Bookkeeping and Accounting Fundamentals

Bookkeeping involves the recording of financial transactions and can be divided into accounts receivable (money owed to the practice) and accounts payable (money owed by the practice).
Accounting is the process of recording, classifying, and summarizing financial transactions.
Accounts Receivable: Includes charge slips for transmitting financial data, daily journal pages that mark transactions for patients seen each day, and walkout statements showing current account balances.
Types of Fees: Simple fees entail unconditional payments for services rendered, while contingency fees depend on treatment type, duration, and complications.
Payment Types: Includes payment in full, statements, divided payments, and dental insurance.
Payment Methods: Cash, checks (providing proof of payment), credit cards (offering reduced paperwork), and insurance (allowing patient choice of provider).

Overhead Expenses categorized into fixed overhead (ongoing expenses like rent, utilities, and salaries) and variable overhead (expenses like supplies and contractor fees).
Income Categories:
- Gross Income: Total professional income received.
- Net Income: Gross income minus practice-related expenses.

Types of Supplies:
- Consumable supplies: Used up during procedures.
- Disposable supplies: Single-use items discarded post-procedure.
- Expendable supplies: Low-cost items replaced frequently.
- Equipment: Major purchases that last 5+ years, subject to depreciation.
Guidelines for Storing Supplies:
- Maintain a central storage area for supplies.
- Limit stock to a minimum amount.
- Monitor light or heat-sensitive products.
- Utilize storage bins for organization.
- Regularly check supplies, reorder points, and dispose of expired items.

Internal Marketing: Focuses on engaging existing patients and generating referrals; involves patient perception, staff interactions, first impressions, case presentations, and targeted advertising.
External Marketing: Aims at attracting new patients outside the current pool.

Loyal patients contribute to a productive practice and financial stability.
Success factors for retaining patients include cleanliness, location, reasonable fees, personality, sincerity, thoroughness, courtesy, gentleness, punctuality, well-maintained office/equipment, and updated knowledge.
Common reasons for patient attrition include unreasonable fees, inconvenient location, lack of dentist presence, delays, discrimination, and personality conflicts.