4 The American system absorbs more in unrecoverable costs due to fraud each year than the entire Canadian healthcare system costs to run! Higher costs mean less affordability and less coverage—a real thing that’s happening. The creeping loss of health insurance coverage year-over-year portends a disastrous outcome for the health and welfare of tens of millions of Americans if we don’t act. It is not uncommon for nurses or physicians to also manually review these claims during this process. Medical records may be requested to compare the claim with the medical documentation. This can be conducted for any type of procedure but most commonly with an unlisted procedure to determine medical necessity. This creates a better patient experience and eases pressure on call center staff by removing the need for multiple time-consuming phone calls. The final phase of the healthcare claims processing cycle is the generation of the patient statement. The patient statement provides the patient clear documentation of the amount charged. The patient statement informs medical billing process the patient of any remaining balance, so that patients are notified of what unpaid amount they are responsible for. The final and most crucial part of the medical billing process is guaranteeing those […]

A doubtful account is an account that you expect will never be paid off. You can use aging to estimate what your allowance for doubtful accounts will be. There is one more point about the use of the contra account,Allowance for Doubtful Accounts. In this example, the $85,200 totalis the net realizable value, or the amount of accounts anticipatedto be collected. Benefits of accounts receivable aging The second reason is so that the company can calculate the number of accounts for which it does not expect to receive payment. Using the allowance method, the company uses these estimates to include expected losses in its financial statement. Accounts receivable aging sorts the list of open accounts in order of their payment status. There are separate buckets for accounts that are current, those that are past due less than 30 days, 60 days, and so on. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. Either way, the past due intervals show you how much is overdue, how long it has been an outstanding balance, and which accounts need immediate attention (e.g., contact the customer for […]

Going Concern Concept – states that companies need to be treated as if they are going to continue to exist. This means that we must assume the company isn’t going to be dissolved or declare bankruptcy unless we have evidence to the contrary. Thus, we should assume that there will be another accounting period in the future. What is your current financial priority? Ed’s capitalizes these licenses and amortizes them in the years he doesn’t need a deduction and he expenses them in the years that he needs a tax deduction. This violates the consistency principle because Ed uses different accounting treatments for the same or similar transactions over time. For example, if the performance is based on Net Sales, management might not recognize revenues by using the same accounting policies. Learn At Your Own Pace With Our Free Courses In the last few years, Bob’s has become quite profitable and Bob’s accountant suggests that Bob switch to the LIFO inventory system to minimize taxable income. Companies are allowed to switch accounting methods if the company can demonstrate why the new method is better than the old method. The four basic principles of GAAP include the Revenue Recognition Principle, Matching […]

Under federal law, to calculate a nonexempt employee’s regular rate of pay, divide the weekly salary by the total number of hours worked. Multiply all overtime hours worked by the overtime pay rate. Under federal law, the total pay would be (regular pay rate x 40) + (extra hours x regular pay rate x 1.5). What is a payroll register and how to use one? Other exemptions exist, such as those for farmworkers and certain seasonal or recreational businesses. The FLSA narrowly defines exemptions, so employers should refer to the DOL for more specific guidelines. Our state payroll guides break down all laws and regulations that you’ll need to consider on a state-by-state basis, from minimum wage and overtime regulations to vacation accrual payouts. Check out our state payroll directory and click on your state for more information. Some employees may have different pay scales for different duties, such as sales vs back room. Are part-time employees entitled to overtime pay? The Department of Labor(DOL) requires most private employers to pay overtime instead of giving compensatory time. Even if your boss doesn’t approve the extra hours, they still must pay you for overtime. While it’s common in government jobs and […]