Which System of Bookkeeping Is Best

Which System of Bookkeeping Is Best.A simple system of keeping accounts is necessary. There are many systems on the market, ranging all the way from the simple blank ledger to the elaborate desk systems. I prefer the card system or the single book. As only records of original entry are accepted in courts as evidence of account, a complicated system would hardly be suited to the average physician. The entry must be so clear and simple that any ordinary person can readily understand the account, hence, any system that depends upon ciphers or marks is valueless. A physician that is a good bookkeeper can no doubt handle the[20] complicated systems successfully, but as I was not trained as a bookkeeper, the simplest, clear, legal system meets my needs.

Always enter each day’s work on the day it is done. Don’t wait until tomorrow, or next Sunday to make up your books. By cultivating the habit you can get as much pleasure out of entering charges in your books as you could from some calls. I have seen the time when I got more real joy out of receipting one bill than I would in going seven miles in the country on a stormy night to see a dead-beat. Life is but a joke, but it isn’t wise to let the dead-beat have the joke on you all the time.

Don’t scatter your accounts on the book. Keep them close together and they will be seen more frequently. It is better to run over the pages when entering charges than to refer to the index, as you will be reminded of other entries that should be made, and accounts that need looking after.

Once an account goes on your books, never lose sight of it or give up until it is settled, or otherwise disposed of. It is a bad habit to skip an account when making out statements. Treat them all alike. It may be advisable to classify your accounts, but you should never fail to push the collection of every account on your books.

In charity practice, enter on your book at the regular rate, and credit to charity to balance. In this way you keep an account of[21] the extent of your contributions to charities.

Keep a stub of each statement you send out so that your client can not bring in an old one and dispute your account. The following form will meet every requirement for a statement. By retaining the stub you have a complete record of your statements.

The best way to hold practice is to collect your accounts. More people change doctors because they owe big bills than for any other reason.

Never tell a debtor that you are hard up and need the money. He won’t believe you, and will not only neglect to pay you, but will change to some other doctor. Tell them that you must have the money because it is yours and that you want the profit that may be made with it. Put it up to them as a plain business proposition and loan them the amount if they pay you interest and give good security. They will respect you when you make them pay. A man is judged in this country by his business success. Most men would rather pay a lawyer a thousand dollars to keep them out of the penitentiary for a year, than[22] to pay a doctor fifty dollars to keep them out of hell for a life time.

Office and transient practice should be cash or an order note. The following form will prove valuable:

…………………………………..191..

After date, for value received, I promise to pay ……………………….or order………………..Dollars, the same to be paid in…………………………payments of $………………..each, until the sum of $……………… has been paid.

For Value Received, I, the undersigned, hereby sell, assign, transfer and set over unto…………………….all my right, title and interest in and to all of my salary, wages or any moneys due, or to become due, to the amount of……………………………Dollars, from any person, firm or corporation, and order the said amount to be paid to the bearer out of the first moneys due me after the presentation of a copy of this instrument. I hereby irrevocably waive all exemptions or other rights I may have by means of any law of any state in which I now, or may hereafter be employed or reside. I agree to pay all costs and attorney’s fees that may be incurred in collecting the above amount.

Name…………………………………………………………

Occupation…………………………… Address…………………………

Employed by………………………… Address…………………………

I have this form printed on cards and file them in a card file. This contract note not only helps to get the money, but it solves the problem of holding chronics and venerals. It is seldom necessary to present the order for payment. When you write a letter advising your client that you will be compelled to present the order to his employer if he doesn’t[23] come in and see you, he will show up in a very short time.

Subscribe to the Merchant’s Exchange. If a man will not pay his store bills you cannot expect him to pay his doctor. Get the cash when you find his name on the list, or let the other doctor have the case.

After entering an account on your books, make no rebates or discounts. Buy a hog for four times its value, if necessary, but don’t discount your bill.

If account is paid by check, remember the following points:

When a check is post-dated (dated ahead), if payed before the date mentioned, the money can be recovered.

When post-dated checks fall due on Sunday or a legal holiday they should be presented on the day following.

Changing the dates of checks without the consent of the drawers will make the checks void.

Checks that are not dated, or that do not contain any statement when they are to be paid, are never payable.

Bank checks are but orders on the bank for the payment of money, and are payable in the order in which they are presented at the bank.

Do not hold checks, but present them for payment as soon as possible.

If a check is not paid on proper presentation, resort may be made to the original claim. Have the banker endorse the reason[24] for non-payment on the check.

Certified checks are checks that have been endorsed by the bank, and constitute payment as to the persons drawing them.

If a check is turned down at the bank notify the drawer at once.

If you receive a check and endorse it and place in your bank for collection, and it is turned down, do not return it to the drawer until you get a remittance to cover, without first erasing your endorsement.