- Email: [email protected]
Simplified bookkeeping with internal controls
Simplified bookkeeping with internal controls JERRY F. JO N E S, D.D.S., AND GEORGE A. PETERSON, C.P.A., LA JOLLA, CALIF.
The predicted population explosion and the fact that people are seeking and de manding more complete dental service make it imperative that dentists utilize procedures which are simple, yet effective and accurate, in every phase of practice. Studies by Anderson1 and others indi cate how inefficiently some dentists prac tice in their operating rooms; this also holds true of their business methods. Lack of organization in a practice is an expen sive luxury which invites disaster both physically and financially. Most of the recent graduates will have the latest equipment in their operatories, which is all very well, but they should also be sure they use the latest equipment for their administrative or office pro cedures. It is well known that in five years the average dentist will have as busy a prac tice as he desires;2 therefore, he must anticipate and plan for such growth from the outset. Because he may have invested a great deal on equipment for his opera tories is no reason to skimp on his busi ness office. In the past few years courses in prac tice administration have been introduced into dental schools. They usually consist of superficial courses in elementary ac
counting in which one method or pro cedure is used that entails transferring information from the patient’s treatment card to a bound journal of daily receipts from which an entry may be made to an • accounts receivable card. This informa tion is again recorded on the patient’s statement for billing at the end of the month, and often on a receipt. Proper evaluation of all office pro cedures is essential. A dentist starting out in practice should take the time to an alyze his total operation. Anderson3 sug gests that every office should have an “operating manual” covering all phases of the practice. Such a manual is helpful in organizing one’s work and also in training auxiliary personnel. Someone once said, “Medicine is a wonderful profession, but a hell of a busi ness.” This could apply to dentistry; however, because the business aspects of a practice are an integral part of effective treatment, they must be considered in telligently. The bookkeeping procedures should be simplified as much as possible so the dentist will have more time to devote to other activities. It is wise to use the services of a certi fied public accountant.4 He should be able to save the practitioner much ex
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 85/71
pense in time and money by helping him set up a bookkeeping system which is accurate yet simple to operate. One of the newer work-saving books (the accountant calls them “journals” ) involves the use of a “ peg” or “collating board” which is simply a device to collate forms so as to produce several records simultaneously. Before discussing this in more detail, the other business equipment and records which the dentist setting up practice needs will be tabulated.
EQUIPM ENT AND SUPPLIES The following equipment and supplies will be required: 1. Typewriter 2. Adding machine 3. Stationery, including recall cards and notices 4. Prestamped window envelopes (ob tainable from the post office) and selfaddressed return envelopes 5. Statements or electric copying ma chine (optional) 6. Envelope 9/2 by I I /2 inches in which the combined accounts receivable and treatment record card, roentgeno grams, and other patient data can be kept 7. Upright desk file to hold cards of patients under treatment and those with unpaid accounts 8. Large four-drawer office file The following records must be kept: 1. Appointment book— combined with daily cash journal (in which fees billed, collections and adjustments will be re corded) 2. Combined accounts receivable and treatment record card 3. Check record— combines checks and disbursements 4. File of paid invoices and disburse ment data 5. Patient information forms 6. Receipt book
If the “peg board” system is used, the information is written once instead of four times which saves time and elimi nates the possibility of errors in transcrib ing. Carbon paper is used to record the transaction simultaneously on the pa tient’s statement, accounts receivable card, and daily cash journal. By using this same “peg” or “ collating board sys tem,” the check record and check are produced simultaneously. This saves an additional transcription. A description of how this works in practice follows. -
FORMS AND RECORDS 1. Combined appointment book and daily cash journal. Each page in the book is identical. On one side is a daily ap pointment schedule divided into 15 min ute periods from 8 a . m . to 9 p . m . On the reverse side of this same sheet or page is the record of charges, adjustments (that is, professional discounts) and receipts. 2. Combined accounts receivable card and treatment record. On one side is listed the service rendered and the charges plus any credits and the balance. On the other side there is space for the medical history, charting, diagnosis and treatment planning, financial arrangements and ap pointment schedule. 3. Combined checks and check record with disbursements. The checks are printed with a thin strip of carbon un derneath the payee’s line. Whomever the check is made payable to will be recorded on the check record simultaneously. The disbursement record is part of the same book. 4. Invoice filing. Paid invoices are easily filed alphabetically by vendor and a new file is started each year; however, invoices for equipment should be filed in a separate folder. 5. Patient information forms. One form is for minors and the other for adults. The adult form lists such pertinent information as name, address, occupa-
86/72 • THE J O U R N A L O F THE A M E R IC A N DENTAL A S S O C IA T IO N
Collectors I n o .
