March 21, 2013
The three types of bookkeeping systems are Pegboard, Single Entry, and Double Entry. The Pegboard system is also called the write-it-once system. This system is the most widely used manual method of accounting in the healthcare industry. The cost of using this system is a little more than the others. It is a lightweight board that uses pegs to hold all the different forms in place. This system can hold forms for the daily log sheet, patient ledger card, charge slips and deposit slips. This is an easy to use system that saves time and provides accurate balances in the books. Next, the Single-Entry System is an inexpensive and simple way to keep track of accounting. It is one of the oldest and simplest forms of accounting of the three bookkeeping systems and has three basic records: a general journal (which is like a daily log), a cash payment journal (sort of like a checkbook), and an accounts receivable ledger, which is a record of amounts that the patients owe (Young, 2007, pg. 456). There may also be a journal that contains a summary for each day of the year, month, and year. There is also room for recording other inquires such as cash payments unless the checkbook is the only place for cash records in the journal. Each patient has a ledger card that contains the charges and payments from the journal. While this may be a simple, inexpensive, and easy way to go, there are also some disadvantages to using the single-entry system. The errors cannot be found as easily, there are no built in controls, and the periodic analyses are insufficient for financial planning, (Young, 2007, pg. 456). The third type of bookkeeping system is the double-entry. While this system is also inexpensive, it takes a highly skilled and trained person to upkeep the books. This system allows you to record either manually or by computer. Like the single-entry system, the double-entry also requires a basic journal in addition...