What is Revenue Assurance? (with pictures)

Malcolm Tatum
Malcolm Tatum
The general idea of revenue assurance is to make sure that any factors hindering the process of billing and receiving payments are isolated and effectively resolved.
The general idea of revenue assurance is to make sure that any factors hindering the process of billing and receiving payments are isolated and effectively resolved.

Sometimes known simply as RA, revenue assurance is an activity that has to do with making sure that all tasks associated with receiving compensation for goods and services rendered are functioning at the most efficient level possible. While the term is often used within the telecommunications industry, it is also found in a number of other business and industry settings. In general, revenue assurance will look closely at the billing process to make sure data quality is preserved, as well as examine how efficiently payments are collected and posted to customer accounts, allowing the business to proceed with making use of that collected revenue.

A business may have a team that is dedicated to the function of revenue assurance.
A business may have a team that is dedicated to the function of revenue assurance.

In the telecommunications industry, it is not unusual for a business to have a team that is dedicated to the function of revenue assurance. That team may exist within the broader structure of an accounting department, or serve as a liaison between the sales, customer service, and accounting departments. The idea is to evaluate the process used to provide the billing department with data to create accurate customer invoices, and to determine both if those invoices are being forwarded to customers in a timely manner and if payments are promptly posted once they are received. In some cases, revenue assurance also involves evaluating collections policies and procedures that are utilized when a customer invoices ages over thirty days.

Revenue assurance may focus on creating an orderly process to notify a customer that an invoice is past due.
Revenue assurance may focus on creating an orderly process to notify a customer that an invoice is past due.

The general idea of revenue assurance is to make sure that any factors hindering the process of billing and receiving payments are isolated and effectively resolved. This typically involves considering each step of the process from the initiation of the service delivery all the way through to the receipt of payment. When an issue is identified that seems to have a negative impact on the process, the revenue assurance team must develop alternative policies or strategies that overcome the issue and help expedite the overall billing and posting process. As a result, customers benefit from receiving timely invoicing for services rendered, making it possible to settle account balances sooner rather than later. At the same time, the company benefits from streamlining the process so resources are used to best advantage, which in turn helps to keep operational costs to a minimum.

Revenue assurance may also include attention to how a company deals with past-due invoices. Here, the focus is on creating an orderly process to notify the customer that an invoice is past due and hopefully result in the tendering of a payment. The process may also include procedures to deal with customers who do not remit payments in spite of several requests for payment, including the determination of when to either forward the delinquent account to a collection agency, write off the balance due, close the customer account to further purchases, or to take legal action against the client.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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    • The general idea of revenue assurance is to make sure that any factors hindering the process of billing and receiving payments are isolated and effectively resolved.
      The general idea of revenue assurance is to make sure that any factors hindering the process of billing and receiving payments are isolated and effectively resolved.
    • A business may have a team that is dedicated to the function of revenue assurance.
      A business may have a team that is dedicated to the function of revenue assurance.
    • Revenue assurance may focus on creating an orderly process to notify a customer that an invoice is past due.
      Revenue assurance may focus on creating an orderly process to notify a customer that an invoice is past due.