Four Accounting Buckets

These four terms are used in describing invoicing, financial reporting, and end of day close. See the bottom of this page for graphical representations of Accounts Receivable and Unearned Income.

Accounting Definition: An exchange of money for goods, services, or other property.

patientNOW Definition: Products and procedures provided to the patient. These products and procedures must be received in order to be Sales.

 

Accounting Definition: Compensation, discharge or performance of an obligation, or reimbursement, by giving over something that is of satisfactory value to its recipient, such as money.

patientNOW Definition: Real money in the door entered as a Payment on an invoice (e.g. Cash, Check, Credit Card). Example of something that is NOT a Payment = Credit Payment)

 

Accounting Definition: Accounts receivable is short-term amounts due from buyers to a seller who have purchased goods or services from the seller on credit.

patientNOW Definition: Invoice line items that have a balance due > $0.00. Note: the Invoice may have a $0.00 balance due, but one or more line items may have a balance due > $0.00.

 

Accounting Definition: Unearned income occurs when a company receives money before the money is earned. This is also referred to as deferred revenues or customer deposits.

patientNOW Definition: Invoice line items for which the patient has paid, but not received, or has overpaid. Note: the Invoice may have a $0.00 balance due, but one or more line items may show unearned income (e.g. balance due < $0.00).

patientNOW recognizes 4 types of Unearned Income: Gift Cards, Account Credits, Surgery Deposits, and Prepaid Packages.