Accounting Responsibilities Part 1
Accounts receivable and Daily Bookkeeping
Accounts Receivable- money owed to the practice
Bookkeeping- Organized and accurate record-keeping system of financial transactions for a business
The accounts receivable total changes every time a charge, payment or adjustment is made to an account
Manual Accounting
Called the pegboard system or “one write” system
Day sheet tracks daily transactions, payment, charges for service and adjustments to pts accts (legal Doc)
Ledger card
Financial record of the pt (legal Doc) (patient Statement)
Filed alphabetically in a ledger tray
Ledgers are kept forever; they are not shredded at the end of the year
Posting
Applying a charge, payment or adjustment to a pts ledger card
< > Brackets around a number indicates the opposite of the columns usual meaning
Superbill, encounter form, multipurpose billing form or charge slip
Preprinted statement lists of dx, procedure codes & charges used for each patient’s visit
What do you with an account balance when an account is sent to collection?
Record in the adjustment column the amount of the balance being sent to collections
Banks and their services
Types of Accounts
Checking
Savings
Money Market-combo of savings acct and interest-bearing checking accts
Bank Fees
Monthly Service Fee
Overdraft protection
Returned check fee
Types of Checks
Standard business checks
Used daily to pay expenses
Certified checks
Customer ck, stamped I signed by the bank to verify amt of ck is being held in the acct to be paid
Cashier Checks
Written by the bank and sold to the customer for the amount, plus a fee charged by the bank
Traveler’s checks
Signed when they are bought at the bank and then signed again when they are used
Available in denominations of $10, $20, $50, etc.
Money Orders
Not checks, purchased at the bank or post office .
Guarantee payment to the recipient.
Stale Check
Check that has not been cashed within a certain amount of time
Banking Responsibilities
Writing Checks for Accounts payable
Money owed by the practice
Manual writing
1. Write Legibly
2. Complete all fields, including the memo. Explain in the Memo what the check was written for, in case of a question later.
3. Record on the check stub the date, amount, payee and the new balance
Manual writing
Keep the stubs in the checkbook until the end of the year
Voided checks and stubs stay I the checkbook
At the end of the year stubs are filed with the fiscal or end of the year records
Stubs are kept for the life of the practice
Receiving checks and Making Deposits
Endorse sign checks with the office name and account number on the back either by signature or stamp
Total the checks and cash received
Check the total against the payments on the day sheet
Prepare a deposit slip
Reconciling Bank Statements
Compare your records to the statement
It lists all the transactions that have occurred since the last closing date
Statements are reconciled monthly with your checkbook.
All checks and deposits listed
All amounts correct
Run a reconciliation balance
Do your numbers
Summary of Auditing & Assurance Standards as prescribed by ICAI AAS-1 Basic Principals governing an Audit This Auditing and Assurance Standard was the first standard on auditing issued by the Institute. As the name suggests, it seeks to lie down and briefly explain the basic principles which govern the auditor’s professional responsibilities and which should be complied with whenever an audit is carried out. These principles are, namely, integrity, objectivity and independence, confidentiality, skills…
Research Paper – Accountant Responsibility Introduction Accounting by definition is “The bookkeeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business” (The American Heritage). An accountant’s responsibility is not something that is equally split or separated by category. It is not something that can be defined easily or without a lot of research and thought. An accountant…
CHAPTER 1 The Role of the Public Accountant in the American Economy Review Questions 1-1 The “crisis of credibility” largely arose from the number of companies that restated their previously issued financial statements as a result of accounting irregularities and fraud. Especially responsible were the very visible Enron and WorldCom fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities…
Chapter 1-1 CHAPTER 1 MANAGERIAL ACCOUNTING Managerial Accounting, Fifth Edition Chapter 1-2 Study Study Objectives Objectives 1. Explain the distinguishing features of managerial accounting. 2. Identify the 3 broad functions of management. 3. Define the 3 classes of manufacturing costs. 4. Distinguish between product and period costs. 5. Explain the differences between a merchandising and a manufacturing income statement. Chapter 1-3 Study Study Objectives Objectives 6. Indicate…
describe the accounting standards that are having to be followed and who is responsible for setting them. The reason for accounting standards to be in place is to ensure that the effectiveness of the information is properly implemented by the users. Understanding is pertinent to the organization, so that their objectives and their ethical responsibilities are being met by accountants. Therefore, this paper will review the standard-setting process, the authoritative sources of accounting information…
Managerial Accounting Chapter # 01 Homework 1 01) How does managerial accounting differ from financial accounting? A: Managerial accounting is concerned with providing information to managers for use inside the organization. Financial accounting is con¬cerned with providing information to stockhold¬ers, creditors, and others outside of the organi¬zation. 02) Pick any major television network and describe some planning and control activities that its managers would engage in. A: Five examples…
§ This material has been reproduced and communicated to you by or on behalf of Monash University pursuant to Part VB of the Copyright Act 1968 (the Act). § The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. § Do not remove this notice. 1 Words of Wisdom “The secret of a good [seminar] is to have a good beginning and a good ending; and to have…
Accounting Exam # 2: Chapters 15, 16, 20, 22, 23, 24 Chapter 15: Management Acc. vs. Financial Acc. TABLE15-1 Comparison of Management Accounting and Financial Accounting Areas of Comparison Management Accounting Financial Accounting Primary users Managers, employees, supply-chain partners Owners or stockholders, lenders, customers, governmental agencies Report format Flexible, driven by user's needs Based on generally accepted accounting principles Purpose of reports Provide information for planning…
What Is Managerial Accounting? Financial accounting: is concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators Managerial accounting: is concerned with providing information to managers for use within the organization EXHIBIT 1-1 COMPARISON OF FINANCIAL AND MANAGERIAL ACCOUNTING Recognizes the fundamental difference financial accounting serves the needs of those outside the organization, managerial accounting serves the needs of managers…
map ... N Road 1000 feet250 mThis push pin is only accurate to city level. It does not reflect the exact job location. Employee Type : Contractor Industry : Manufacturing Manages Others : Not Specified Job Type : Accounting Experience : At least 1 year(s) Post Date : 9/24/2012 Contact Information Contact : Autologin User Description Job Purpose: Secures revenue by verifying and posting receipts; resolving discrepancies. Requirements Duties: * Posts customer payments…