Beaverlog Tips: Volume 15 - September 2, 2003
Income Reports Revisited
Before presenting this month's article, I want to add some comments about the previous article on Income Reports. Customer Elaine Brooks pointed out that the IRS treats payments as income as soon as they are received, not when someone applies them to services in The THERAPIST. Of course, this is true and these payments should always be considered as income unless they create an overall credit balance on a patient's account.
If you want The THERAPIST to report income this way, you have to enter and apply the payments immediately (or at least before you want to report on them). Some offices prefer to initially enter patient payments as prepayments and wait until an insurance payment and/or EOB is received before applying the patient payment to services. Both income reports show these prepayments although they are not added into the income totals.
The descriptions of the different reports and what they report are valid and you have to choose which report to use based on your circumstances.
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