Level 1
defined as the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results
accounting
to record and manage the financial affairs of the medical practice
bookkeeping
Increases in assets are termed
debits
Decreases in assets
called a daysheet, daily log, or charge journal, in which all fees for services rendered and payments are recorded every day
general ledger
consists of all of the patients’ accounts showing the amounts owed for services rendered
accounts receivable (A/R) ledger
contains records showing monies that are available for minor office expenses and monies that have been disbursed
petty cash fund
anything owned by the business, such as equipment, furniture, bank accounts, buildings, accounts receivable, and so on.
assets
monies that are owed for business expenditures (debts) such as rent or loan payments.
liabilities
a chronological (by date) history of all financial transactions for a patient.
ledger card
a cumulative listing of each patient seen in the office, services rendered, fees charged, payments made, and adjustments calculated on one day, with each patient’s current daily balance indicated.
day sheet
a daily summary of dollar amounts that remain unpaid on all accounts, that is, money that is owed to the practice but has not been collected.
accounts receivable control
called “demand deposits” because the account holder can “demand” that the bank pays by writing a check
checking accounts
funds that the office is giving to the bank to be credited to an account.
deposits
the automatic electronic deposit of wages or benefits (e.g., payroll/Social Security check) into a customer’s bank account (electronic funds transfer).
direct deposit
shows the financial position of the medical practice at a particular point in time, usually the last day of the accounting period.
balance sheet
more commonly referred to as “fixed overhead,” include such things as the cost of the building (mortgage or rent), utilities, long-term equipment purchases, leased equipment, janitorial services, and permanent staff payroll.
refers to all wages and salaries paid to employees, including deductions.
payroll
a record kept for each pay period indicating the days and hours worked for each employee.
timecard
a nine-digit number that identifies the individual business, including medical facilities.
employer identification number
a nine-digit number that identifies the individual business, including medical facilities.
before tax deductions
deductions that include long-term disability, union dues, and some charitable contributions such as United Way.
after tax deductions
amount earned before deductions
gross income
a form of insurance that is part of an employment security program providing temporary cash benefits for employees suffering a wage loss due to nonindustrial or non-work-related illness or injury.
state disability insurance
Document completed yearly by new and existing employees to indicate exemptions claimed for tax withholding purposes
Form W-4