Are you balancing your deposits? Is the money you have entered in your practice management system the same amount that is getting deposited in the bank?
Many offices are not balancing the deposits at the end of every day. If you aren’t, why not? It is much easier to complete this task at the end of the day than trying to figure out what happened the next month when the business owner and accountant are trying to accomplish it.
If the problem is that you are not sure how to complete the task, here are a few steps to follow:
· Every practice management system has some sort of deposit slip report that can be created at the end of the day. The report will separate out checks, cash, credit cards and any other payment types that are entered into the system. Run this report at the end of every day.
· Add up each of the payment types separately that you are taking to the bank and ensure that they match what has been entered in your practice management system. (ie: checks, cash, credit cards, EFTs)
· Your credit cards are generally batched at the end of the day and will give you a total in the merchant system you are using.
· If any of the numbers don’t match what is entered, then go back and find where it is off. The day is not complete until all numbers match.
· Many offices will keep a spreadsheet with each payment type listed separately per day for the month. The numbers all total at the end of each month. This makes balancing the month quite simple. If you need help with a spreadsheet to help keep track of those numbers, let us know. We can help with that.
Some additional items to keep in mind:
· Each day should have its own deposit that goes to the bank. This means at the end of the day; you create a bank deposit slip with all of the checks and cash and total it up. You will then give this to the doctor at the end of the day to take to the bank. There should never be half of yesterday and half of today on one deposit. Keep it simple for the accountant.
· Fun fact: Did you know that if your totals are off by a number that is divisible by 9 that you have probably transposed the numbers. For instance, you wanted to enter 63, but entered 36. The difference is 27 which is divisible by 9.
· If you are having trouble finding the issue that is taking you off balance, step away for a few minutes and come back to look at it later or have one of your team members look at it for you. A lot of times it just pops out to you when you stop staring at it for a little bit.
Why is all of this so important? These are the numbers the accountant uses for the practice to determine overhead and the taxes the practice will need to pay to the government. It is also the yardstick the practice owner is using to determine if the practice can afford things like new equipment, supplies, raises, bonuses, etc. Do you see why it is so important to have this information correct?
Some team members will say this takes too much time to complete at the end of the day. If it is taking too long, then there is a problem somewhere with the data that is being entered. It should be simple addition of each payment type. Most offices will balance right away. If that is not occurring in your practice, determine where the problem lies. Is a team member not taking time to get the numbers in correctly? Are your payment types not separated the same way as the money is going to the bank? Additionally, larger offices that have a lot of transactions will balance once before lunch and then at the end of the day. It makes it easier to determine where the numbers are off if there aren’t so many transactions to review.
Every office should balance their deposits at the end of the day. Let’s make sure the doctors/owners have the correct numbers when evaluating the health of the practice. It can be an advantage for everyone on the team.
As always, if we can be of any assistance to you, please send an email to info@GTSgurus.com.
Janice Janssen, RDH, CFE, Consultant
At age 14, Janice Janssen got an after-school job working for her dentist. Twenty-something years later, she is the co-founder of Global Team Solutions and an expert in practice consulting. Besides hands-on experience, Janice has gained professional recognition for her hard work and commitment to excellence. She is co-author of OMG! Office Management Guide, the “bible” used in GTS training workshops. She is a member of the Academy of Dental Management Consultants (ADMC), and is a Certified Fraud Examiner (CFE), which positions her as an expert in educating dentists to deter fraud and embezzlement in their practice.
Janice can be reached at: janice@gtsgurus.com