[_
s | n o . 2 ¡ n o . ill j kN. 1 F E B . 1 MAR. 1A p r i l ] MAY | J U N E I J U L Y I A U G . | S E P T . ¡ O C T . j NOV. | D EC .11 F O L L O W U P ll O L D E S T I T E M
NO BW XD
□
AGE
N A M E S __________________________________________________________
S PO U SE
CH ILD REN
A D D R E S S _______________________________________ HOW E M P L O Y E D B Y ___________________________________ L O N G B U S IN E S S ADDRESS F A M IL Y P H Y S IC IA N
P atien t in fo rm a tio n form
tion, and so on. On the reverse side is a ord card and the name and address on the brief medical history questionnaire. statement. The patient is then seated. 6. Receipt book or forms. There are The medical history is checked by the numbered receipts which go with this doctor and transposed to the space pro “write-it-once-system.” They explain the vided. A final charting can be deferred fee and balance, if any, and also have a until full mouth roentgenograms and di space for the next appointment. Their use agnostic models are secured for a com is optional. It is important, however, to plete diagnosis and treatment plan. The have a receipt book with a carbon so as existing conditions and treatment recom to have a duplicate record of all cash mended are then listed. The fees for serv payments. ice, appointment scheduling and financial The new patient arriving at the office arrangements can and should be recorded fills out the information form. The secre on this side of the record. tary or receptionist types the information The service rendered and fee are re on the accounts receivable-treatment rec corded by the chair assistant, and the
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 87/73
Yes
No
J. General Health? Good
□
□
2. Serious illness or surgery in lost two years?
□
□
3. A ny obnormal bleeding? 4. Nervous disorders, fainting or dizziness?
□
□
□
□
5. Allergies?
□
□
6. History of any Heart Trouble, Diabetes Asthma, T.B., Kidney or Liver Involvement?
□
□
7. Unfavorable reaction from previous dental treatment?
□
□
P A T IE N T S N A M E ______
LABIAL
A
8. When was lost dental visit?
B
C
D
E
F
H
9
10
K
L
M
9. Ploce of birth? Age
10. Date of birth? 11. H e ig h t?
Weight
12. Reviewed with. Relationship
1
2
3
4
5.
6
7
11
12
13
14
15
16
Habit Occlusion
-2 ---- 3— 4 -
Ortho-treat Refer to Special B W X Diag
Yes □
No □
F M X Diag.
□
□
E S T IM A T E
• D IA G N O S IS
FEE
FEE
S Models Type of appliance Shade M old Type [ The patient The parent of the patient [ The guardian of the patient hereby authorize Doctor_ to perform the dental services initialed ot right, to ad minister such anesthetics a s in his judgment are necessary, and to perform any added procedures which he may deem necessary to the welfare of the patient during the autho rized dental services. I accept financial responsibility and agree to pay for such services in full. I understand that the fee of $_______________, is an estimate and does not include possible added procedures.
