If a patient’s treatment plan is $1000 and they use a 3rd party finance company like Care Credit, the total amount I receive is something like $900 (for example). How do you account for the “finance fee” difference?
Currently I enter $900 as payment received and enter $100 as a write off. Is there an advantage to doing it another way?
In QuickBooks you enter the deposit as a split transaction:
$1,000 to fee income, revenue, whatever you call it, and
$100 (or -$100) as collection expense
$900 is your net deposit.
It’s that simple.
If that was your ONLY transaction for the day and you ran a P&L statement it would look like this:
Net income 900
PMS should show $1,000 payment.
So, if I have only accounted for the NET credit card or Care Credit payment on my QB (which for me is all that counts from an accounting perspective)–then I have essentially done the accounting, right? In other words, I cannot go back and claim an expense for the processing/finance fee?
Correct, no double dipping allowed…