Chapter 15 Bookkeeping

Objectives Review the learning and performance objectives for this chapter By the end of this chapter, demonstrate the procedures in the textbook and the job skills in the workbook

Heart of the Health Care Professional Service Communicate confidence and minimize mistakes when assisting patients who have billing or payment questions.

Bookkeeping Process Record the financial affairs of a business Monitor patient accounts Managed care contracts Stop loss Withhold

Bookkeeping Systems Single-entry accounting Debits Credits Increases in assets Credits Decreases in assets Not self-balancing

Bookkeeping Systems Single-entry accounting General ledger Accounts-receivable ledger Accounts-payable ledger Petty cash fund Payroll records

Bookkeeping Systems Double-entry accounting Books must balance Assets Every debit has a corresponding credit Assets Anything owned by the business Liabilities Monies owed by the business

Bookkeeping Systems Double-entry accounting Capital Proprietorship Original investment Property owned Proprietorship Owner’s net worth or equity

Bookkeeping Systems Pegboard accounting Manual system Layered forms Write-it-once process

Bookkeeping Systems Computerized accounting Increases accuracy Electronic billing Generate reports easily

Bookkeeping Process

Patient Accounts Ledger card/patient account Chronological history Financial transactions of patient’s account Charges Payments Adjustments

Daysheet Cumulative daily list Patients seen Services rendered Fees charged Payments made Adjustments calculated

Daysheet Procedure 15-1 Prepare the pegboard Post charges, payments, and adjustments Balance the daysheet

Accounts Receivable Control Balance of outstanding accounts A/R balance on daysheet Must be equal If not equal, error must be found

Accounts Receivable Control Computerized reports Easier Quicker Crosscheck transactions

Accounts Receivable Control Locating errors Missed figure Incorrect number Transposed number Sliding a number

Cash Funds Change drawer Make change for cash payments Issue receipts Figure 15-6

Cash Receipt

Cash Funds Petty cash Cash for small, unanticipated purchases Office supplies Delivery fees Setting up petty cash fund Initial amount of cash

Cash Funds Petty cash Petty cash record Expenditures Replenishments Establish, record, balance and replenish a petty cash fund Procedure 15-2

Stop and Think Determine a bookkeeping system Review the scenario State what questions you would ask to obtain information necessary to make the decision Name the advantages and disadvantages of each bookkeeping system

Stop and Think Obtaining change for a patient Review the scenario What would you do? Consider suggestions listed and comment on each choice stating the action you would take and why