L E G A L S IG N A T U R E '
F IN A N C IA L A R R A N G EM E N T S: Est. Totol $____ Initial or Advance Payment $____________ D ate_ B ank Plan____________________________________ Amount to be paid each visit_ LEGA.L. S IG N A T U R E
A P P O IN T M E N T S C H E D U L E TY PE OF SE R V IC E
R e v e rse side, p a tie n t in fo rm a tio n fo rm
card is returned to the secretary before the patient returns to her desk. If the patient decides to pay cash or prefers to be billed for the service, it is recorded immediately on the face of the card show
ing charges and credits. This is done using a double piece of carbon paper which is fixed to the appointment-journal book. The accounts receivable card is placed under one carbon and slipped under the
88/74 • T H E J O U R N A L O F T H E A M E R IC A N DEN T A L A S S O C IA T IO N
CH ARG ES OR PAYM EN TS MADE A FTE R L A S T D ATE 8HOW N W IL L APPEAR ON YO UR N EX T S TA TE M E N T
DE TA C H A N D RETUR N W ITH YOUR R EM ITTAN CE.
C
H
A
R
G
E
C R E D I T
S
B A L A N C E FO R W A R D
E X P L A N A T IO N OF CHARG ES: B— O P E R A T IV E DEN T IST R Y 3. Precision Attachm ents O—E X A M IN A T IO N S 1. Gold Inlays 4. Splinting and Reconstruction 1. X -R a y s and Diagnosis 2. Gold Foil 5. Repairs, Relines and Adjustments 2. Study M odels 3. Silver Am algam 6. Orthodontic Appliances A — PE R IO D O N T IA 4. Silicates, Plastics, etc. D— O R A L SU RG ERY 1. Prophylaxis C— PROSTH ETICS M ISC .: E— Root Canal Treatments 2. Scaling and Gum Treat. 1. Crown and Bridge F— Topical Flouride Treatments 3. Occlusal (bite) Correction 2. Full and/or Partial Dentures G— Broken Appointments
J . F. JO N E S - D .D .S. • 7761
H erschel Av e .
La J o l l a , c a l if .
•
““ please pay la st am o un t ™ > 8 colum n
P h o n e g l e n c o u r t 4 -S O B B
I
DATE
O
| j
A
T H I S IS Y O U R
I B | C C H A R G E
R E C E IP T
S
D
coot
I
MISC. C R E D I T
S
J . F . JO N E S , D. D. S .
P R EV IO U S BALANCE
N AM E
P L E A SE RETAIN FO R INCOM E TAX P U R P O S E S
FOR T H E S E A M O U N T S ------------------------- i --------------------^
EXPLANATION o f C H A R G E S: _ X -R a y s & Diagnosis C -l. □ ______ — Study Models — Prophylaxis — Scaling & Cum Treat. — Occlusal (bite) Correction
BALANCE
---- Crown and firidge ---- Full and/or Partial Dentures ___ Precision Attachments ---- Splinting and Reconstruction ---- Repairs. Relines and Adjustments ___ Orthodontic Appliances -— Oral Surgery ___ Root Canal Treatments ___ Topical Fluoride Treatments ___ Broken Appointments
N ?
LA JO L L A , C A L IFO R N IA
Form s fo r p atien t
655
A P P O IN T M E N T
h to change this appointment. •
TELEPH O N E: GLENCOURT 4 5 0 5 5
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 89/75
Totals T h is Pago
I Totals Pro viau* Page I Totals Month-To-Dato D E S C R I P TI O N
CASH C O N T R O L Cash on Hand Totcl C ash Received Today Total L e s s Amount Paid Out for Petty Cash L e s s -C a s h Deposited in Bank Total Cash on Hand
A C C O U N T S R E C E IV A B L E C O N T R O L A ccounts Receivable O utstanding Previous Day . Add Charges T h is Page Total L e s s Amount Received on Account L e s s C a sh Received and Adjustm ents allowed Total Acco unts Recc/vab/e Outstanding
Form s fo r d e n tist's file
daily record of charges and receipts. The statement is placed over a piece of carbon and on top of the daily record. The re ceipt can then be placed over the state ment. It has a carbonized strip under neath it. Filling out the receipt gives the charges, credits and balance. This trans action is thus recorded in four places while writing it only once. These treatment cards with the state ment are filed in a special upright desk file. The file is divided into two sections. One section for completed but unpaid accounts, and the other for patients under treatment. This file is compressed and tightly closed at night so in case of fire there is little chance of complete destruc tion of the accounts receivable record. At the end of the month the state ments are removed from the file and sent out in a prestamped window envelope. A self-addressed return envelope is en closed. Because it is important lor the dentist just opening his office to familiarize him self with business procedures and to safe
