BOOKKEEPING AND STATEMENTS.
A simple system of keeping accounts is necessary. There are many systems
on the market, ranging all the way from the simple blank ledger to the
elaborate desk systems. I prefer the card system or the single book. As
only records of original entry are accepted in courts as evidence of
account, a complicated system would hardly be suited to the average
physician. The entry must be so clear and simple that any ordinary
person can readily understand the account, hence, any system that
depends upon ciphers or marks is valueless. A physician that is a good
bookkeeper can no doubt handle the complicated systems successfully,
but as I was not trained as a bookkeeper, the simplest, clear, legal
system meets my needs.
Always enter each day's work on the day it is done. Don't wait until
tomorrow, or next Sunday to make up your books. By cultivating the habit
you can get as much pleasure out of entering charges in your books as
you could from some calls. I have seen the time when I got more real joy
out of receipting one bill than I would in going seven miles in the
country on a stormy night to see a dead-beat. Life is but a joke, but it
isn't wise to let the dead-beat have the joke on you all the time.
Don't scatter your accounts on the book. Keep them close together and
they will be seen more frequently. It is better to run over the pages
when entering charges than to refer to the index, as you will be
reminded of other entries that should be made, and accounts that need
looking after.
Once an account goes on your books, never lose sight of it or give up
until it is settled, or otherwise disposed of. It is a bad habit to skip
an account when making out statements. Treat them all alike. It may be
advisable to classify your accounts, but you should never fail to push
the collection of every account on your books.
In charity practice, enter on your book at the regular rate, and credit
to charity to balance. In this way you keep an account of the extent of
your contributions to charities.
Keep a stub of each statement you send out so that your client can not
bring in an old one and dispute your account. The following form will
meet every requirement for a statement. By retaining the stub you have a
complete record of your statements.
No................| STATEMENT
Name..............| .......................19..
Address...........| Mr................................
Date sent.........| To J. M. SMITH, M.D. Dr.
Previous bill sent| To Professional services
..................| to date - - - $...........
Am't paid.........| All accounts are due and payable
Collector.........| when services are rendered.
The best way to hold practice is to collect your accounts. More people
change doctors because they owe big bills than for any other reason.
Never tell a debtor that you are hard up and need the money. He won't
believe you, and will not only neglect to pay you, but will change to
some other doctor. Tell them that you must have the money because it is
yours and that you want the profit that may be made with it. Put it up
to them as a plain business proposition and loan them the amount if they
pay you interest and give good security. They will respect you when you
make them pay. A man is judged in this country by his business success.
Most men would rather pay a lawyer a thousand dollars to keep them out
of the penitentiary for a year, than to pay a doctor fifty dollars to
keep them out of hell for a life time.
Office and transient practice should be cash or an order note. The
following form will prove valuable:
..............191..
After date, for value received, I promise to pay
............. or order...........Dollars,
the same to be paid in...............payments of
$.............each, until the sum of $............
has been paid.
For Value Received, I, the undersigned, hereby
sell, assign, transfer and set over unto..............
all my right, title and interest in and to all of my
salary, wages or any moneys due, or to become due,
to the amount of.................Dollars, from any
person, firm or corporation, and order the said amount
to be paid to the bearer out of the first moneys due
me after the presentation of a copy of this instrument.
I hereby irrevocably waive all exemptions or
other rights I may have by means of any law of
any state in which I now, or may hereafter be employed
or reside. I agree to pay all costs and attorney's
fees that may be incurred in collecting the
above amount.
Name.................................
Occupation.............. Address..................
Employed by............. Address..................
I have this form printed on cards and file them in a card file. This
contract note not only helps to get the money, but it solves the problem
of holding chronics and venerals. It is seldom necessary to present the
order for payment. When you write a letter advising your client that you
will be compelled to present the order to his employer if he doesn't
come in and see you, he will show up in a very short time.
Subscribe to the Merchant's Exchange. If a man will not pay his store
bills you cannot expect him to pay his doctor. Get the cash when you
find his name on the list, or let the other doctor have the case.
After entering an account on your books, make no rebates or discounts.
Buy a hog for four times its value, if necessary, but don't discount
your bill.
If account is paid by check, remember the following points:
When a check is post-dated (dated ahead), if payed before the date
mentioned, the money can be recovered.
When post-dated checks fall due on Sunday or a legal holiday they should
be presented on the day following.
Changing the dates of checks without the consent of the drawers will
make the checks void.
Checks that are not dated, or that do not contain any statement when
they are to be paid, are never payable.
Bank checks are but orders on the bank for the payment of money, and are
payable in the order in which they are presented at the bank.
Do not hold checks, but present them for payment as soon as possible.
If a check is not paid on proper presentation, resort may be made to the
original claim. Have the banker endorse the reason for non-payment on
the check.
Certified checks are checks that have been endorsed by the bank, and
constitute payment as to the persons drawing them.
If a check is turned down at the bank notify the drawer at once.
If you receive a check and endorse it and place in your bank for
collection, and it is turned down, do not return it to the drawer until
you get a remittance to cover, without first erasing your endorsement.