Collection Agency Bookkeeping Entries Question


(Utica, NY )

Bookkeeping Entries

Bookkeeping Entries

Our office uses "The Therapist" software by Beaver Creek for our accounting. When we receive a payment from the collection agency, it is entered into our accounts receivable.


My question is, how do we enter the payment on the patient's account? It seems to me it should also be reflected on the individual patient's account, or isn't that necessary?

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Jun 11, 2018
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starstarstarstarstar 		Collections Bookkeeping Entry
by: Stephanie

Hello,

Thank you for your inquiry. I've always used QuickBooks, but most accounting software are fairly similar. In QuickBooks Accounting Software, when you are entering a payment into Accounts Receivable, you are able to also enter the patient's name so that the patient account is updated at the same time.

You will definitely want the payments reflected in the individual patient accounts for billing purposes.

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Entering a Shareholder Expense Report.

by Marina
(Calgary, Alberta, Canada)

Shareholder Expense Report

Shareholder Expense Report

I am getting very flustered because I am over thinking this. If you could help me I would appreciate it very much.

My boss (shareholder) recently started a company and has to submit his expense report in order to be reimbursed from the company. Now the three accounts I think I will be using are

1) Expense account
2) Loan from Shareholder (Liability)
3) GST Paid on purchase

(If I need an extra account please advise)

so I am confused which account would be a debit and which would be a credit. Also for his expense report which he has submitted would I even enter GST Paid on purchases or leave it off?

I thought it should be:
1) Expense -Debit
2) Loan from Shareholder-Credit
3) GST Paid - Debit

I hope you can help me as soon as possible thank you.

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Aug 09, 2023
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starstarstarstarstar 		Shareholder Expense Reimbursement
by: BB

Let's simplify this. When a shareholder submits an expense report to be reimbursed, the company essentially owes him that amount. If the company has not yet paid the shareholder, the amount becomes a liability to the company.

Here's how to handle the transaction:

For every expense that the shareholder incurred:

Expense account (like Travel, Meals, Office Supplies, etc.) would be debited for the amount excluding the GST. This represents the actual cost of the expenditure.

If the company is eligible to reclaim GST:

GST Paid on purchase would be debited for the amount of the GST. This captures the GST that can be claimed back.
The amount the company owes the shareholder for the reimbursement would be:

Loan from Shareholder (Liability) would be credited for the total amount including GST. This represents the amount the company owes the shareholder.

So, your thought process was correct. You would Debit the Expense and GST Paid accounts, and Credit the Loan from Shareholder account.

If the company later pays off the shareholder:

Loan from Shareholder would be debited (decreasing the liability).

Cash or Bank account would be credited (decreasing the asset as the cash is paid out).

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Entering Bounced Cheque

Manual Bookkeeping Tips

Manual Bookkeeping Tips

How do I record a returned check in traditional bookkeeping?

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Aug 09, 2023
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starstarstarstarstar 		Manual Bookkeeping Tips
by: BB

In manual bookkeeping, when a check bounces, you need to reverse the original entry you made when you deposited the check. Here are the steps:

Debit your bank account for the amount of the check. This reduces the bank balance by the amount of the bounced check.

Credit the account receivable (or the specific customer's account) for the same amount. This indicates that the customer still owes you this money.

Additionally, if there are any bank fees associated with the bounced check, you should:
3. Debit an expense account, like "Bank Service Charges," for the amount of the fee.

Debit your bank account for the same fee amount.
Remember to make a note in your ledger about the reason for these entries, so it's clear when reviewing your books later.

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Entering Dates for General Journal Entries

by Deedi
(Berkeley CA)

Non-Profit Bookkeeping Tips

Non-Profit Bookkeeping Tips

In a non-profit setting, should General Journal Entries (GJE) like interest income and PayPal transactions be dated based on the actual transaction date or according to the bank statement date for easier reconciliation?

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Aug 09, 2023
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starstarstarstarstar 		Non-Profit Bookkeeping Tips
by: BB

For accuracy and consistency in bookkeeping, it's best to date General Journal Entries based on the bank statement date. This practice ensures that the entries in your accounting system align with the bank's records, making the reconciliation process straightforward and error-free. Manipulating dates can lead to confusion, misalignment of financial records, and potential errors during reconciliation, making the financial records less reliable.

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Entering Year End WIP

WIP Journal Entries

WIP Journal Entries

Could you tell me what the corresponding entry would be when I am entering my Work in Progress on the balance sheet?

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Aug 09, 2023
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starstarstarstarstar 		WIP Journal Entries
by: BB

When entering your Work in Progress (WIP) on the balance sheet, you're essentially recognizing the value of incomplete work, which hasn't yet been billed to clients or recognized as revenue.

For the corresponding entry:

Debit: Work in Progress (under Current Assets on the balance sheet)

Credit: Cost of Goods Sold (on the Income Statement) or directly to the respective expense accounts, depending on how you are tracking these costs.

When the work is eventually billed to the client and revenue is recognized, you'll reduce the WIP account and record it as revenue.

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Entries Required to Correct Deposit Error

by Rick
(Kelowna, BC, Cda)

Correcting Bank Deposits

Correcting Bank Deposits

We deposited and our bank cleared a cheque written to another company. I have written a check to that other company. I know I need to credit my bank account, but what account do I debit?

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Aug 09, 2023
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starstarstarstarstar 		Correcting Bank Deposits
by: BB

If you deposited a cheque written to another company into your bank and it cleared, and now you've written a check to correct this mistake, you're essentially reversing the incorrect transaction.

When you mistakenly deposited the cheque:

Debit: Bank Account
Credit: Miscellaneous Income (or another temporary account)
Now that you're writing a check to correct it:

Debit: Miscellaneous Income (or the account you credited earlier)
Credit: Bank Account

In essence, the debit to "Miscellaneous Income" (or your temporary account) will offset the initial credit you made when the mistake occurred, bringing everything back into balance.

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Recording Service Entries

by Alan
(Richmond, VA)

Deposit Mistakes

Deposit Mistakes

How can I rectify a situation where I mistakenly deposited a check meant for another company and then wrote a check to fix this?

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Aug 10, 2023
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starstarstarstarstar 		Rectifying Deposit Mistakes
by: BB

If you inadvertently deposited a check meant for another business and have since issued a check to address the error, you're essentially undoing the initial incorrect action.

When the wrong check was deposited:

Debit: Bank Account
Credit: Accidental Revenue (or another relevant account)
Upon writing the corrective check:

Debit: Accidental Revenue (or the account you initially credited)

Credit: Bank Account
By debiting "Accidental Revenue," you negate the original credit from the erroneous deposit, ensuring all balances are correct.
Aug 09, 2023
Rating
starstarstarstarstar 		Rectifying Deposit Mistakes
by: BB

If you inadvertently deposited a check meant for another business and have since issued a check to address the error, you're essentially undoing the initial incorrect action.

When the wrong check was deposited:

Debit: Bank Account
Credit: Accidental Revenue (or another relevant account)
Upon writing the corrective check:

Debit: Accidental Revenue (or the account you initially credited)

Credit: Bank Account
By debiting "Accidental Revenue," you negate the original credit from the erroneous deposit, ensuring all balances are correct.

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