guard his cash and receivables, the follow ing rules or procedures are suggested. Once a procedure is adopted, the dentist will be able to modify it according to his individual practice. Later, after his prac tice is better established, some of these duties may be delegated to a competent receptionist, but from the beginning the doctor should have a thorough under standing of these procedures. 1. The mail should always be opened by the doctor. 2. Gash, including checks as well as currency, should be counted, preferably by recording directly on a bank deposit slip in duplicate. The checks should all be stamped for deposit only. The slip should include the patient’s last name as well as the check’s bank numbers. (In case of theft they are worthless, and the doctor will have a record of who has re mitted. ) 3. The doctor or secretary should bal ance the journal daily, either at the end of the day or first thing the following morning. The total cash should agree
70/76 • THE J O U R N A L O F THE A M E R IC A N D EN T A L A S S O C IA T IO N
with the cash received according to the journal. This and the deposit slip should be initialed by the doctor. 4. The cash should be deposited in full daily. This helps the new dentist to estab lish credit and maintain as high a bank balance as possible. Under no circum stances should any employee or the doc tor withdraw cash and cover it with a personal check. 5. A running record of the total re ceivables should be maintained daily; this is called a controlling account. 6. At the end of the month all ac counts over one month old should be totaled and added to the current receiv ables. The grand total should agree with the controlling account. 7. The dentist should prepare or ini tial his secretary’s list of the delinquent receivables and controlling account. 8. Employees handling cash should be bonded. 9. When the doctor signs checks for cash disbursements, the vendor’s invoice should also be initialed and show the date of payment along with the check number. 10. When the bank statement arrives, the doctor should open it and examine each check including his signature. 11. After the end of each month, the journal, the check record, the bank state ment, and any other pertinent financial data should be turned over to the certified public accountant so that he may post the journals to the general ledger and reconcile the bank statement. It is desir able that he also maintain an equipment record for depreciation purposes, showing the cost and date purchased of all equip ment other than minor expendable items. 12. At least every three months, the certified public accountant should pre pare an income statement. This statement should include not only the operations of the three months but also show the re sults for the year to date. O f course, the certified public accountant should pre pare the income tax returns.
CONCLUSIONS If the procedures outlined herein are ini tiated from the start as a standard rou tine, then any new employee will know what is expected of her. It is also wise, perhaps, that the chair assistant be famil iar with the basic bookkeeping system. This is helpful in case the assistant is absent because of illness or vacation. It also provides additional security. Most people are honest and trustworthy, es pecially if not given the opportunity to be otherwise. However, rules or regula tions are only a challenge to some people’s ingenuity to try and outsmart 'the system and thus violate a confidence. It is a doc tor’s obligation, therefore, to keep accu rate records and firm control with close supervision to remove temptation from an otherwise honest person. We empha size prevention in dentistry; we should also incorporate it in our office manage ment.
SUMMARY Modern, concise administrative and book keeping procedures are essential if one is to establish a sound practice. They con note sound organization and will be re spected by one’s patients. Proper han dling of this phase of one’s practice sets a businesslike, efficient tenor for your office. It will reflect the thoroughness of your treatment planning and make treat ment, service and financial arrangements more readily understood by your patients. Simplified bookkeeping with built-in con trols will allow less chance for errors in accounting and less opportunity for em bezzlement. 7761 Herschel Avenue
1. Anderson, J. A. J.A.D.A. 60:344 March 2. Plants, J. F. How tice. Fort. Rev. 3. Anderson, nar, October 1959. 4. Stinaff, R. 58:90 Feb. 1959.
Dental office design and layout. I960. to manage a busy dental prac Chicago D. Soc. 35:7 Feb. I, 1958. J. A. Lecture, San Diego denta K. General office administration. J.A.D.A.
