Review/Prep Ch 63.

Exclusive provider organizations (EPO's) are another form of?

"closed panel" dental insurance; the patients are offered no option other than receiving their treatment from a dentist who is a member of the plan's network of providers.

Checks that are written carelessly or with conflicting numbers can be?

"raised" or otherwise altered

must complete an employee's withholding exemption certificate (W-4 form) at the following times:

(1) at the beginning of employment (2) within 10 days of any change of status (such as marriage), and (3) before December 1 of the following year

The three most commonly used methods of calculating fee-for-service benefits are?

(1) usual, customary, and reasonable (UCR) fees (2) schedule of benefits (3) fixed fee schedules.

How does income tax withhold work?

-All employees must file a federal income tax return before April 15 of each year for tax withholding -A portion of the estimated tax is withheld directly from each paycheck during the year. -By the end of the year, the amount withheld should approximate the annual tax that the employee will actually owe. Amounts withheld are determined from a schedule in Circular E. These amounts are based on earnings and the number of exemptions claimed. -It is the responsibility of the employer to withhold this tax and to remit it to an authorized bank or directly to the IRS.

When paying in cash what must you do?

-Although few patients pay for dental treatment in cash, it is necessary to be alert to the needs of cash-paying patients. -When you are accepting payment in cash for services, it is essential to ensure that the office has correct change available for the patient. -The patient who is paying cash must be provided a written (or computer-generated) receipt.

How does a packing slip work?

-The packing slip travels with the shipment and, at the destination, is used to confirm that the shipment is complete. -It is matched with the invoice before payment is made. -When materials are received, they should be carefully checked against the packing slip to ensure that everything has been received as ordered, and that everything is in good condition. -Discrepancies or damage should be reported immediately to the supplier.

Divided payment plans are arrangements by which the patient pays and an example/procedure for this?

-a fixed amount on a regular basis; -For example, orthodontic treatment usually is paid for on a divided payment plan. -These arrangements are made at the time of the case presentation. -After the patient has accepted the proposed treatment plan, the business assistant will work with the patient to develop a divided payment plan

A collection agency makes additional efforts to?

-collect the balance on an overdue account. -The agency's charge is a percentage of the amount collected, and this is deducted before the balance is remitted to the dental office. --Some attorneys also attempt to collect overdue accounts in exchange for a percentage of the amount collected.

Once the appropriate person has been reached, the business assistant should do what when making a collection call?

-identify himself or herself and wait. -The person who is being called knows what is wanted, and it is best to let that person make the first statement. -The debtor may react with anger or hostility. -It is important to remember that this is part of a defense mechanism and not a personal attack. -Regardless of what the debtor says or does, do not become argumentative or defensive. Try to be understanding but firm and never permit yourself to be insulting, no matter what the provocation -Note any agreement made over the telephone on the patient's account ledger. Promises should be followed up carefully, and if they are not kept, the account should be taken to the next step in the collection process (Box 63-1).

For accounting purposes, when a check from a patient is returned, the amount of that check must be "charged back" against the patient's account. Do this by?

-making an entry in the ledger, noting the date on which the check was returned. -Then make an adjustment, which acts as a charge and increases the account balance by the amount of the returned check. -It also is necessary to make a check register entry; here, the amount of the returned check is subtracted from the checking account balance.

Collection Telephone Calls can be?

-more effective than letters because they provide direct contact with the debtor and therefore are not as easily ignored. -When you are placing a collection call, be certain to speak only to the person responsible for the account. -Never leave a message that could be misunderstood, could reveal confidential information, or could be considered damaging!

Each morning, the change fund is?

-placed in the cash drawer, and it is used as needed during the day. -At the end of the day, the change fund is removed and placed in safekeeping. -Money from the change fund does not become part of the daily deposit, and the amount in the change fund at the end of the day must be the same as it was at the beginning of the day.

Parties Involved in Dental Insurance?

-subscriber who carries the dental insurance plan or the dependent of the subscriber, such as a spouse or a child. -The group is the union or employment organization that has negotiated the dental insurance as part of its benefits package. -The carrier is the party (usually an insurance company) who pays the claims and collects the premiums. -The provider is the dentist who provides the treatment to the patient

Before you pick up the phone for collection calls, it's critical that you have all the?

-the specifics of the debt you are calling about. Having the facts in front of you keeps you in control. -You don't want the conversation to get disrupted by a question you can't answer. -Many debtors know how to use this to their advantage. Suddenly they can't discuss payment on their account without details you don't have and they don't "have in front of them" either. So, the call is over.

