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 Confidence is communicated and mistakes are minimized when the medical assistant is knowledgeable about financial matters

Accounting Accounting: system of recording and summarizing business and financial transactions Bookkeeper: recorder of transactions

Accounting Accounting Systems Debits Credits Single-Entry Accounting Increases assets Credits Decreases assets Single-Entry Accounting Not self-balancing

Accounting Accounting Systems Single-entry accounting General ledger Accounts-receivable (A/R) ledger Accounts-payable (A/P) ledger Petty cash fund Payroll records

Accounting Accounting Systems Double-entry accounting Books must balance Assets Anything owned by business Capital Original investment Property owned

Accounting Accounting Systems Double-entry accounting Liabilities Monies owed by business Proprietorship Owner’s net worth or equity

Accounting Accounting Systems Pegboard accounting Manual system Layered forms Accurate Easy to learn Write-it-once process

Accounting

Accounting Accounting Systems Computerized accounting Increases accuracy Provides electronic billing Generates reports easily

Patient Accounts Ledger Card/Patient Account Chronological history Financial transactions of patient’s account Charges Payments Adjustments Contract adjustment Uncollectable debt adjustment Refund adjustment Running balance

Patient Accounts

Daysheet Cumulative Daily List of: Patients seen Services rendered Fees charged Payments made Adjustments calculated Balances owed

Daysheet Prepare the Pegboard; Post Charges, Payments, and Adjustments, and Balance the Daysheet Procedure 15-1

Accounts Receivable Control Computer Balance of Outstanding Accounts A/R Balance on Daysheet Must be equal If not equal, error must be found

Accounts Receivable Control Computerized Reports Summary of information stored in database Daysheet Patient ledgers Various reports Easier and quicker Crosscheck transactions

Accounts Receivable Control Locating Errors Missed figure Miskeyed number Transposed number; amount divisible by 9 Posted in wrong column; amount divisible by 2 Sliding a number

Cash Funds Change Drawer Make change for cash payments Issue receipts Balance drawer

Cash Funds

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

Cash Funds Petty Cash Petty cash record Amounts received Expenditures Balance Establish, Record, Balance and Replenish Petty Cash Fund Procedure 15-2

Stop and Think Case Scenarios Review the scenario “Determine an Accounting System” State what questions you would ask to obtain information necessary to make this decision Name the advantages and disadvantages of each accounting system

Stop and Think Case Scenarios Review the scenario “Obtaining Change for a Patient” What would you do? Consider the suggestions listed and comment on each choice stating which action you would take and why