The predicted population explosion and the fact that people are seeking and de manding more complete dental service make it imperative that dentists utilize procedures which are simple, yet effective and accurate, in every phase of practice. Studies by Anderson1 and others indi cate how inefficiently some dentists prac tice in their operating rooms; this also holds true of their business methods. Lack of organization in a practice is an expen sive luxury which invites disaster both physically and financially. Most of the recent graduates will have the latest equipment in their operatories, which is all very well, but they should also be sure they use the latest equipment for their administrative or office pro cedures. It is well known that in five years the average dentist will have as busy a prac tice as he desires;2 therefore, he must anticipate and plan for such growth from the outset. Because he may have invested a great deal on equipment for his opera tories is no reason to skimp on his busi ness office. In the past few years courses in prac tice administration have been introduced into dental schools. They usually consist of superficial courses in elementary ac
counting in which one method or pro cedure is used that entails transferring information from the patient’s treatment card to a bound journal of daily receipts from which an entry may be made to an • accounts receivable card. This informa tion is again recorded on the patient’s statement for billing at the end of the month, and often on a receipt. Proper evaluation of all office pro cedures is essential. A dentist starting out in practice should take the time to an alyze his total operation. Anderson3 sug gests that every office should have an “operating manual” covering all phases of the practice. Such a manual is helpful in organizing one’s work and also in training auxiliary personnel. Someone once said, “Medicine is a wonderful profession, but a hell of a busi ness.” This could apply to dentistry; however, because the business aspects of a practice are an integral part of effective treatment, they must be considered in telligently. The bookkeeping procedures should be simplified as much as possible so the dentist will have more time to devote to other activities. It is wise to use the services of a certi fied public accountant.4 He should be able to save the practitioner much ex
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 85/71
pense in time and money by helping him set up a bookkeeping system which is accurate yet simple to operate. One of the newer work-saving books (the accountant calls them “journals” ) involves the use of a “ peg” or “collating board” which is simply a device to collate forms so as to produce several records simultaneously. Before discussing this in more detail, the other business equipment and records which the dentist setting up practice needs will be tabulated.
EQUIPM ENT AND SUPPLIES The following equipment and supplies will be required: 1. Typewriter 2. Adding machine 3. Stationery, including recall cards and notices 4. Prestamped window envelopes (ob tainable from the post office) and selfaddressed return envelopes 5. Statements or electric copying ma chine (optional) 6. Envelope 9/2 by I I /2 inches in which the combined accounts receivable and treatment record card, roentgeno grams, and other patient data can be kept 7. Upright desk file to hold cards of patients under treatment and those with unpaid accounts 8. Large four-drawer office file The following records must be kept: 1. Appointment book— combined with daily cash journal (in which fees billed, collections and adjustments will be re corded) 2. Combined accounts receivable and treatment record card 3. Check record— combines checks and disbursements 4. File of paid invoices and disburse ment data 5. Patient information forms 6. Receipt book
If the “peg board” system is used, the information is written once instead of four times which saves time and elimi nates the possibility of errors in transcrib ing. Carbon paper is used to record the transaction simultaneously on the pa tient’s statement, accounts receivable card, and daily cash journal. By using this same “peg” or “ collating board sys tem,” the check record and check are produced simultaneously. This saves an additional transcription. A description of how this works in practice follows. -
FORMS AND RECORDS 1. Combined appointment book and daily cash journal. Each page in the book is identical. On one side is a daily ap pointment schedule divided into 15 min ute periods from 8 a . m . to 9 p . m . On the reverse side of this same sheet or page is the record of charges, adjustments (that is, professional discounts) and receipts. 2. Combined accounts receivable card and treatment record. On one side is listed the service rendered and the charges plus any credits and the balance. On the other side there is space for the medical history, charting, diagnosis and treatment planning, financial arrangements and ap pointment schedule. 3. Combined checks and check record with disbursements. The checks are printed with a thin strip of carbon un derneath the payee’s line. Whomever the check is made payable to will be recorded on the check record simultaneously. The disbursement record is part of the same book. 4. Invoice filing. Paid invoices are easily filed alphabetically by vendor and a new file is started each year; however, invoices for equipment should be filed in a separate folder. 5. Patient information forms. One form is for minors and the other for adults. The adult form lists such pertinent information as name, address, occupa-
86/72 • THE J O U R N A L O F THE A M E R IC A N DENTAL A S S O C IA T IO N
Collectors I n o .