The accounts receivable report is a?

-valuable management report that shows the total balance due on each patient account plus an analysis of the "age of the account." ---This shows how much of the balance is current (recent charges not yet billed), 30 days old, 31 to 60 days old, 61 to 90 days old, and older. -This information is helpful in tracking and taking action on overdue accounts.

The written stop payment order must reach the bank bookkeeper before the check is presented for payment. These orders are usually in force for

90 days and bank will charge

What are the do's and dont's of collection letters?

DOS: • Individualize letters to suit the situation. • Design your early letters as mere reminders of debt. • Always imply that the patient has good intentions to pay, until lack of response over a period of time proves otherwise. • Send letters with a firmer tone only after you have sent one or two friendly reminders. DONT'S: • Use the same collection letter for a patient with good paying habits as for one who is known to neglect financial obligations. • Place an overdue notice of any kind on a postcard or on the outside of an envelope. This is an invasion of privacy.

What is fixed overhead and

Fixed overhead includes business expenses that continue at all times; these are costs (such as the rent or mortgage, utilities, insurance, and salaries) that are incurred regardless of whether the dentist is in the office, and whether professional services are actually being provided. Salaries that are not fixed are those of professionals who work as independent contractors, on a commission basis, or as part-time workers, who are employed on an hourly rate "as needed."

What are the two types of government programs? And what does each one do?

Medicare is funded by the federal government, but the terms of the program and what is or isn't covered is established by each state government; Medicaid Dental Coverage serves low-income children, pregnant women, the disabled, and the impoverished elderly. Medicaid is a voluntary partnership program between the federal government and individual states.

what does NSF stand for what is it called when a check it returned and what does it mean when a check didn't go through?

Non sufficient funds; returned item; bounced

Who and when did it get signed the "Patient Protection and Affordable Care Act," into law. And what is it?

On March 23, 2010, President Obama; intended to expand coverage, control healthcare costs, and improve the healthcare delivery system

This estimate is prepared in duplicate what does each one have?

One copy is provided to the patient, and the other is retained with the office records.

What are personal deductions and what are not deducted?

Personal deductions, such as the employee's contribution to health or life insurance coverage, an automatic personal savings plan, or pretax retirement contributions, may be taken directly from the employee's earnings.; workers' compensation, federal unemployment taxes (FUTA), and state unemployment insurance (SUI). These amounts are not deducted from the employee's earnings, except in states in which a portion of the SUI tax is paid by the employee

Another form for collection is what and whats the draw back on it?

Small claims court; Sometimes, arrangements are made so that the business assistant, not the dentist, appears for the hearing. One drawback to the option of seeking a small claims court judgment is that even if the court rules that the debtor must pay, it is still up to the practice to collect the amount of the judgment.

In the payroll check what is included?

The gross(total pretax), net pay (plus deductions must equal the earned gross pay), withholding statement must be included with each payroll check.

Some practices add a finance charge (usually 1 percent) to accounts that are not paid within 30 days of receipt of the first statement. When a charge such as this is incorporated on an account, or when more than four payment installments are set up, the patient must be notified of this policy in advance with a?

Truth in Lending form

Preferred provider organizations (dental PPO's) are?

a "closed panel" type of plan. This is a variation of a fee-for-service practice; These fee-for-service patients are charged the dentist's usual fees.

Account management begins with?

a clearly defined financial policy established by the dentist

The fee for service represents?

a fair return to the dentist for professional treatment provided

Consumer credit reporting agencies commonly referred to as credit bureaus or agencies provide?

a financial profile of the patient.

A packing slip is?

a form used in a warehouse operation that lists the items to be shipped and the recipient of the shipment. The packing slip may also include the amount due for a credit order and any shipping and handling charges, as well as a shipment control number

petty cash is?

a limited supply of cash that is kept on hand to reimburse patients with change. It is also available to meet frequent small expenses for which immediate cash is needed (e.g., postage due).

