DA 1.3. Flashcards
Accounts Receivable
outstanding balances owed TO the practice
Principles for Financial Arrangements
discussed with patient/ acct holder
PRIOR to treatment ( except emergency )
2 Ways Patients Pay
Per appointment
Via payment plan
Payment per Appointment
MOST effective method
( inform pt cost prior )
pt pays at end of appt
Payment Plans
PREDETERMINED prior to treatment
3 option of payment plans
Installments
Monthly Payments
Pre-paid treatment
Installments
Estimated fee is divided into 1/3
monthly payment
based on treat.
generally same day each month
paid by post dated chq or credit
Prepaid
prior to beginning treatment
only required for pt with delinquency history
Bookkeeping:
The process of classifying, recording, and summarizing business transactions
Accounting:
The process of taking bookkeeping records and making adjustments to prepare financial statements
analyzing and interpreting the results of statements
Practice Liability
anything over 90 days ( fees not collected)
Practice Liability
anything over 90 days ( fees not collected)
Write off reasoning
patient moves
patient banckrupcy
patient passes
Bookkeeping involves the management of:
Fees charged
Payments received
Balances due
5 Bookkeeping Rules
neat and accurate (ink) Fee charge entered daily ledger/journal receipts provided deposit correspond payment cheque endorse immediately
4 Components of an AR System
Patient ledger card
Daily Journal
Receipts for payment
Monthly and Annual statements
Patient ledger card
A running “statement” card
record of all amounts owing to the practice
kept in fireproof safe
Daily Journal
Fee/ payment used to create monthly summary
Includes production, payment received, outstanding balances
Receipts for payment
error= ‘void’ or sgl line
Monthly Summary Records
month production, expenses, amt received.
Annual Summary Record
1/4 statements
forms basis for dentist income tax
One Write Accounts Receivable System
manual bookkeeping system for small businessess
Collection
High Production billing for services rendered for non collected fees
-Cash flow is necessary to support the dental practice
