Upgrade to remove ads
Terms in this set (40)
an expense to be paid. An entry made on the left side of an account. Debit has the word debt in it. SLD away = subtract left debit
a payment received. An entry made on the right side of an account. Good credit means you're getting more allowance to do things >>> more money coming in. ARC towards = add right credit
resources owned by an organization that can be used to benefit future operations. Something owned that has value (cash, equipment, land, $ owned) (own that A$$)
the current and non-current financial debts (financial loose ends = liabilities)
a claim to the assets by the owner (equity measures the assets)
profits owed to the shareholders (shareholders own part of the company, equity is a measure of the valuables/assets)
gross income (before anything taken out). Payments for treatment, income from grants or gifts, income from investments. "Top line" (Your services generate a revenue, and you don't pay taxes or bills until after you've made that revenue, so revenue is before taking out anything for debits, liabilities, etc.)
what you actually received from third party payer (not what you billed) (You cast a net for fish, but not every fish gets in the net, so net revenue is what you actually get vs. the revenue which is what you cast for)
money spent to produce or purchase a service or product (salaries, benefits, equipment, supplies, utilities) (business expenses are able to be written off because you spent money to promote your business)
the results after all revenues and expenses have been accounted for. "Net profit" or "bottom line" (revenue or net revenue - expenses = net income)
what is owed the business; monies waiting to be paid to company (think where customers go) (patients will pay accounts receivable because your business want s to receive their money)
what the company owes; monies waiting to be paid out to others (think where employees go) (employees, contracted services, etc. receive their paychecks from accounts payable because they business has to pay them for their services)
a report that lists unpaid customer invoices and unused credit memos by date ranges (by their age) (reviewing debits/liabilities/whatever from oldest to youngest)
calculation used to reduce the value of a fixed asset over a period of multiple years. Can be used to reduce taxes. Think about cars depreciating
statement of an organization's financial condition; lists assets, liabilities, and owners' equity; by definition, total assets = total liabilities + owners' equity (accounting equation). Account will always balance out. (think about algebra sheets and how the equation always has to balance out)
Report on the financial performance of an organization over a specific period of time; Provides a comparison of monies earned (revenue) to monies spent (expenses); Difference between revenue and expenses is the net income or loss during the period; Also known as Statement of Operations or Profit and Loss Statements; Think about monthly income statement from bank.
Reports on the cash that flows through the business; Actual cash and not any future incomes or outgoing cash on account; It is the availability of cash to cover short-term liabilities such as payroll, rent, utilities; Shows how an organizations cash position changes over time and provides a basic report on the financial health
A financial statement of the estimated income and expenditures over a specified future period of time; Format follows the income statement format but reflects the anticipated performance; Multiple types of budgets such as operating, capital, cash flow, special project, strategic; Requires manager to plan ahead, forecast and anticipate what will happen the next year (have to budget for the future)
Budgetary consideration of future changes in healthcare reimbursement, adjustments in market growth, additional staff, raises, increase in insurance costs (scanning outside AKA environmental factors that can affect budget)
Goals and objectives
Budgetary consideration of clear financial goals
Gather data on estimated costs and revenues
Budgetary consideration of how much revenue needed to meet costs?
How will the revenue be generated?
Budgetary consideration of where money will come from
the point where revenue equals expenses
estimated point where practice becomes profitable. Estimated point is usually different from actual break-even point. Break-even = fixed cost/price-variable cost per tx.
indirect cost; costs that are the same regardless of the number of treatment sessions provided (salaries, rent, benefits paid) (circumstances of number of patients, etc. has an INDIRECT affect on these costs)
direct costs; costs that increase as the number of treatment sessions increase (supplies, laundry) (number of patients, etc. has a DIRECT affect on costs)
A full time employee (FTE) works how many hours/year? (this is for a 40 hour work week. 40x52= ?)
Benefit for staff will be what percentage of annual salary?
(how many years it will take me to pay off my student loans / how many years we'll have to work before we can retire / number of tacos I could stress it in a day)
man hours worked x pay rate/hour
Labor cost per tx. session
Labor costs/average # of tx. sessions
= equity = assets-liabilities
(Oprah's net worth is $2.7 Billion, and mine is in the negatives ..... :) )
(types of) Assets
personal cash savings, interest on savings, property
private investors, bank loans
up to 10 years at current business interest rate of 4.5%
investment that you pay share of profits once you start making money (the kind Colson Enterprises made in our clinics/facilities). You don't pay the investment back like you would a bank, but you will pay a % of the profit.
fee schedule, CPT codes, per case, per visit, capitation, actual reimbursement comes in at different times
Fee schedule based on price/unit of care
# of patients per year × # of visits per patient × # of units per visit. × payment per unit
Per diem or per visit
# of patients per year × # of visits per patient × Payment per diem or per visit
# of patients x payment per patient for 1 year
# of covered people x premium per patient per month x 12 months/year
THIS SET IS OFTEN IN FOLDERS WITH...
Exam 1: Intro to Management
YOU MIGHT ALSO LIKE...
Financial Accounting Exam 1
HFT 3424 Exam 2
OTHER SETS BY THIS CREATOR
The PT and PTA Relationship
OTHER QUIZLET SETS
Adulthood & Aging Exam II
Survey of B&A Literature 3rd Quarter Final Studying
HSA midterm #1
Neurology Final - Auditory System