A Basic Introduction to Accounts Receivables
If one were to reduce business to the simplest terms, one would probably call it the selling of goods by one person, and the buying of those same goods by another. Thus, whether we pay cash or run up a tab while doing business, money has to change hands during the course of a business transaction.
Accounts receivables is one such type of a business transaction. It refers to the way of dealing with amounts of money that are owed to a business by its customer. On the balance sheet of a company, accounts receivable refer to the amount of money that a customer owes it. Accounts receivables are also referred to as trade receivables, which makes the concept a little clearer. As this is a debt related amount, it appears under the category of current assets on the balance sheet of the company.
An accounts receivables transaction is generally carried out by means of an invoice which is sent to the customer with the aim of informing him of the duration within which the debt amount must be paid off. The term within which the debt has to be paid may be thirty days, forty-five days, sixty days, or even as much as ninety days. However, the duration of the debt depends entirely on the debtor and the creditor.
Various payment practices may be followed. These practices may be determined by the various industry standards. They may also be colored by the financial status of the debtor, or affected by the company’s corporate policy.
Larger business organizations usually have to resort to the development of an entire accounts receivables department to look into the various kinds and amounts of debts that its customers owe it. A sales ledger is usually used to record transactions that pertain to accounts receivables.
Anyone who is starting out on a new business venture would have to learn about the various kinds of accounting terms and practices that are carried on within various industries. To get into a business undertaking without adequate study of the various accounting practices would be committing professional hara-kiri. Accounts receivables is only one of the many kinds of transactions that prevail in a business setting.
No matter what noble work you hope to do through your business, ultimately you would want it to be financially sound. So, you should make sure to find out about the many financial transactions that will enter into the picture once you start selling your products or services.
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How Does Medical Billing Help With Accounting?
Medical billing. This is probably not the first time youve heard of this word and you pretty much have a basic idea what the phrase connotes. However, one thing you should know is that most people have the wrong idea of what is medical billing in reality.
Often, what is medical billing is equated with what is medical transcription or what is medical coding when in fact, the three are as separate and as distinct from each other as night and day. While its true that all three of them are somehow related and sometimes even their responsibilities overlap, it still doesnt change the fact that medical coding deals strictly with codes and medical transcription is strictly on transcribing doctors notes.
So, what is medical billing then?
Some people say it is the doctors key to getting paid for services rendered. Others say that it is a process of submitting claims to insurance companies. But these descriptions are vague. What is it really?
Perhaps, the question what is medical billing is better answered with this definition of the term:
Medical billing is practice management. It involves front office skills, with emphasis on billing and accounting, insurance claims processing, and making decisions concerning the financial aspects of a practice.
What is medical billing compared to medical coding and medical transcription?
Compared to medical coding and medical transcription, medical billing is wider in scope and broader in its range of responsibilities. Front office also means acting as an executive secretary to the practice, dealing in clerical work such as patient scheduling, clearing appointments, documenting patient visits, recording diagnostic and treatment procedures, and organizing medical records using a software program.
What is medical billing and what are its responsibilities?
The job of the billing professional starts with the office visit where you will handle everything from scheduling of the appointment to making sure that the patient makes it to his appointment. After the doctor sees the patient, depending on the services provided and the examination, he will then create and update the patients medical record.
The billing professional then organizes these records according to a system earlier adopted by the practice. This record contains a summary of treatment and demographic information related to the patient. The medical billing specialist will have to organize these records according to their contents to provide for easier access in case of another visit or some such circumstance and to create the billing record which is the document submitted to either a clearinghouse or an insurance company.
T J Madigan has been established in online business since 1998 and is director of a number of successful online projects one of which is http://www.articles.net.au your best source for FREE articles and information.
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