A walkout statement should be provided with?

a postage-paid reply envelope, allowing the patient to mail the outstanding payment within a specified time period

The monthly statement represents?

a request for payment of the balance due on the accounts receivable. Under this plan, the patient is expected to pay the balance in full on receipt of the statement. With a manual system, this statement frequently is a photocopy of the ledger card that shows the information about charges for treatment provided, payments, and account adjustments. A computer-generated statement shows this data, plus an age analysis of the account balance

A certified public accountant (CPA) is often employed on a?

a retainer basis; -It will be the CPA's responsibility to handle the major financial records, such as annual profit and loss statements, tax returns, and other government reports. -These reports are based on financial information supplied by the dental practice. -This information must be accurate, up-to-date, complete, and presented in a usable format. -The business assistant can help the accountant by having the required information and records in good order and ready on time.

A direct reimbursement plan is?

a self-funded program in which the individual is reimbursed by his or her employer on the basis of a percentage of dollars spent for dental care provided; allows beneficiaries to seek treatment from the dentist of their choice. Under a direct reimbursement plan, no insurance carrier is involved; employee pays the dentist, and the employer reimburses a portion of this expense. The amount of reimbursement depends on the benefit design established by the employer.

Within 30 days of the end of the calendar year or on termination of employment, the employee must be furnished with?

a statement of total earnings and taxes withheld for that year (W-2 form)

A statement is?

a summary of all invoices (charges), payments, credits, and debits for the month

Some delivery services that handle C.O.D. merchandise will?

accept a check for the exact amount; others insist on cash. If a check is acceptable, it should be made out to the supplier and not to the delivery service.

With a computerized accounts receivable system, data entered into the system are used to maintain

account histories and practice records

The accounts receivable system manages?

all money owed to the practice

Accounts payable systems manage what and what are expenses and disbursements?

all of the money that is owed by the practice; -Expenses and disbursements determine the cost of doing business in the dental practice. -Expenses are called overhead, which is the actual cost of doing business. As these expenses are incurred, they become accounts payable. -Disbursements are the payments made for these accounts payable. It is the responsibility of the office manager or the business assistant to ensure accuracy in all accounts payable transactions within the practice and in the management of day-to-day expenses and disbursements.

The form can be designed to include?

all of the procedures completed in the office along with the insurance CDT code. The form provides space for the dentist or assistant to note the treatment provided at the visit. The form consists of three color-coded pages (white for the patient's permanent record, yellow for the office or patient to submit to the insurance company, and pink for the patient's copy)

At the end of each workday, the entries on the daily journal page are compared with the appointment book to ensure that?

all patient visits have been entered. Computerized systems total all figures automatically and can print various reports as needed. The total for receipts must match the amount in the cash drawer minus the change fund. If these two numbers do not match, or "balance," it is necessary to go back and find the error.

What are traditional insurance plans?

also referred to as the indemnity plan, provides benefits for dental treatment that the covered individual has received from his or her own dentist. These plans are considered fee-for-service and come with limitations and copayment options

Capitation plans (dental HMO's) involve

an arrangement in which a dentist (dental office, several dental offices, a network of dentists) has contracted to provide dental services for the plan's members; dentist paid monthly a fixed amount per dental plan participant who has selected the dentist as their treatment provider; In return, it is the dentist's obligation to provide any and all needed dental treatment for these individuals during the negotiated time frame.

Federal regulations require that an employer must make certain deductions from?

an employee's pay, and that the employer also must pay certain payroll taxes. These federal requirements are explained in the Circular E booklet issued by the Internal Revenue Service (IRS). Most states publish similar booklets that explain the requirements for state income tax.

A deposit slip is?

an itemized memorandum of the currency and checks taken to the bank to be credited to the practice's account. This slip is generated from the computer after all checks have been posted

Realistic financial arrangements should be made in?

an unhurried manner with the person responsible for the account. These arrangements are confidential and should take place in a private setting where others cannot overhear the discussion.

Dental insurance may be considered as?

another method of payment, although it must be emphasized that the patient is responsible for the balance not covered by the insurer. To help alleviate concern for the patient, a pretreatment estimate form can be submitted to the insurance carrier. This would provide information on what the insurance company covers and any additional patient payment or copayments that will be required.

This information must be? (bookkeeping)

arranged systematically so it is accurate at all times and provides the data needed for effective management of these financial matters

Payment at the Time of Treatment Under this payment policy, patients are?

asked to make payment in full for treatment provided at each visit. This system helps control practice costs by improving cash flow and reducing the cost of sending statements or using other collection methods

Petty cash should be?

balanced and replenished on a regular basis. Because a voucher is completed for each petty cash payment, the sum of all the vouchers plus the cash on hand should always equal the total amount of the petty cash fund

A credit report of the responsible party may?

be requested

The business assistant conducts?

bookkeeping procedures on a daily basis to maintain dental practice accounts

A computer can generate this report(accounts receivable/collections) automatically with a?

breakdown of account age. Although creation of the report is not automatic with a pegboard system, it is possible to generate one manually.

