Bài giảng Medical Assisting - Chapter 18: Accounting for the Medical Office

ChapterPowerPoint® to accompany Second EditionRamutkowski  Booth  Pugh  Thompson  WhickerCopyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display.Medical AssistingChapter 181Objectives18-1 Describe traditional bookkeeping system, including single entry and double entry.18-2 Define a pegboard system.18-3 Explain the benefits of performing bookkeeping tasks on the computer.18-4 List banking tasks in a medical office.18-5 Describe the logistics of accepting, endorsing, and depositing checks from patients and insurance companies.18-6 Reconcile the office’s bank statements.18-7 Give several examples of disbursements.Accounting for the Medical Office 2Objectives18-8 Record disbursements in a disbursement journal. 18-9 Set up and maintain a petty cash fund.18-10 Create employee payroll information sheets.18-11 Compute an employee’s gross earnings, total deductions, and net earnings. 18-12 Prepare an employee earnings record and payroll register.18-13 Set up the practice’s tax liability accounts.18-14 Complete federal, state, and local tax forms. 18-15 Submit employment taxes to government agencies.18-16 Describe the basic parts of an employment contract.Accounting for the Medical Office 3Introduction Bookkeeping Systematic record of business transactions.You need an understanding of basic accounting system and certain financial management skills. A medical practice is a business, its income must exceed its expenses!4Establishing Procedures Maintain the practice’s bookkeeping.Be consistent.Use check marks as you work to avoid errors.Write clearly with same type of pen.Double check your work frequently.5Bookkeeping SystemsSingle entry systemDaily log Patient ledger cardsCheckbook registersPayroll recordsPetty cashDouble-entryAssets – goods or servicesLiabilities – amounts owed by the practiceBoth sides of the accounting equation must balanceAssets = liabilities + owner equity6Pegboard SystemEach transaction on four different formsReduces errors and saves timeCalled “one-write” systemUses lightweight board with pegsDaily log sheetsPatient ledger cardCharge slipsDeposit slips7Pegboard ProcessesAt start of day Upon patient arrival Attaching the charge slipBefore the patient leavesPayments after the patient visitEnd of day8Bookkeeping On the ComputerBenefits Saves time Performs mathematic calculation Software for taxes, calculating liabilities 9Banking for the Medical Office Banking tasksWriting checksAccepting checksEndorsing checksMaking depositsReconciling bank statementsKeep all bank materials secure because they represent the finances of the practice.10ChecksA bank draft or order for payment.Person who writes the check is payerA check must:Be written and signedInclude amount to be paidBe made payable to payeeBe made payable on demandInclude the name of the bank that is directed to make payment.11Other Negotiable Papers Cashier CheckCheck issued on bank paper and signed by bank representative.Certified checkPayer’s check written and signed by a payer and stamped “certified” by the bankMoney orderCertificate of guaranteed payment12Check CodesAmerican Banking Association (ABA) numberAppears as a fraction60-117/310Magnetic ink character (MICR) code Numbers and characters at the bottom of check 13Types of Checking AccountsPersonal accountsPhysician personal account for private financial mattersBusiness accountsFor office expensesInterest-earning accountUsed for paying special expenses such as taxes.14Accepting ChecksCheck for:Correct dateCorrect amountSignature Do not accept third-party check.One made out to the patient rather than the practice.Do not accept a check marked “Payment in Full”unless it actually does pay the complete outstanding balance.15Endorsing ChecksWrite the name of the doctor or practice on the backInclude “For Deposit Only”Add bank account number.Use ink or rubber stampPlace endorsement in the 1.5 inch area on the back of check.16Completing the Deposit SlipPost the payment to the patient ledger cardPut the check with others to be depositedFill out a deposit slipAccount number is printed on deposit slips in MICR numbers that match those on checkCan include computer printed list of checks if you include a deposit slip17Making the DepositPlan to make deposits in personAvoid sending cash through the mailObtain deposit receiptMay have to make deposits daily18Reconciling Bank StatementsCompare the office’s financial records with the bank records to ensure they are consistent.Must be done once a monthBe sure all checks written are the same and all checks deposited match on both records.19 Electronic BankingBasic tasks will be the same as in an office that uses traditional banking methodsYou are still responsible for recording and depositing checksComputer software will:Calculate new balanceReconciling the office bank statementUse computer password for security20Apply Your Knowledge What are three things should you add to the back of a check that you receive from a patient?21Apply Your Knowledge -Answer What are three things should you add to the back of a check that you receive from a patient? Name of the doctor or practice “For Deposit Only” Bank account number22 Features of Banking SoftwareRecords depositsPays billsDisplays checkbookBalances checkbook 23Managing Accounts PayablePayments for supplies, equipment, and practice-related products and servicesPayrollTaxes24Managing DisbursementsManaging suppliesUsually one person handles purchasingCombine orders if possibleFollow practice purchasing guidelinesBuy from reputable suppliesGet the best quality and the amount for which insurance companies will reimburse25Writing ChecksMake sure the checking account balance will cover the check you will writeIf you make an error when completing a check, write void in ink across the front of the checkHave the doctor sign the check and the invoice.26Types of ChecksVoucher checksStandard checkbookCashier’s checkPurchased from a bank and signed by the bank officialCounter checkAllows depositor to withdraw funds from her account onlyTraveler’s checksUsed when traveling instead of carrying large amounts of cash.27 Recording DisbursementGive each column a headingRecord each check in appropriate columnsDetermine expense category of the checkRecord the check amount28Managing Petty CashTo avoid writing checks for such small amounts use petty cash fundsUsually $50.00Write a check to “petty cash”Enter the check in the miscellaneous column of disbursement recordsGet a petty cash voucher when money is removed.Replace money once a month to keep amount at $50.00.29Understanding Financial SummariesStatement of Income and expenseProfit and loss statementCash flow statementMoney available to cover expensesTrail BalanceCombined expense column total equal to total check amount column30Handling PayrollObtaining tax ID numberCreating employee payroll information sheetsCalculating employees’ earningsSubtracting taxes and other deductionsWriting paychecksCreating employee earnings recordsPreparing a payroll registerSubmitting payroll taxes31Handling Payroll ElectronicallyCreate, update, and delete employee payroll information filesPrepare employee paychecks, stubs and W-2 formsUpdate and print employee earnings recordsUpdate all appropriate bookkeeping records, such as payroll ledger and general ledger with payroll data.32TaxesCalculating and filing taxesSetting up tax liability accountsUnderstanding federal tax deposit schedulesSubmitting federal income and FICA taxesSubmitting FUTA taxesClick for Larger View33Quarterly Tax FormWhen should this form be completed?Every three months.BACK34More TaxesFiling an employer’s quarterly federal tax returnHandling state and local income taxesFiling wage and tax statementsW-2W-3Transmittal of wages Tax statements35Managing ContractsA written agreement of employment terms between employer and employee.Include names and addressesConsiderations Starting and ending datesSignatures of both parties36Medical Assistant ContractIncludes:Description of your duties and your employer’s dutiesPlans for handling major changes in job dutiesSalary, bonuses, and other compensationBenefitsGrievance proceduresTermination procedures37Apply Your KnowledgeWhat is a W-2?What is FUTA? 38Apply Your Knowledge -AnswerWhat is a W-2? Shows the employee’s total taxable income for the year. What is FUTA? Annual Federal Unemployment Tax Return39Summary Medical Assistant You will need to understand the proper management of accounts receivable and accounts payable. The use of standard bookkeeping and banking procedures is necessary to maintain the business of the office.40End of ChapterEnd of Chapter41