1Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Bank Deposits Prepared at the end of each day Prepared at the end of each day Balanced with the collections for the day Balanced with the collections for the day Added to the check ledger as soon as deposited Added to the check ledger as soon as deposited Endorse the checks Endorse the checks Check the amount of the deposit to the receipts on the day sheet Check the amount of the deposit to the receipts on the day sheet Use the date that the deposit was made to the bank_ NOT the date filled out Use the date that the deposit was made to the bank_ NOT the date filled out

2Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Bank Statements Statements are produced by the bank each month. Statements are produced by the bank each month. Statements should be reconciled upon receipt. Statements should be reconciled upon receipt. Check ledger must be updated to reflect interest paid and all service charges or bank fees. Check ledger must be updated to reflect interest paid and all service charges or bank fees.

3Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Petty Cash Funds These funds: These funds: Are for small miscellaneous expenses of the office Are for small miscellaneous expenses of the office Require receipts for payments made Require receipts for payments made Should have a replenishing amount established by office policy Should have a replenishing amount established by office policy Should be used only as approved by office policy or by indication of authorized personnel Should be used only as approved by office policy or by indication of authorized personnel

When petty cash funds are used for office expenses: When petty cash funds are used for office expenses: A receipt should be brought to the office A receipt should be brought to the office The medical assistant should put the change in her pocket The medical assistant should put the change in her pocket 4Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved.

5 Financial Records These records should be: These records should be: Maintained in an orderly manner for ease of retrieval as needed Maintained in an orderly manner for ease of retrieval as needed Moved to storage according to office policy or instruction of physician or accountant Moved to storage according to office policy or instruction of physician or accountant Kept separately from medical records Kept separately from medical records Be stored in a manner that will allow easy recovery Be stored in a manner that will allow easy recovery

Payroll Records Handling of payroll records involves frequent reporting activities. Such records include Social Security number for the employee. Number of withholding allowances claimed Amount of gross salary All deductions for social security and Medicare taxes; federal, state, state disability insurance and state unemployment tax, where applicable.

7Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Payroll Deductions Payroll deductions for employees are based on federal and state regulations and the information on the W-4 form. Payroll deductions for employees are based on federal and state regulations and the information on the W-4 form. Employee may elect to take fewer or no allowances, in which case the tax withheld will be greater and a refund may be due Employee may elect to take fewer or no allowances, in which case the tax withheld will be greater and a refund may be due

8Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Required Withholding Social Security taxes Social Security taxes Federal and state withholding taxes Federal and state withholding taxes Medicare taxes Medicare taxes Federal Insurance Corporation of America – this is NOT related to SS. This is your FEDERAL tax Federal Insurance Corporation of America – this is NOT related to SS. This is your FEDERAL tax

9Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. Payroll is calculated as: Gross salary (based on wages earned) – Required deductions = Net pay Employer need to know Marital state Number of withholding allowances claimed

10Copyright © 2007 by Saunders, an imprint of Elsevier Inc. All rights reserved. All payroll deductions should be shown on the check stub or in an attachment. All payroll deductions should be shown on the check stub or in an attachment. The Payroll Check

Patient Accounts/ledgers We have spoken about daysheets, patient ledger cards There are different billing methods (page 415) A computer generated statement An encounter form A typewritten statement A photocopied statement

Cycle Billing Procedures A regular system of mailing statements should be put into place Statements should be sent at least once a month. Some send statements immediately after treatment

Cycle Billing Many physicians prefer to use the cycle billing system, which calls for the billing of certain portions of the accounts receivable at given times during the month instead of the preparation of all statements at the end of the month (page 416)

Cycle Billing Advantages Avoiding once a month peak work flows Stabilizing cash flow

Collections Compliance From time to time it becomes necessary to collect balances from patients. Telephone call, right time, right manner can be successful. Collection Letters or Reminders with a statement enclosed. Personal Interviews with patients

Collections Compliance Speical Collection Situations Tracking skips – “moved no forwarding address” – If all attempts fail turn over to a collection agency. Claims against estates – A bill owed by a deceased patient. Wait for appropriate time and after the name of the administrator or executor is named.

Collection Compliance Bankruptcy Chapter VII bankruptcy is usually a “no asset” situation. There is little purpose in pursuing collections.

Collection Compliance Collect through the courts Use a Collection Agency

Banking Services Bank online Check account balances Transferring funds between accounts Paying bills electronically Disadvantages – have to learn software, cost of online baking varies from bank to bank

Banking Services Types of Accounts Checking accounts Savings accounts Money market savings accounts, requires a minimum balance from $500 - $5000, draws interest at money market rates, higher percentage rate than regular savings accounts