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Accounts Payable (A/P)

The total amounts owed by the practice to suppliers and service providers for business operating expenses.

Accounts Receivable (A/R)

All outstanding accounts (amounts due to the office) and a reporting system for unpaid accounts.

Credit

A payment subtracted from an existing balance.

Debit

To deduct or charge; a charge added to an existing balance.

Day Sheet

A form for recording daily financial transactions of charges made and payments received.

Revenue Cycle

All aspects of transactions including coding, billing, collections, and payments that impact billing and accounting.

Remittance Advice (AR)

A document from the insurance company with the approved amount and payment for services provided.

Posting

The transfer of information from one record to another.

Date of Service (DOS)

The calendar date a service begins or is provided.

Nonsufficient Funds (NSF)

When a patient does not have enough money in their account to cover a check.

Bankruptcy

The state of being bankrupt; legally declared unable to pay debts.

Aging of Accounts

Dividing accounts into categories based on the time since the first billing date.

Write-offs

A reduction in the value of an asset or earnings deemed uncollectible.

Cost-Benefit Analysis

An analysis demonstrating whether the benefits of a program outweigh its costs.

Assets

Anything owned that has exchange value; resources of a person or business.

Managerial Accounting

The study and analysis of financial data as it applies to operational issues within a company.

Invoice

A document detailing the itemization of goods and services provided along with charges.

Income Statement

A statement demonstrating profit and expenses for a given month, including year-to-date information.

Petty Cash

A small amount of cash for small business expenses, maintained in a locked container.

Adjustments

Credit entries made to decrease a balance owed to the medical office.

Ledger

A record of all charges/services, payments made, and adjustments with specific dates.

Visit Capture

Entering diagnosis and procedure codes along with patient encounter information.

Revenue Cycle Management (RCM)

Managing the financial side of the medical business related to transactions from medical encounters.

Debit Balance

Occurs when the amount paid is less than the total due.