[_
s | n o . 2 ¡ n o . ill j kN. 1 F E B . 1 MAR. 1A p r i l ] MAY | J U N E I J U L Y I A U G . | S E P T . ¡ O C T . j NOV. | D EC .11 F O L L O W U P ll O L D E S T I T E M
NO BW XD
□
AGE
N A M E S __________________________________________________________
S PO U SE
CH ILD REN
A D D R E S S _______________________________________ HOW E M P L O Y E D B Y ___________________________________ L O N G B U S IN E S S ADDRESS F A M IL Y P H Y S IC IA N
P atien t in fo rm a tio n form
tion, and so on. On the reverse side is a ord card and the name and address on the brief medical history questionnaire. statement. The patient is then seated. 6. Receipt book or forms. There are The medical history is checked by the numbered receipts which go with this doctor and transposed to the space pro “write-it-once-system.” They explain the vided. A final charting can be deferred fee and balance, if any, and also have a until full mouth roentgenograms and di space for the next appointment. Their use agnostic models are secured for a com is optional. It is important, however, to plete diagnosis and treatment plan. The have a receipt book with a carbon so as existing conditions and treatment recom to have a duplicate record of all cash mended are then listed. The fees for serv payments. ice, appointment scheduling and financial The new patient arriving at the office arrangements can and should be recorded fills out the information form. The secre on this side of the record. tary or receptionist types the information The service rendered and fee are re on the accounts receivable-treatment rec corded by the chair assistant, and the
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 87/73
Yes
No
J. General Health? Good
□
□
2. Serious illness or surgery in lost two years?
□
□
3. A ny obnormal bleeding? 4. Nervous disorders, fainting or dizziness?
□
□
□
□
5. Allergies?
□
□
6. History of any Heart Trouble, Diabetes Asthma, T.B., Kidney or Liver Involvement?
□
□
7. Unfavorable reaction from previous dental treatment?
□
□
P A T IE N T S N A M E ______
LABIAL
A
8. When was lost dental visit?
B
C
D
E
F
H
9
10
K
L
M
9. Ploce of birth? Age
10. Date of birth? 11. H e ig h t?
Weight
12. Reviewed with. Relationship
1
2
3
4
5.
6
7
11
12
13
14
15
16
Habit Occlusion
-2 ---- 3— 4 -
Ortho-treat Refer to Special B W X Diag
Yes □
No □
F M X Diag.
□
□
E S T IM A T E
• D IA G N O S IS
FEE
FEE
S Models Type of appliance Shade M old Type [ The patient The parent of the patient [ The guardian of the patient hereby authorize Doctor_ to perform the dental services initialed ot right, to ad minister such anesthetics a s in his judgment are necessary, and to perform any added procedures which he may deem necessary to the welfare of the patient during the autho rized dental services. I accept financial responsibility and agree to pay for such services in full. I understand that the fee of $_______________, is an estimate and does not include possible added procedures.
L E G A L S IG N A T U R E '
F IN A N C IA L A R R A N G EM E N T S: Est. Totol $____ Initial or Advance Payment $____________ D ate_ B ank Plan____________________________________ Amount to be paid each visit_ LEGA.L. S IG N A T U R E
A P P O IN T M E N T S C H E D U L E TY PE OF SE R V IC E
R e v e rse side, p a tie n t in fo rm a tio n fo rm
card is returned to the secretary before the patient returns to her desk. If the patient decides to pay cash or prefers to be billed for the service, it is recorded immediately on the face of the card show
ing charges and credits. This is done using a double piece of carbon paper which is fixed to the appointment-journal book. The accounts receivable card is placed under one carbon and slipped under the
88/74 • T H E J O U R N A L O F T H E A M E R IC A N DEN T A L A S S O C IA T IO N
CH ARG ES OR PAYM EN TS MADE A FTE R L A S T D ATE 8HOW N W IL L APPEAR ON YO UR N EX T S TA TE M E N T
DE TA C H A N D RETUR N W ITH YOUR R EM ITTAN CE.
