework cycle burns labor and extends A/R.

The real upgrade for 2026: move from denial management to denial prevention.

Denial prevention actions that work:

• Pre-bill scoring: “Which claims are most likely to deny?” (by payer + service line)

• Finance + CDI + Coding + UM share one list of top preventable denial drivers

• Build a “documentation sufficiency” checklist for high-risk services (inpatient admits, observation, high-cost imaging, infusion)

One simple KPI to add: Preventable Denial Rate (your controllable bucket).

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3) Self-Pay Volatility: Charity Care vs Bad Debt Gets Messy

Coverage churn, affordability pressure, and high deductibles keep pushing more accounts into self-pay behaviors—even when patients technically have insurance.

Why it matters: misclassifying accounts distorts:

• net revenue forecasting

• community benefit reporting

• bad debt reserves and write-off patterns

2026 move: stop discovering eligibility and ability-to-pay after discharge.

Practical fixes:

• Presumptive eligibility + financial assistance screening at registration or pre-service

• Segment self-pay:

  • Can pay quickly (digital early-out, payments, prompt-pay offers)

  • Needs assistance (charity/financial aid)

  • Won’t pay (later-stage recovery strategy)

• Tighten charge capture and estimates so the patient isn’t shocked later (surprise bills create disputes and non-payment)

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4) No Surprises Act Reality: A New Workstream in the Revenue Cycle

The No Surprises Act protected patients—but it also created a dispute ecosystem that adds time, tracking, and administrative overhead.

2026 move: treat NSA-related work like a mini service line:

• Track volumes, dollars at risk, resolution timelines

• Measure win-rate and net yield

• Tie outcomes back to contracting assumptions and payer behavior

If you don’t track it separately, it will quietly pollute your “normal” revenue cycle KPIs.

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Strategic Moves: Outsourcing vs In-House (Where It Pays Off)

The “Low-Balance Drain”

Chasing small balances with high-cost internal labor is often negative ROI.

Move: route low-dollar self-pay balances into:

• digital-first outreach

• text/email payment journeys

• early-out workflows that reduce phone dependency

Keep internal staff focused on high-dollar and high-skill work.

The “Complex Denial Trap”

Generalist billers struggle against specialized denial types.

Move: create a dedicated lane (internal COE or niche vendor) for:

• clinical validation denials

• DRG audits

• workers’ comp and MVA billing complexity

• high-dollar appeals

Measure success by net lift (cash recovered minus cost), not “appeals filed.”

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CFO Watchlist: Things That Can Blindside the Books

Cybersecurity Is Now a Finance Timeline Problem

A major breach can trigger public disclosure obligations and investor/bondholder scrutiny. Finance leaders should understand disclosure timelines, materiality decisions, and downstream revenue impacts (downtime, claims delays, reputational fallout).

One-Time Reimbursements Can Fake “Improvement”

Any lump-sum or remedial payment stream can inflate operating performance if you don’t isolate it cleanly.

Move: separate “recurring operating margin” from “non-recurring items” in board reporting.

Labor Is Still the Largest Cost Line

Even as non-labor rises, labor remains the biggest expense driver—so productivity, staffing models, and overtime controls still matter.

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The CFO Playbook: What to Measure Weekly (Not Monthly)

If your goal is fewer surprises at month-end, move these into a weekly rhythm:

Denials & Payer Friction

• Denial rate by payer + reason

• Preventable denial rate

• Appeal cycle time

• Underpayment variance (expected vs paid)

Cash & Throughput

• DNFB days

• Clean claim rate

• First-pass resolution rate

• A/R aging by payer and service line

Self-Pay & Uncompensated

• Charity vs bad debt mix

• Financial assistance capture rate

• Net self-pay yield (by segment)

Non-Labor / Supply Chain

• Cost-per-case for top DRGs/procedures

• Pharmacy high-cost outliers and waste

• Purchased services growth and contract compliance

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Bottom Line

Cash still rules—but prevention and precision keep it from leaking out in the first place.

If accounting only looks backward, you’ll keep finding problems after they’ve already turned into write-offs. The strongest finance teams are looking forward: predicting denial risk, isolating non-recurring noise, tightening front-end eligibility, and running supply cost control at the service-line level.