The use of walkout statements improves?

cash flow because it speeds payments. It also reduces the number of statements that must be prepared and mailed at the end of the month.

If the practice has a computer system that handles disbursements, this information is entered by?

category and is used when disbursements are made and records for financial management of the practice are maintained.

Payment of major expenses should be made by?

check, with records kept up to date and balanced at all times. Minor expenses are handled through the use of petty cash. All expenses should be documented as completely as possible with bills and receipts or canceled checks.

Through positioning of the daily journal page, ledger card, and a carbonized receipt, all financial records for each patient visit are?

completed by writing the information just one time

Entries for additional records, such as daily totals and monthly summaries, must be completed

completed manually. The totals then must be calculated and verified for accuracy.

Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985. This entitles the subscriber to?

continue the same coverage, but he or she is responsible for paying the premiums. If any question regarding eligibility arises, the carrier should be contacted before routine dental care is started.

The employer also is required to match the contribution. Thus, for each FICA dollar withheld from the employee's wages, the employer also?

contributes a dollar. Both contributions are forwarded quarterly to the federal government to be credited to the employee's account.

Under the Federal Insurance Contributions Act (FICA), commonly known as Social Security, the employer is required to?

deduct a certain percentage of the employee's gross pay. This is a fixed amount regardless of the number of exemptions

When a new patient calls to schedule an appointment, this is the time to inquire about?

dental insurance and to inform the patient to bring identification card and benefits booklet to the appointment. This material should be reviewed to determine eligibility and available benefits for coverage

With a restrictive endorsement, which may read "For deposit only to the account of [the name of the payee]," the check can be?

deposited only to the account of the named individual. This type of endorsement makes the check nonnegotiable, that is, it can be deposited only to that account, and if it is stolen, it cannot be cashed.

Before a case is presented to the patient, an estimate is?

developed as part of the treatment plan

The same categories are used to organize?

disbursements in the check register and for budget purposes

When a dentist agrees to be a bankcard merchant, the participating bank will?

explain the procedure of verification and submittal.

A raised check is one on which?

extra numbers have been added, for example, changing the check's value from $100.00 to $1000.00. Specifying the amount accurately in both words and numbers is one way of safeguarding against this.

usual fee refers to?

fee that the dentist charges private patients for a given service The dentist files a confidential list of these fees with the carrier. The carrier uses this information, called prefiled fees, to determine the customary fee for the area.

Category headings, which are determined by the dentist, are placed on what and what happens at the end of the year?

file folders to store expense records in an organized manner. At the end of the year, this expense documentation is removed and filed, in the same categories, with other business records for that year.

A change fund or petty cash fund is a?

fixed amount of cash (usually $50 or less) that is maintained in small bills so that money will be available when a patient pays in cash

Dental office overhead consists of all expenses incurred in running a dental practice; these expenses are categorized as?

fixed overhead and variable overhead. Fee schedules must reflect both of these overhead factors, plus a fair return to the dentist.

It is essential that the information be entered into the (computer)system accurately because it is used to?

generate account totals and daily and monthly summaries. These and other management reports are automatically calculated and produced by the system

The money the dentist receives for professional services rendered is calculated as?

gross income (the total of all professional income received). Gross income minus the payment of all practice-related expenses yields the dentist's net income from the practice. Unless the dentist earns an adequate net income, he or she will not be able to afford to maintain a practice.

As part of the organization of expenditure records, expenses are classified into categories; these usually include?

groups such as professional supplies, laboratory fees, salaries, rent and maintenance, utilities, and business office supplies

The dentist may choose to obtain bonding insurance on staff members who?

handle practice funds by receiving and banking patient payments or writing checks. This insurance will cover a loss, and the employee can be prosecuted under the law for any such theft.

After the dentist has completed the case presentation to the patient, the business assistant may be asked to handle the discussion of fees involved. At this time, the business assistant presents?

he necessary fee information and makes financial arrangements with the patient to the satisfaction of both the dentist and the patient.

All collection letters should be phrased?

in a firm, positive, business-like manner that makes every effort to persuade the patient to pay the debt and allows the patient to avoid embarrassment

Payments received by mail are entered?

in the same manner as those made in person.

