Daily, Cash & MISC Charge Control

By Dr. Dean C. Bellavia

Daily Cash Control System:

The Daily Cash Control system is a way of making sure that all that is received each day is posted correctly and deposited in the bank. This paper system is necessary since we are dealing with paper payments (cash & checks) that need to be kept from getting “lost”.

Components of Daily Cash Control:

¨ Daily Cash Control Log book. Each page in the book represents one month.

¨ Daily Cash Control plastic Envelope - to hold daily cash, checks & receipts until the end of the day

¨ 3-Part NCR, sequentially numbered Cash Receipt Books in the practice's name - to control daily cash (computer receipts should not be used and the bookkeeper should do all of the daily posting, never the receptionist).

¨ Daily Financial Control Envelope - to list all daily payments and to reconcile and give to bookkeeper at the end of the day.

¨ Bank Deposit Slips (your own) - to show how much was actually deposited in the bank.

Daily RECEPTIONIST procedures for cash control:

¨ Collect cash from patients and:

· give them the original of a sequentially numbered cash receipt.

· clip the second copy of the receipt to the cash and put them in the control envelope.

· the third copy stays in the book for reference.

¨ Collect checks from patients and:

· place them in the Daily Financial Control envelope if they don't want a check receipt.

· if the patient wants a check receipt, give them a Cash Receipt, noting that it was for a check and place the check in the Daily Financial Control envelope.

¨ Collect checks in the mail and place the checks, along with their envelopes, in the Daily Financial Control envelope.

¨ Collect Credit Card Payments:

· Process the credit card charge in your normal manner (manual or modem connection).

· List the Patient's Name, Account Number and charge payment Amount on the front of the Daily Financial Control Envelope.

· Give the patient a receipt and place the other copy of that receipt in the Daily Financial Control Envelope, noting that it was for a credit card charge payment.

¨ End of the day processing of the Daily Financial Control envelope:

1. Enter the doctor's name, date, office and day of the week and sign the envelope.

2. Enter the total number of Financial Arrangement Forms on the front of the envelope.

3. Enter the total number of Charge Slips on the front of the envelope.

4. Enter any other materials being sent to the bookkeeper.

5. Enter the inclusive numbers the of cash receipts and the total number of Checks

6. Enter the Total Amount of the checks and the Total Amount of the Cash.

7. Tally the Total of the Charge Card Payments and enter it on the next line.

8. Tally the total Amounts of Credit Charges, Checks and Cash and enter the Total.

9. Enter any notes required to explain and enclosures.

Daily Financial Control Envelope

Name of Doctor: ________________________________, Date: ______________________

Office: ___________________, Day of Week: Mono Tueo Wedo Thuo Frio Sato

Name of Person Preparing Envelope: _____________________________________________

Signature of person preparing envelope: ___________________________________________

Number of Financial Arrangements enclosed (from TC): _______

Number of Miscellaneous Charge Control Slips enclosed: _______

______________________________________ enclosed: _______

______________________________________ enclosed: _______

Inclusive Cash Receipt Numbers: from _____________ to _____________ OK o

Total NUMBER of all checks enclosed: ______________ OK o

Charge Card Payment by Patients

Patient's Name Account # Amount Paid

_______________________________ _______________ $ ___________

_______________________________ _______________ $ ___________

_______________________________ _______________ $ ___________

_______________________________ _______________ $ ___________

_______________________________ _______________ $ ___________

_______________________________ _______________ $ ___________

Total AMOUNT of all Credit Card Payments: $ ___________ OK o

Total AMOUNT of all CHECKS enclosed: $ ___________ OK o

Total AMOUNT of all CASH enclosed: $ ___________ OK o

Total AMOUNT enclosed: $ ____________ OK o

Bookkeeper's Signature after

checking (OKo) contents: _______________________________ Date: _________

Notes: ________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

¨ Complete the Daily CASH CONTROL LOG entry for the day: (see page 4 for log)

· Enter Today's Date on the correct Day of Month line.

· Use the numbers and amounts on the Daily Cash Control Envelope to enter:

· Credit Card Payments (front of Daily Financial Control envelope) (Column A)

· the dollar amount of CASH. (Column B)

· the dollar amount of CHECKS. (Column C)

· the Total Amount of Income. (Column D = Column A + Column B + Column C)

¨ Post Dated Checks:

· When there are post-dated checks, the checks are not posted by the bookkeeper until they are deposited in the bank.

· To remember to post the check, note the amount of the check in the Notes column on the right for today. Also enter in the notes column on the line for that future post-dated check date (as indicated in the 1-31 column on the left), the post-dated check amount that you will add to that date's bank deposits.

¨ Seal the Daily Financial Control Envelope and give it to the bookkeeper.

Daily BOOKKEEPER procedures for cash control:

¨ The bookkeeper receives the Daily Financial Control Envelope and:

· opens it and checks the contents against the amounts listed on the front of the envelope at the end of the day or the next morning.

· Signs the envelope indicating that all was correct, or resolves any differences with the receptionist.

¨ The bookkeeper uses the materials in the envelope and posts:

· the new treatment charges on the Financial Arrangement forms.

· the miscellaneous charges on the charge control slips.

· the cash and check payments to the patient's accounts.

· any credit card charged payments to the patient's account.

· any adjustments required on the patient's accounts.

· and then proofs the amounts posted by making a printout of all postings and matching it with the amounts on the Daily Financial Control Envelope.

¨ The Bookkeeper completes the “Daily Cash Control Log”:

· The amount of income posted is entered in Column E on the control log".

· The checks and cash are deposited in the bank and the amount on the deposit slip is entered in Column F on the control log.

· It is obvious that if there are NO charge card payments that Column F equals Column E equals Column D, otherwise the amount posted never equals the amount deposited when there are charge card payments.

· The deposit slip is placed in the Daily Financial Control Envelope, which is filed until the end of the month,

¨ At the end of the month,

· Total Columns & Proof the Daily Cash Control Log.

· Resolve any discrepancies shown by proof (post-dated checks, etc.)

· Start new page next month.

Daily Cash Control Log:

D A Y of mo	Date of Payment (use same date for Posting)	Credit Card Payments (listed on Daily Financial Control Envelope)	$ Amount of CASH	$ Amount of Checks	Total Amount of INCOME	Total Amount Posted to Patient Accounts	Amount Deposited in Bank (on bank receipt)	Notes on differences when columns don't proof out. (post-dated checks?)
		A	B	C	D=A+B+C	E=D	F=B+C	E Column Proofs
^1	01-04-03	$127.00	$465.00	$4,678.45	$5,270.45	$5,270.45	$5,270.45
^2
^3
^4
^5
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