BASIC COLLECTING & FINANCIAL PRACTICES
Covers basics of accounting, bookkeeping, and banking procedures. Provides the foundation for the management of accounts payable, financial records, and methods of preparation for employee payroll and business taxes. Includes expanded discussion on manual procedures for accounts receivable management for both private patients and insurance companies.
Successful completion of all Quarter 1 courses. Recommend students meet prerequisites for college-level math.
- Define accounting, describe the accounting cycle, and explain the importance of accounting information as it relates to the financial health of a medical practice.
- Identify and define asset, liability, and owner’s equity accounts, including revenue and expense, and record a group of business transactions in various formats such as columnar, T accounts, general journal and general ledger.
- Explain the use of debits and credits, and prepare financial statements including a trial balance, income statement, statement of owner’s equity, and balance sheet and cash funds.
- Correct entries using the ruling method and correcting entry method, and journalize and post adjusting entries for a service type enterprise, involving adjustments for supplies used, expired insurance, depreciation, and accrued wages.
- Recall the steps in the accounting cycle, journalize and post closing entries for a service-type enterprise, and prepare a post-closing trial balance.
- Identify a day sheet, a daily journal, patient ledger card; balance both a day sheet and monthly bank statement.
- Explain the process of ordering supplies and paying invoices, discuss the types of payroll records, and explain which taxes are withheld from employee paychecks and perform employee payroll.
- Identify and/or perform expanded billing procedures including payment at time of service, credit policy, and manual billing methods and cite the legal considerations in extending credit and credit collection.