C
H
A
R
G
E
C R E D I T
S
B A L A N C E FO R W A R D
E X P L A N A T IO N OF CHARG ES: B— O P E R A T IV E DEN T IST R Y 3. Precision Attachm ents O—E X A M IN A T IO N S 1. Gold Inlays 4. Splinting and Reconstruction 1. X -R a y s and Diagnosis 2. Gold Foil 5. Repairs, Relines and Adjustments 2. Study M odels 3. Silver Am algam 6. Orthodontic Appliances A — PE R IO D O N T IA 4. Silicates, Plastics, etc. D— O R A L SU RG ERY 1. Prophylaxis C— PROSTH ETICS M ISC .: E— Root Canal Treatments 2. Scaling and Gum Treat. 1. Crown and Bridge F— Topical Flouride Treatments 3. Occlusal (bite) Correction 2. Full and/or Partial Dentures G— Broken Appointments
J . F. JO N E S - D .D .S. • 7761
H erschel Av e .
La J o l l a , c a l if .
•
““ please pay la st am o un t ™ > 8 colum n
P h o n e g l e n c o u r t 4 -S O B B
I
DATE
O
| j
A
T H I S IS Y O U R
I B | C C H A R G E
R E C E IP T
S
D
coot
I
MISC. C R E D I T
S
J . F . JO N E S , D. D. S .
P R EV IO U S BALANCE
N AM E
P L E A SE RETAIN FO R INCOM E TAX P U R P O S E S
FOR T H E S E A M O U N T S ------------------------- i --------------------^
EXPLANATION o f C H A R G E S: _ X -R a y s & Diagnosis C -l. □ ______ — Study Models — Prophylaxis — Scaling & Cum Treat. — Occlusal (bite) Correction
BALANCE
---- Crown and firidge ---- Full and/or Partial Dentures ___ Precision Attachments ---- Splinting and Reconstruction ---- Repairs. Relines and Adjustments ___ Orthodontic Appliances -— Oral Surgery ___ Root Canal Treatments ___ Topical Fluoride Treatments ___ Broken Appointments
N ?
LA JO L L A , C A L IFO R N IA
Form s fo r p atien t
655
A P P O IN T M E N T
h to change this appointment. •
TELEPH O N E: GLENCOURT 4 5 0 5 5
J O N E S — PETERSON . . . V O L U M E 64, J A N U A R Y 1962 • 89/75
Totals T h is Pago
I Totals Pro viau* Page I Totals Month-To-Dato D E S C R I P TI O N
CASH C O N T R O L Cash on Hand Totcl C ash Received Today Total L e s s Amount Paid Out for Petty Cash L e s s -C a s h Deposited in Bank Total Cash on Hand
A C C O U N T S R E C E IV A B L E C O N T R O L A ccounts Receivable O utstanding Previous Day . Add Charges T h is Page Total L e s s Amount Received on Account L e s s C a sh Received and Adjustm ents allowed Total Acco unts Recc/vab/e Outstanding
Form s fo r d e n tist's file
daily record of charges and receipts. The statement is placed over a piece of carbon and on top of the daily record. The re ceipt can then be placed over the state ment. It has a carbonized strip under neath it. Filling out the receipt gives the charges, credits and balance. This trans action is thus recorded in four places while writing it only once. These treatment cards with the state ment are filed in a special upright desk file. The file is divided into two sections. One section for completed but unpaid accounts, and the other for patients under treatment. This file is compressed and tightly closed at night so in case of fire there is little chance of complete destruc tion of the accounts receivable record. At the end of the month the state ments are removed from the file and sent out in a prestamped window envelope. A self-addressed return envelope is en closed. Because it is important lor the dentist just opening his office to familiarize him self with business procedures and to safe
guard his cash and receivables, the follow ing rules or procedures are suggested. Once a procedure is adopted, the dentist will be able to modify it according to his individual practice. Later, after his prac tice is better established, some of these duties may be delegated to a competent receptionist, but from the beginning the doctor should have a thorough under standing of these procedures. 1. The mail should always be opened by the doctor. 2. Gash, including checks as well as currency, should be counted, preferably by recording directly on a bank deposit slip in duplicate. The checks should all be stamped for deposit only. The slip should include the patient’s last name as well as the check’s bank numbers. (In case of theft they are worthless, and the doctor will have a record of who has re mitted. ) 3. The doctor or secretary should bal ance the journal daily, either at the end of the day or first thing the following morning. The total cash should agree
