Financial Practices

Part 4: Basic Financial Practices
MAERB Competencies: VI.C.1, VI.C.2, VI.C.3, VI.C.4, VI.C.5, VI.C.6, VI.C.7, VI.C.8, VI.C.9,
VI.C.10, VI.C.11, VI.C.12 and VI.C.13.
Due: Week 14
A medical office is a business. If it is to succeed, it must produce a profit. Bookkeeping and banking are
two key responsibilities of the medical assistant. In order to fulfill these responsibilities you will need an
understanding of basic accounting and financial management skills.
In class, you have practiced basic finance/accounting skills by completing various written and electronic
proficiencies. Based on this practice and the information you learned from classroom discussions,
assigned readings, and research; describe the following:

1. Describe and differentiate between bookkeeping and accounting principles. Include the concepts
   of single-entry ledgers, double-entry, pegboard and computerized data. VIC. 2
   2. When completing basic bookkeeping computations, there are certain adjustments you might make
   to a specific account. Discuss three types of computation adjustments you might make. Include
   the correct protocol for each. How can you ensure that errors are not made when these
   adjustments are recorded? VIC. 1
   3. Describe banking principles, including the various types of checks, types of endorsements,
   deposits and reconciliation of financial statements. What precautions should you take when
   accepting either patient or third-party checks? VIC. 3, VIC. 4, VIC. 5
   4. Describe the difference between accounts payable and accounts receivable. Include specific
   examples of each in your discussion. VIC. 6
   5. Compare and contrast the pros and cons of manual versus computerized bookkeeping systems.
   Which system would you prefer to use and why? VIC. 7

6. Identify and describe common periodic financial reports, including payroll, trial balance sheets,
   cash flow and statement of income/assets. VIC. 8
   7. Identify and describe various billing and payment options in a medical office, including charge
   slips, cash, checks and third party reimbursements. VIC. 9
   8. Describe procedures for preparing patient accounts, including open book method, written
   contracts and the use of an age analysis. VIC. 10
   Bryant & Stratton College Medical Assisting Program
   Competency Project for MAERB Core Curriculum
   AHLT 245 Medical Office Procedures
   5
   9. Describe procedures for collecting outstanding accounts. VIC. 11
   a. What protocols must be in place to ensure legal protection of both the patient and the
   office?
   b. Describe the impact of both the Fair Debt Collection Act and the Federal Truth in
   Lending Act on both the patient and the medical office. VIC. 12
   c. Describe adjustments that may be made to a patient’s account. VIC. 13