An invoice may be?

included with the shipment, or it may be mailed separately, but it is a detailed list of goods shipped or services rendered, with an account of all costs on an itemized bill.

The charge slip contains ?

information about the patient, such as name, account number and previous balance, current charges, and payment

A credit report of the responsible party may be requested. If this is the dentist's policy, the responsible party should be?

informed before the credit report is applied for

Increasingly, offices are switching to electronic practice management systems because they have the capability of?

integrating technology with accounting

Before writing checks to pay these accounts(payable), the business assistant removes all?

invoices and statements from the accounts payable folder. These statements and invoices are verified by checking the numbers and amounts of the invoices received from each supplier during that period against the monthly statement. It also is necessary to verify that all payments, credits, and returns have been properly entered

What is a check and payments are made on demand when?

is a draft, or an order, drawn on a specific bank account for payment of a specified sum of money to the payee or to the bearer; when the check is presented to the bank, that amount of money must be paid provided the account includes sufficient funds to cover the amount of the check.

The business assistant should never accept a C.O.D. package unless what?

it is something that has been ordered and is expected. When paying for a C.O.D. delivery, the business assistant should receive a signed receipt of payment.

reasonable fee is one that is considered

justified by special circumstances necessitating extensive or complex treatment. These apply to unusual cases

The amount in the fund should be large enough to?

last weekly but not large enough to invite theft. In most offices, this amount is no more than $50. If more than this is needed within 1 week, it is likely that the concept of petty cash is misunderstood, or that the cash is being misused

All financial agreements should be recorded on the account?

ledger

table of allowances or a schedule of allowances. A schedule of benefits is a?

list of fixed specified amounts that the carrier will pay toward the cost of covered services. A schedule of benefits is not related in any way to the dentist's actual fee schedule

managed care is a method of providing?

low- to medium-cost healthcare coverage to everyone. Under these plans, the type, level, and frequency of treatment can be limited, and disease prevention is encouraged. The plans also try to control the level of reimbursement for services.

Accounts receivable management, which is frequently referred to as bookkeeping involves?

maintaining financial records regarding all transactions related to collecting fees for professional services

The registration form gathers all the basic financial information needed to?

manage the account history and complete the patient identification portion of an insurance claim form

Pegboard accounting, also known as a one-write system, is a?

manual bookkeeping system in which all records are completed with a single entry

What does the traditional insurance plan do?

means that the patient pays a flat fee for the dental visit, but has an annual limit on coverage for dental spending, and specific coverage limits that may apply to individual dental procedures. The total dollar amount of coverage one of these policies provides is typically limited by its deductible and maximum benefit

Payment at the Time of Treatment Patients must be?

notified of this type of payment plan before the first visit. In many practices, this is completed during the initial telephone conversation. Under this plan, cash, checks, and credit cards are accepted for payment.

The credit card charge form is what and what are the procedure for a pt. paying in credit card ?

ompleted, and a copy is handed to the patient; -Credit card charges are not part of the regular bank deposit. Instead, they are managed in accordance with the instructions from the institution issuing the credit card. -The bank charges a percentage rate as a service fee for handling these transactions. This is referred to as discounting because at the end of the month, the service charge is deducted, or discounted, from these funds. - An adjustment entry is made in the checkbook to accommodate this discount as a practice expense. This difference is not subtracted from the patient's account.

In the dental office, the accounts payable are routinely paid?

once or twice a month

The maker of the check is who?

one from whose account the amount of the check will be withdrawn. The maker of the check, or his or her authorized agent, must sign the check on the signature line

customary fee is?

one that is within the range of the usual fees charged for the same service by dentists with similar training and experience within the same geographic area (such as a city or county)

Once an invoice has been verified, it should be?

paid promptly unless other arrangements have been made

A rubber stamp with the appropriate restrictive phrase and the payee's name may be used in place of?

payee's signature. As a safeguard, such a restrictive endorsement should be placed on all checks as soon as they are received.

The financial report provides information on the consumer's?

paying habits and accounts placed for collection, plus other pertinent information such as lawsuits, judgments, and bankruptcies.

Patients' accounts can be handled in several ways, such as?

payment at the time of treatment, payment by monthly statement, and divided payments

A practice may offer a discount if and an example?

payment is made in full before the beginning of planned treatment; For example, if a patient is having a complete upper and lower denture fabricated at a cost of $1400, the dentist might extend a 5 percent discount ($70.00) for payment in full. In this case, the patient would pay $1330.00 in advance, for a savings of 5 percent off the total charge. To enter this discount into the bookkeeping system, the total fee of $1400 is posted. Then an adjustment representing the discount is entered for $70.00. This adjustment acts as a credit and leaves an account balance of $1330.00 to be paid.

