Revenue categories transactions and accounts receivable

Account receivable is not what

Payment

Define revenue

Income generated from normal business operations. It is the top line or gross income figure from which costs are subjected to determine net income

What are accounts receivable

Client debts owed to the vet practice usually resulting from services provided on credit, although can result from any sales made on credit

A receivable results when the client and the practice agree to keep an open account for the client subject to a what

Specified payment plan

Client note receivable

Evidence in a written agreement for payment

what does an A & R account do?

1. identify clients that owe money to the hospital

2. accurately track the amounts owed

3. add a billing or interest charged to the account

4. disclose finance rate and other charges.

5. ages - number of days since the account was last charged.

6. generate a statement for billing purposes monthly.

7. records for the accounts that are paid and enters that information into cash receipts for the day that payment is received.

8. produces reports of current and overdue amounts owed to the hospital.

what is an a/r account and client notes receivable considered as?

loan

welcome to the banking industry a 4 step process

1. client credit policy

2. charge account policy

3. remittance process or policy

4. collections process or policy

what are collection guidelines

train staff, drawer counts, end of day

what are internal controls

ensure against waste, fraud, and error

internal controls assure the reliability of?

accounting data and promote compliance of all company policies.

what are the three internal controls

1. division of duties

2. check and balance

3. dangers of employee and collusion