Its no secret that accounting department in most universities is short-staffed and often assigned too many tasks, many of which fall outside than their core responsibilities. They face a unique set of real-life challenges that stem from the specific nature of higher education institutions.

The Bursar’s Dilemma: Balancing Financial Recovery with Student Retention

Higher education finance has never been harder. Between the looming “Enrollment Cliff” shrinking your incoming classes and the increasing complexity of federal aid regulations, the pressure on University Accounting and Bursar’s offices is at an all-time high.

You are expected to be a financial steward, a regulatory expert, and a student success counselor all at once. When tuition goes unpaid, or “Return of Title IV” funds create instant deficits, the stress compounds.

The old model of debt collection—waiting six months and then handing students over to an aggressive agency—is broken. It alienates students, angers parents, and costs you 33% to 50% of the revenue you desperately need to retain.

NexaCollect offers a specialized Student-Centric Recovery Model. We help you navigate the specific challenges of university accounting, recovering funds without sacrificing your institution’s reputation or enrollment goals.

The Silent Struggle: 7 Top Challenges Facing University Accounting Teams

Managing a university’s ledger is not like running a corporate accounts receivable department. You are dealing with federal funding, young adults learning financial responsibility, and complex emotional dynamics.

Through our work with institutions across the country, we have identified seven core challenges that drain the time and resources of Bursar’s offices:

1. The “Return of Title IV” (R2T4) Nightmare

This is perhaps the most specific and frustrating technical challenge. When a student withdraws mid-term, the university is often required to return a portion of their federal aid to the government immediately.

• The Reality: This creates an instant, often large, balance on the student’s ledger that the student likely does not have the cash to cover. Since the student has already left campus, recovering these “clawback” funds is incredibly difficult.

2. The “Unofficial Withdrawal” Dispute

Every semester, there are students who simply stop attending classes but fail to file formal withdrawal paperwork. They receive failing grades and a full tuition bill.

• The Reality: When you try to collect months later, the student claims, “But I wasn’t even there!” You are stuck mediating a dispute between academic records and financial reality, often resulting in a standoff that ages into bad debt.

3. The “Siloed” Data Systems (ERP Disconnects)

University departments often operate on different software islands. Housing might use one system, the Library another, and Parking a third—while the Bursar uses Banner or PeopleSoft.

• The Reality: A student might apply for graduation or request a transcript before a dorm damage fee or parking fine hits the main ledger. You inadvertently clear them, only to find a $200 balance pops up a week later—after they have already left.

4. The Parent-Student-FERPA Triangle

You walk a legal tightrope every time the phone rings. Parents often pay the bills and demand to know the details, but FERPA (Family Educational Rights and Privacy Act) ties your hands.

• The Reality: You waste hours of staff time explaining to angry parents that you cannot discuss the $1,500 hold on the account because their child hasn’t signed a release waiver. It creates friction that delays payment.

5. The “Customer vs. Debtor” Conflict

Universities are unique because your “debtor” is also your “student” whom you want to retain.

• The Reality: Internal collections teams hesitate to be firm. They fear that a “hard conversation” about money will cause a student to drop out or, worse, trigger a PR backlash on social media. This hesitation allows balances to age beyond the point of recoverability.

6. Seasonal Volume Spikes

University accounting is cyclical. During the start of the semester (registration) and the end (graduation), your office is overwhelmed.

• The Reality: During these peaks, chasing aged receivables falls to the bottom of the priority list. By the time the dust settles, those 60-day past-due accounts have become 120-day accounts, making them much harder to collect.

7. Small Balance Fatigue

Your ledger is likely cluttered with hundreds of accounts owing less than $100—library fines, lost ID fees, health center co-pays.

• The Reality: It costs more in staff time to call these students than the debt is worth. Yet, leaving them on the books messes up your reporting and prevents you from closing out fiscal years cleanly.

A Strategy Tailored for the Campus

We differentiate between “Soft” Receivables (current students, parking fines, library fees) and “Hard” Bad Debt (dropouts, aged tuition). We solve the specific pain points above with a tiered recovery system.