Another option is to pay for dental services with a credit card. Credit card transactions are listed as?

payments, but the posting code is different from that used for cash or a check. The credit card system is now electronically able to verify immediately if the card is valid and that the credit limit has not been exceeded

Throughout the day, all transactions are?

posted to the bookkeeping system. In addition to maintaining the patient account record, this posting generates the daily journal page entry. A computerized system automatically totals this form and uses the information to generate other practice reports.

The daily journal page is the?

practice record of all patient transactions each day; this record includes the name of each patient seen and any charges, payments, and adjustments made to that account

Financial arrangements can also be?

printed on a computer-generated statement. Some practices add a finance charge (usually 1 percent) to accounts that are not paid within 30 days of receipt of the first statement.

Financial arrangements are made with each patient when?

professional services are performed

All payments must be entered?

promptly into the bookkeeping system so they are recorded in the account history and on the daily journal page.

It also is important that the data stored on the hard drive of the computer are?

protected by being backed up (copied for safekeeping) daily. An additional set of backup files (zip drives or flash drives) should be stored in a safe place outside the office. These backup records are vital in the event of theft, fire, or other disaster that makes it necessary to reconstruct information that may have been lost from the system.

Totals from monthly summaries are carried forward to an annual summary. By keeping these records, the dentist and the accountant at any time can?

quickly tell what the practice expenses have been to date. This is important information for management, budgeting, and tax purposes.

The resulting financial arrangements should be what and what must the patient realize?

reasonable to both parties. The patient must realize that once these arrangements have been made, he or she is responsible for following through as agreed

From the accounting perspective, payroll refers to what and why is it crucial?

refers to the amount paid to employees for services provided during a specified period of time; crucial because payroll and payroll taxes considerably affect the net income of a dental practice, plus they are subject to laws and regulations.

All employers are required to file an "Employer's Quarterly Federal Tax Return." This is?

report of all taxable wages paid during the quarter. Withheld taxes and FICA contributions must be deposited regularly; the frequency of these deposits depends on the total amount owed;

The completed charge slip is?

returned to the business office, and the information is posted to the accounts receivable system. Charge slips are a part of the audit trail. A charge slip should be generated for each patient. At the end of the day, a number must account for each charge slip. In this way, the dentist knows that all patient visits have been entered into the system.

individual practice association (IPA) is an organization that is formed by?

roups of dentists or, in some cases, dental societies for the primary purpose of collectively entering into contracts to provide dental services to enrolled populations; provided on a caption basis; may provide care to patients who are not covered by the contract. Treatment of patients who are not covered is provided on a traditional fee-for-service basis.

Advantages of computerized check writing include?

savings in time, reduced possibility of error, and ease of storage and retrieval of specific information

A check that is to be redeposited should be listed on a?

separate deposit slip and clearly marked so that it is not credited twice to income. When the check is redeposited, this should be noted on the account history, and the amount of the check again should be subtracted from the balance.

Customarily, the business assistant writes the checks but does not what?

sign them; the prepared checks are given to the dentist for his or her signature. The office manager who has been given limited power of attorney by the dentist and has proper authorization on file with the bank may sign checks.

A walkout statement is?

similar to a receipt, except that it shows the current account balance. It is provided to patients who do not provide payment in full

Dentistry today is costly, especially in the area of?

specialty procedures such as implants, surgical procedures, and orthodontics.

As a safeguard, checks should be?

stamped immediately with a restrictive endorsement, which prevents anyone from cashing a check if stolen.

To facilitate the handling and storage of records, the invoices are?

stapled to the statement that covers them.

The vouchers and attached receipts are?

stapled together, and the date and total are noted. These are filed under the "Business Office" expense category.

Basic practice financial policies should include?

statements on gathering financial information, presenting the fee, making financial arrangements with patients, and collecting overdue accounts.

A current account balance is maintained at all times, and this information is used to generate?

statements, insurance claims, and other collection efforts. In a manual system, patient account records are maintained on account ledger cards. In a computerized system, these are organized as account histories or ledgers.