70/76 • THE J O U R N A L O F THE A M E R IC A N D EN T A L A S S O C IA T IO N
with the cash received according to the journal. This and the deposit slip should be initialed by the doctor. 4. The cash should be deposited in full daily. This helps the new dentist to estab lish credit and maintain as high a bank balance as possible. Under no circum stances should any employee or the doc tor withdraw cash and cover it with a personal check. 5. A running record of the total re ceivables should be maintained daily; this is called a controlling account. 6. At the end of the month all ac counts over one month old should be totaled and added to the current receiv ables. The grand total should agree with the controlling account. 7. The dentist should prepare or ini tial his secretary’s list of the delinquent receivables and controlling account. 8. Employees handling cash should be bonded. 9. When the doctor signs checks for cash disbursements, the vendor’s invoice should also be initialed and show the date of payment along with the check number. 10. When the bank statement arrives, the doctor should open it and examine each check including his signature. 11. After the end of each month, the journal, the check record, the bank state ment, and any other pertinent financial data should be turned over to the certified public accountant so that he may post the journals to the general ledger and reconcile the bank statement. It is desir able that he also maintain an equipment record for depreciation purposes, showing the cost and date purchased of all equip ment other than minor expendable items. 12. At least every three months, the certified public accountant should pre pare an income statement. This statement should include not only the operations of the three months but also show the re sults for the year to date. O f course, the certified public accountant should pre pare the income tax returns.
CONCLUSIONS If the procedures outlined herein are ini tiated from the start as a standard rou tine, then any new employee will know what is expected of her. It is also wise, perhaps, that the chair assistant be famil iar with the basic bookkeeping system. This is helpful in case the assistant is absent because of illness or vacation. It also provides additional security. Most people are honest and trustworthy, es pecially if not given the opportunity to be otherwise. However, rules or regula tions are only a challenge to some people’s ingenuity to try and outsmart 'the system and thus violate a confidence. It is a doc tor’s obligation, therefore, to keep accu rate records and firm control with close supervision to remove temptation from an otherwise honest person. We empha size prevention in dentistry; we should also incorporate it in our office manage ment.
SUMMARY Modern, concise administrative and book keeping procedures are essential if one is to establish a sound practice. They con note sound organization and will be re spected by one’s patients. Proper han dling of this phase of one’s practice sets a businesslike, efficient tenor for your office. It will reflect the thoroughness of your treatment planning and make treat ment, service and financial arrangements more readily understood by your patients. Simplified bookkeeping with built-in con trols will allow less chance for errors in accounting and less opportunity for em bezzlement. 7761 Herschel Avenue
1. Anderson, J. A. J.A.D.A. 60:344 March 2. Plants, J. F. How tice. Fort. Rev. 3. Anderson, nar, October 1959. 4. Stinaff, R. 58:90 Feb. 1959.
Dental office design and layout. I960. to manage a busy dental prac Chicago D. Soc. 35:7 Feb. I, 1958. J. A. Lecture, San Diego denta K. General office administration. J.A.D.A.