dental office bookkeeping

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Bookkeep ing By: DMD3-AA PRACTI CE MANAGEMENT GROUP 1: I. Income & Expenditu res Charging of fees Credit and collectio n Insuranc e & Licenses Taxes & Permits

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Page 1: Dental Office Bookkeeping

BookkeepingBy:

DMD3-AAPRACTICE

MANAGEMENTGROUP 1:

I. Income & Expenditures

Charging of feesCredit and collection

Insurance & LicensesTaxes & Permits

Page 2: Dental Office Bookkeeping

Bookkeeping• It is simply the recording of

financial transactions. • Transactions include

purchases, sales, receipts and payments by an individual or organization.

Page 3: Dental Office Bookkeeping

• The dental practitioner should be very involved in their practice's accounting to maintain order, prevent theft, and keep costs under control.

Page 4: Dental Office Bookkeeping

• Bookkeeping in the dental office is usually performed by a…

Dental Office Bookkeeper

Page 5: Dental Office Bookkeeping

The Dental Office Bookkeeper

• Handles all dental office finances which includes:Accounts Receivable – the

money owed to the practice, &Accounts Payable – the money

the office owes to others.

Page 6: Dental Office Bookkeeping

• This person may also handle the patient’s dental insurance and make financial arrangements with the patients for payment of the dental service.• The inventory and supply system

may also be handled by this person.

Page 7: Dental Office Bookkeeping

• Above all, this person must be organized, have knowledge of dental treatments, and exhibit good communication and problem-solving skills.

Page 8: Dental Office Bookkeeping

I. Income

&Expendit

ures

Page 9: Dental Office Bookkeeping

Income– A book that contains the profit of

the dental practice.– It involves the charges to

patients for services that are done by the dentist.– This is recognized when it is

received.

Page 10: Dental Office Bookkeeping

–A book that contains the expenses of the dental practice.– It involves the money that

goes out of the office.– This is recorded when it is

paid.

Expenditures

Page 11: Dental Office Bookkeeping

Charging of Fees

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• The price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup.

Fee

Page 13: Dental Office Bookkeeping

ACCORDING TO AN RDH EVILLAGE SURVEY

COMPLETED BY 362 READERS IN MAY 2012

Page 14: Dental Office Bookkeeping

The survey inquired about additional fees for:

• Nitrous oxide/anesthetics (58% charge an additional fee)• Missed appointment charges

(57% charge an additional fee)• Home care products (15% charge

an additional fee)

Page 15: Dental Office Bookkeeping

• Patient education (6% charge an additional fee)• Cleaning of implant-restored teeth

(only 3% charge additional fees)• Caries detection technologies (3%

charge an additional fee)• Filling out insurance forms (less

than 1% charge an additional fee)

Page 16: Dental Office Bookkeeping

Financial Record• Another important facet of

the patient record relates to financial arrangements. • It is prudent to include in the

patient record a note or notes about the financial

Page 17: Dental Office Bookkeeping

arrangements and agreements made with the patient and/or guardian concerning the settlement of accounts.

Page 18: Dental Office Bookkeeping

• a copy of any written agreement with a patient;• the date and amount of all fees

charged;• the date and amount of all

payments made;

The financial record for each patient must

include:

Page 19: Dental Office Bookkeeping

• an itemized listing of all commercial laboratory fees that were incurred in respect to prosthetic,• restorative or orthodontic services;• copies of all dental claim forms for

the preceding two years.

Page 20: Dental Office Bookkeeping

If dental treatment is provided for a patient on a basis other than fee-

for-service, or where the responsibility for payment is with a

person other than the patient or patient’s guardian, you should be

aware of the following recordkeeping requirements. Any

such agreement with a patient must:

Page 21: Dental Office Bookkeeping

• Be in writing;• Be maintained as part of the

patient record;• Identify the person or persons

entitled to dental services under it;• The dental services to which they

are entitled;• State the period of time it will be in

force;

Page 22: Dental Office Bookkeeping

• Specify the obligations of the parties in the event the member is unable to provide covered services, including the obligations to make further payments and the application of payments that were previously made.

Page 23: Dental Office Bookkeeping

• If payments for dental services are made on behalf of a patient by a third party, the financial record must include the identity of the person or agency making

such payment.

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Credit&

Collection

Page 25: Dental Office Bookkeeping

• Patients must be aware not only their dental needs but of the value of the services rendered.• Also, patients must give

informed consent & must understand the office’s policies on matters of credit & collection.

Page 26: Dental Office Bookkeeping

–Comes from the Latin word Credo, which means

"I believe".–An arrangement with a

shop, bank, etc. that allows you to buy something and pay for it later.

Credit

Page 27: Dental Office Bookkeeping

• A document issued to a customer who owes money.• For example: A dental

procedure which is endodontic treatment that he/she should pay in a form of installment.

Credit Note

Page 28: Dental Office Bookkeeping

• The act of obtaining money that is owed to dental office.• All dentists should be acutely

aware of the collection percentage in their dental practice and review it on a monthly basis.

Collection

Page 29: Dental Office Bookkeeping

Insurance&

Licenses

Page 30: Dental Office Bookkeeping

• In many practices, a major source of practice income is reimbursement from dental insurance plans.

Insurance

Page 31: Dental Office Bookkeeping

• This includes name, address, phone numbers and place of employment of the patient & the responsible party (if different) & specific insurance information.

Page 32: Dental Office Bookkeeping

Licenses

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• Includes dentist’s school diploma, certificate of registration, professional identification card, certificates of training/residency, certificate of proficiency issued by specialty council, the Board of

Licenses

Page 34: Dental Office Bookkeeping

Dentistry and such other documents, or papers required by the law shall be displayed in his clinic or reception room.• Plaques, Testimonials, Certificates of

Appreciation obtained as a result of the dentist’s professional competency maybe displayed separately in the dentist’s private office only.

Page 35: Dental Office Bookkeeping

• For other venues of practice, a certified true copy shall be obtained from the dental school and Certificate of Registration and Professional Identification Card obtained at PRC and properly posted at the aforementioned areas.

Page 36: Dental Office Bookkeeping

Permits

Page 37: Dental Office Bookkeeping

• A person engaged in the practice of a profession requiring government examination such as a dentist is, by express provision of the Local Government Code, exempted from this requirement.

Permits

Page 38: Dental Office Bookkeeping

• Also licensed dentists and members of good standing Philippine Dental Association, are exempted from payment of Mayor’s Permit because the practice of Dentistry is an exercise of a profession and not a business concern.

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•However, the code instead provides for a professional tax on professionals belonging to this class.

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• Professional Dentist who has paid the corresponding professional tax to the province where he practices his profession shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national

Taxes

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or local tax, licenses, or fee, including the Mayor’s Permit or license fee, for the practice of such profession.• According to:– SEC. 139. Professional Tax.

Page 42: Dental Office Bookkeeping

• SEC. 139. Professional Tax. – (b) Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession.

Page 43: Dental Office Bookkeeping

Thank You!