A petty cash voucher must be?

submitted for all payments made from the fund. Each voucher must include the date, the amount spent, to whom it was paid, for what it was spent, and who spent it. A receipt should be attached to each voucher

All collection efforts must be handled?

tactfully and in keeping with the dentist's wishes and policies, because the dentist is ultimately responsible for the actions of his or her employees. The dentist does not want to lose a patient's good will because of poor collection tactics.

Sometimes goods are shipped cash on delivery (C.O.D.), which means?

that at the time of delivery, the person who receives the goods must pay the cost of the merchandise plus a C.O.D. handling fee

Statements and invoices that have not yet been paid are placed in?

the accounts payable folder

The two types of bookkeeping systems used in a dental practice are?

the accounts receivable and accounts payable systems.

Statements should be routinely mailed at the same time each month. If the task is too large to be handled at one time, the practice may use cycle billing. In cycle billing. What is cycle billing?

the alphabet is divided into parts, and statements for patients with last names in each part of the alphabet are mailed at specified times during the month.

All receipts should be deposited daily. When the amount of receipts exactly matches the amount of deposits, the account has met?

the auditor's critical test to verify bookkeeping accuracy

Endorsement (sign/signature) is made where?

the back left side of the check and must match the name shown on the face of the check. A check signed in this manner has a blanket endorsement, and anyone holding that check may cash it (including someone who may have stolen it).

Patient account records are organized on?

the basis of information regarding the responsible party.

All checks must be accounted for in a specific expense category. With a computerized system, posting to the appropriate category is part of? And for a pegboard system?

the check-writing process; With the pegboard system, check-writing expenses are posted into categories at the time the check is written

The most frequently used type of accounts receivable bookkeeping system in a dental practice is?

the computerized system or a manual pegboard system

When making financial arrangements, it is necessary to take into consideration?

the dentist's stated payment plans, along with the sound business principles used in the management of the practice. It is also necessary to consider the patient's ability to pay

The final decision regarding turning accounts over for collection must be made by?

the dentist, and an account is never turned over without the dentist's specific approval.

After the dentist has completed the case presentation to the patient, the business assistant may be asked to handle?

the discussion of fees involved

The headings on this form(payroll) show?

the employee's full name (spelled correctly), social security number, address, and the number of exemptions claimed.

The business records of a dental practice are the foundation in which?

the finances for a dental office are managed.

The government requires that each employer keep records of?

the hours worked, the amounts paid, and the amounts deducted for tax purposes. Complete and accurate employee records must be kept at all times, and back records should be stored with other important financial papers. A separate payroll sheet should be maintained for each employee

Accounting is?

the means or process of recording, classifying, and summarizing financial transactions

As each statement is paid, what happens?

the number of the check and the date the payment was made are noted on the statement

The accounting process begins when?

the patient leaves the treatment area.

In some practices, it is office policy to record? (for paying in check)

the payer's driver's license number and one other form of identification. The patient paying by check is provided a receipt for the payment.

The payee is? And what should be included in it?

the person named on the check as the intended recipient of the amount shown; payee's name is written after the words "Pay to the order of." The name of the payee should be written out in full; however, titles such as Mr., Mrs., and Ms. are best omitted. It is preferable to make a check out to "Mary Jones" rather than to "Mrs. John Jones."

The responsible party also known as the guarantor, is?

the person who has agreed to be responsible for payment of the account. This is not always the patient. The patient account record is used to track all account transactions

The bank will add a charge against the account of the person (or company) who wrote the N.S.F. check; however, no charge is usually applied to?

the person who received the check.

Bookkeeping is

the recording of the accounting process

Accounts receivable activities are not difficult; however, in carrying out these activities, the business assistant assumes?

the responsibility of handling other people's money. In this way, he or she is responsible for making every effort to keep this money safe, to record it accurately, and to respect the confidence in which all of this information must be held.

Whether you are using a manual or a computerized system, the same what are used?

the same information requirements and organizational format is necessary

Variable overhead expenses are?

those that change according to the types of services procured or obtained, for example, dental and stationery supplies, independent contractor fees, dental laboratory fees, and equipment repair fees.

Once the sum of all the vouchers plus the cash on hand is balanced a check is written to?

to refill the fund. If the fund is balanced, the check (which will return the fund to its original amount) should be written for a sum equal to that of the vouchers for that month.

What types of dental plans are there?

traditional dental insurance dental plan, managed care dental insurance plan, and government programs.