Phase 1: The “Retention-Friendly” Nudge

• Target: Balances 30-90 days past due (Tuition installments, dorm damage fees, parking fines).

• The Tool: Step 1 & 2 Flat-Fee ($15/account).

• The Strategy: We act as an extension of your Student Financial Services. We send diplomatic, third-party demands that validate the debt without harassment.

• The Result: The student (or parent) realizes the seriousness of the hold on their transcript and pays. You keep 100% of the tuition recovered. This solves “Small Balance Fatigue” and frees up your staff during “Seasonal Volume Spikes.”

Phase 2: The “Post-Separation” Recovery

• Target: Students who have withdrawn (R2T4), graduated, or been silent for 120+ days.

• The Tool: Step 3 Contingency (40% fee).

• The Strategy: For students who have ghosted the university, we utilize skip-tracing to locate them at new addresses or places of employment. We report to credit bureaus (a major motivator for recent grads looking to rent apartments), compelling them to resolve the balance.

Targeting Specific University AR Headaches

We don’t just “collect debt”; we resolve specific General Ledger line items:

1. Title IV Returns (R2T4): When the government claws back aid, we aggressively pursue the student for the resulting deficit.

2. Perkins & Institutional Loans: We manage the aging buckets of institutional lending with strict adherence to federal guidelines.

3. Campus Ancillary Fees: From unpaid parking tickets to unreturned athletic equipment, these small balances add up. Our flat-fee model makes it profitable to collect even small $50 debts.

Real Results: Higher Ed Success Stories

The Private Liberal Arts College (New England)

• The Challenge: The college had $150,000 in “gap balances”—small amounts ($500-$2,000) left over after financial aid applied. They didn’t want to sue alumni.

• The Fix: We uploaded the list to our Step 2 Flat-Fee service.

• The Result: We recovered $92,000 within 60 days. The college paid roughly $2,500 in flat fees. A traditional agency would have taken over $30,000 in commissions.

The State University System (Midwest)

• The Challenge: A massive backlog of unpaid parking citations and dorm damage fees that were too small for their legal team to pursue.

• The Fix: We used automation to scrub the data for bankruptcies, then sent official demands.

• The Result: The “Third-Party Impact” caused a 40% immediate payment rate. The university cleared thousands of line items from their books, boosting their operational cash flow.

FAQ: The Bursar’s Guide to Compliance

Q: Does sending a student to collections violate FERPA?

A: No, provided it is done correctly. FERPA has exceptions for “legitimate educational interests” and contractors acting on behalf of the school. We operate strictly within these bounds, ensuring we never disclose protected data to unauthorized parties.

Q: Do you report to credit bureaus?

A: Yes. For “hard” bad debt (students who have left and refuse to pay), credit reporting is a vital tool. It often provides the motivation a former student needs to prioritize the debt over other expenses.

Q: Can we send “small” debts like library fines?

A: Yes. Because of our $15 flat-fee model, it is finally cost-effective to pursue small balances.

Q: Does this replace our internal billing?

A: No, it supports it. We are the “hammer” you pull out when your internal emails and portal notifications are ignored.

Protect Your Endowment and Your Enrollment

Don’t let operational challenges and unpaid tuition force you to raise fees. Recover your revenue with a partner who understands the unique culture of Higher Education.

Click here to Contact Us for a free analysis of your aged receivables.

As the business environment evolves, the role of a CFO (Chief Financial Officer) expands beyond the traditional financial management. In light of the latest technological advancements and strategic trends, here are ten things a CFO could implement to stay ahead of the curve:

Latest Technological Advancements

1. Advanced Data Analytics: Implementing sophisticated data analytics tools can help in generating deeper insights into financial data, improving forecasting, decision-making, and strategic planning.
2. AI and Machine Learning: Integrating AI and machine learning for financial processes can enhance efficiency, reduce human error, and provide more accurate financial forecasts and anomaly detection.
3. Robotic Process Automation (RPA): By automating repetitive and routine tasks, RPA allows the finance team to focus on strategic activities, significantly reducing costs and improving overall efficiency.
4. Enhanced Cybersecurity Measures: With the increasing risks of cyber threats, CFOs need to invest in and continuously update their cybersecurity infrastructure to protect sensitive financial information.
5. ESG (Environmental, Social, and Governance) Investing: As sustainable business practices gain traction, CFOs should consider incorporating ESG criteria into their investment decisions and company policies, addressing stakeholder and investor demands.
6. Continuous Planning: Replacing the traditional annual budget with a dynamic, continuous planning process allows for more agility and responsiveness to market changes and unforeseen events.
7. Cloud Computing: Migrating financial systems and operations to the cloud enhances collaboration, scalability, and flexibility, often while reducing costs related to hardware infrastructure.
8. Blockchain Technology: For businesses dealing with complex, multi-party transactions, implementing blockchain can ensure transparency, security, and authenticity in financial operations.
9. Talent Development and Retention: Investing in skill development programs, particularly in data analytics, digital transformation, and strategic decision-making, ensures that the finance team is equipped for the evolving business landscape.
10. Strengthening Stakeholder Relationships: Implementing strategies for better communication and relationship-building with stakeholders, including investors, board members, and employees, to align on the company’s financial direction and establish trust.

Implementing these initiatives requires a comprehensive understanding of the latest technologies and strategic trends, along with their potential impact on financial operations and overall business performance. As the business ecosystem is continually evolving, CFOs need to stay informed about advancements beyond 2022 and be prepared to adapt their strategies accordingly.

Cost Reduction Tips

Cost reduction remains a critical focus for CFOs, especially in challenging economic times. To emphasize cost savings, CFOs can further explore and implement strategies that maintain or even enhance operational efficiency while reducing expenses. Here are more detailed approaches focusing on cost savings:

1. Implementing Zero-Based Budgeting (ZBB): Unlike traditional budgeting, ZBB requires managers to justify all expenses for each new period, not just changes against a previous budget. This approach encourages organizations to identify the most efficient allocation of resources and can lead to significant cost reductions.
2. Optimizing Supply Chain with Technology: By leveraging AI and advanced analytics in supply chain management, CFOs can anticipate market changes and make more informed procurement decisions, potentially lowering costs by negotiating better terms with suppliers, reducing waste, and optimizing inventory.
3. Centralizing Procurement: Consolidating procurement processes across different departments or even globally can leverage the company’s purchasing power, allowing for bulk discounts and improved terms. Furthermore, a centralized system provides better visibility over spending.
4. Outsourcing Non-Core Activities: By identifying functions that are not core competencies, companies can outsource these activities, such as certain HR functions, IT services, or administrative tasks, to specialized firms, often at a lower cost and with higher quality service.
5. Energy Efficiency Programs: Implementing programs for energy efficiency within company facilities can lead to significant savings. This may include investing in energy-efficient equipment, optimizing manufacturing operations, or using alternative energy sources.
6. Implementing Telecommuting and Remote Work: By adopting a remote work model, businesses can reduce expenses related to office space, utilities, and travel. This strategy has gained popularity, particularly due to the COVID-19 pandemic, and has been seen to offer increased flexibility without compromising productivity.
7. Process Improvement Methodologies: Adopting methodologies like Lean and Six Sigma can help in streamlining operations, reducing waste, and improving the quality of output, ultimately leading to cost savings.
8. Tax Optimization Strategies: Active management of tax liabilities through legitimate tax planning opportunities can result in significant cost savings. CFOs need to constantly explore tax incentives, credits, and optimization strategies in line with current regulations.
9. Renegotiating Contracts: Regularly reviewing and renegotiating contracts with vendors, suppliers, and landlords can reduce costs. Market conditions change, and there may be opportunities for better rates or terms.
10. Preventive Maintenance: Instead of reactive maintenance, adopting a preventive maintenance approach for equipment and technology can avoid costly repairs and unexpected downtime in operations.

While cost reduction is crucial, it’s also important for CFOs to ensure that cost-cutting measures do not compromise the quality of products/services, employee morale, or the company’s long-term strategic goals. Balancing immediate financial benefits with sustainable, long-term growth is key to effective financial leadership.