Collections, Accounts Payable, Ordering, and Inventory.
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Collections, Accounts Payable, Ordering, and Inventory
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Transcript of Collections, Accounts Payable, Ordering, and Inventory.
Collections, Accounts Payable,Ordering, and Inventory
Collection Management
Each office/Dr. has own policy.Collect every penny?Send letter? When?Turn over to collection agency?Write off at tax time?
(business loss)Pt. should feel you are working with them.
Upset/angry patients don’t like to pay.
Account Status
Current: No Acct. balance or payment last 30 days.
Past Due: Acct. balance, No payment last 30-60 days.
Delinquent: Acct. balance, No payment 60-90 days.
Collections: Acct. tuned over to outside agency to collect balance.
Collection Management
Fair Debt Collection Practice Act Rules for collection of money/past due accts.
Cannot call at inconvenient hours No 3:00 am calls
Cannot call at work (unless authorized)
Cannot lie I’ll take your car if you don’t pay.
Cannot Threaten I’m going to send people to beat you up if you don’t pay.
Collection Management
No payment?Call pt. (most effective way to contact)Set date to receive payment.Don’t receive $$$…Call pt. backMake new payment arrangements. If unable to contact….
send a letter.
Collection Management
Collection letters:Can’t reach by phone…..Certified mail….
Requires signature of addresseeConfirms receiptMay include
SASE (self-addressed stamped envelope) Encourages payment of balance….
NOW!! If returned…”no forwarding address” Turn over to collections…
Collection agency!
Highly delinquent accounts90+ days past dueMust follow:
Fair Debt Collection Practice ActPaid….? (Motivation)
% of amount collected. (Most Common)50% (example)
½ is better than nothing
Collection agency!
Some charge a flat fee: (not as common)
Examples: $20 to collect up to $100.00$50 to collect from $101.00 to $200.00$150 to collect from $201.00 to $300.00
Fees would continue to go up… According to amount being collected.
All info reported to the Credit Bureaus
Special Collection Situation?
Bankruptcy…..Once declared…
Can no longer Call / email Send letters Contact in person
Death…Can’t take $$ with you..
Address letters to the ‘estate of’ Creditors get $$$ before family
Recording Payment
Once $$$ collected:Agency fees are subtractedBalance sent to Dr./office.
Record payment on: ledger card computer software
Stamp checks w/ endorsement stamp Record on deposit slip with cash Deposits should be done daily.
Accounts Payable
$$$ the practice owes to others.Accounts receivable = GROSS INCOME All expenses required
to run the dental = OVERHEAD practice.
Gross Income- Overhead
= Net IncomeNet Income = True profit. (amount kept after paying the bills)
Expenses
Fixed expenses Creditors Mortgage Payroll (salaries)
Gross pay = before taxes Net pay = after taxes Same wage ea. Month Not based on hours
worked. Some utilities
Garbage Cable Towel/gown service.
Variable expenses Lab fees Supplies Payroll (hourly)
Based on # of hrs worked.
Some utilities Electric Water/sewer Phone
Equipment repair
Supplies
Expendable Aka disposable
Cotton rolls Saliva ejectors Pt. bibs Gloves Barriers Masks Anything thrown
away.
Non-expendable Aka durable goods
Cure light Autoclave Ultrasonic Amalgamator X-ray equipment Dental unit/chair Stuff you keep and
reuse
Supplies
Ordering: things to consider. Shelf-life:
How long you can store a product and it’s still “good”.
Rate of use: How fast you use a
product in a specific period of time.
Lead time: Time between
placing and receiving the order.
Reorder point: ensures enough of
the product until order arrives. (margin of safety)
Price…….$$$
Supplies
Price Item price
Cost of a single itemUnit price
Cost of grouped itemsBulk price
Cost of grouped unitsPrice Break
Reduced price for buying in “bulk”
Supplies
Inventory Supply SystemsMonitor supplies on hand vs. needed
Ensures you have supplies when needed.Usually one person (lead assistant)
Can be very challenging Finding low prices Staying in a budget Taking responsibility for errors
Supplies
Tag system (inexpensive)
All products have a tag
When product w/ tag is used,
Tag is placed in a: “to order” file,
Order is placed Order is received Tag is placed back
on new product.
Bar Code system Similar to grocery
store. All products have a
bar code. May be on a “tag”
or, in a book. Bar code is scanned Order is placed Order is received.
Supplies
Receiving Supplies Packing slip
Lists what was packed in the box.
No prices (Invoice)
Check for: Damage Brands Size Types
Credit slip Issued if items are
returned. Back order slip
Issued if a supplier is out of a product or item.
Shipped ASAP
Paying accounts
Always double check Invoice/statementCould be errorCould be a double charge.
Writing the checkBlue or black ink (gel Ink)
Harder to “wash” checksAmount in figure and words.Recorded in the register.Do not pre or post date.
Reconciling
Aka: balancing the check book against the statement from the bank. Update check book Calculate outstanding checks and debits Add deposits made, but not shown to the ending
balance. Subtract the amount of the outstanding checks. This amount should match the balance in the check
book. If not, need to track down the error and re-balance.
N.S.F
Non-sufficient fundsNo money in the account to cover a check
written.Bank may charge a feeOffice may charge a feeAmount is added back into account at the
office.Usually caused by not reconciling.
Petty Cash
Money kept in office:Less than $100Minor unexpected expensesMake change for cash paying customers
Place a receipt or voucher when taking money out.
Conclusion
Paying bills is very important.Accuracy countsAttention to detail is important.When in doubt….
Ask questions
Any questions……..?