A charge slip, also referred to as a routing slip or superbill, is used to?

transmit financial information from the treatment area to the business office

These financial arrangements should be made before?

treatment is initiated, except in such instances as emergency treatment

What is a statement of earnings?

written record of the amount "credited" to the employee's account. Should an error be found here, it must be reported and corrected through the Social Security Administration.

Suggestions for Composing Collection Letters

• Your account has always been paid promptly in the past, so this must be an oversight. Please accept this note as a friendly reminder of your account due in the amount of $______. • Since your care in this office in March, we have had no word from you in regard to how you are feeling or your account payment. If it is impossible for you to pay the full amount of $______ at this time, please call this office before June 15 so that satisfactory arrangements can be worked out. • Medical bills are payable at the time of service unless special credit arrangements are made. Please send your check in full or call this office before June 30, 20__. • If you have some question about your statement, we will be happy to discuss it with you. If not, may we have a payment before the end of this month? • Unless some definite arrangement is made to reduce your balance of $_____, we can no longer carry your account on our books. Delinquent accounts are turned over to our collection agency on the 25th of the month. • When a payment plan has been established, it can be reinforced by recognizing the first remittance with a letter of acknowledgment: • Thank you for the recent payment of $_____ on your account. We are glad to cooperate with you in this arrangement for clearing your account. We will look for your next check at about the same time next month, and your final payment the following month. • When a payment schedule has been arranged by a telephone call, it can be confirmed by letter: As agreed upon in our telephone conversation today, we will expect you to mail a payment of $50 on February 10; $50 on March 10; and the balance on April 10. If some emergency should prevent your making one of these payments on time, please notify us immediately by telephone.

collection follow-through timetable that can be used to collect money?

•30 days: The regular statement, which is sent at the end of the month, within 30 days, or on completion of treatment with financial arrangements printed on the statement. •60 days: A second statement, with a kindly printed collection message or a telephone call. •75 days: Another telephone call and an amiable collection letter mailed. •90 days: A third statement with a stronger note or a collection letter; often, this letter states that unless payment is made within 10 days, the account will be turned over to a collection agency for action. •105 days: Another telephone call; in this call, the message should be, "Unless the account is paid by the specified date, it will be necessary to turn the account over to a collection agency for action." •120 days: If no payment has been made and promises have not been kept, the account is turned over to a collection agency for action.

The business assistant has the responsibility of maintaining complete, accurate, and up-to-date financial records in the following areas:

•Billing and collection procedures •Financial planning •Declaring money earned to federal and state agencies

The check register is a record of all checks issued and deposits made to the account. The check register entry should be made before the check is written. It should include the following;

•Date (a check should be dated for the day it is written and should never be predated or postdated) •Number of the check •Name of the payee •Amount and purpose of the check

At minimum, be sure to have the following in front of you before you make the collection call:

•Exact amount owed •Payment due date •Notes from previous conversations

Whether a manual or computerized system is used to process check writing, the utmost care should be taken in stating the amount of the check in both figures and words and in making certain that the amount stated agrees in the following three places;

•On the check register •In numbers on the right side of the check next to the dollar sign •Written out in words on the line before the word "dollars"; the number of cents usually is written as a fraction, so no mistake can be made about the placement of the decimal point.

Under the federal Fair Debt Collection Practice Act, it is illegal for anyone to carry out the following:

•Telephone the debtor at inconvenient hours (before 8:00 PM is considered an acceptable time). •Threaten violence or use obscene language. •Use false pretenses to get information. •Contact the debtor's employer, except to verify employment or residence.

After the deposit has been made, the date and amount of the deposit should be entered in the practice check register as follows:

•The deposit slip must be imprinted with the practice name, address, and account number. •The information on the deposit slip must be legible. •All cash (bills and coins) is listed together under "Currency." •Checks are listed separately, usually by the last name and first initial of the person writing the check. Computer systems do this automatically when checks are posted. •In many practices, the deposit slip is completed in duplicate so a copy can be retained with the practice records.

Information on the registration form includes the following:

•The name, address, telephone number(s), and place of employment of the person responsible for the account •Information specifying the patient's coverage under a dental insurance plan •Identification information for all individuals included on the account

When a divided payment plan is set up, the primary information to be determined is as follows:

•Total fee for services to be rendered •Balance after deduction of the down payment; the resulting amount is to be financed •Annual percentage rate of the finance charge (if there is one) •Number of payments to be made •Amount of each payment •Date on which each payment is due