Research and describe the three types of bookkeeping systems. Which of the three systems do you think would be the easiest to work with in the medical office? (Peg Board, Single Entry, Double Entry) Why? Single entry is similar to a checkbook register. It only has one line entered in the journal for each transaction. Each transaction is recorded in the one column of the account. It is either a positive or a negative amount in the order to represent the receipt or disbursement. Single entry is extremely simple and easy to use. The concept of double entry is in every transaction there are two effects. These two effects are known as Debit (Dr) and Credit (Cr).
“Accounting system is based on the principal that for every Debit entry, there will always be an equal Credit entry. This is known as the Duality Principal” (Accounting-Simplified).
Debit entries include, increase in assets, Increase in expense, decrease in liability, decrease in equity, and decrease in income. Credit entries include, decrease in assets, decrease in expense, increase in liability, increase in equity, and increase in income. Double entry is recorded in every manner that the account equation is always balanced out evenly. One-Write System or Pegboard provides convenience in check writing that is not available in computer systems. Checks can be written instantly, when needed, either inside or outside the office. “The One-Write System Check Register provides an accurate copy of every check written for posting to the computer “after the fact”” (inkoneverything).
The Essay on The Double Entry System
According to the double entry accounting system, a business transaction affects at least two accounts and the debit and credit amounts recorded for the affected accounts must be balanced. These transactions will be recorded in the appropriate books of accounts. Business entities develop a chart of accounts, a list of account titles with their corresponding account codes that the business will use ...
Pegboard is very useful in the heathcare/medical world. It is a single form that assures the collect charges and payments are recorded correctly on all other forms. In my opinion, I would like to work with the pegboard system. It may be a little harder to learn but I think it would be worth it. It has everything you need to keep an office or clinic running smoothly financially wise. Everything will be in the system and it will be easy to look it up. References
Accounting-Simplified. Concept of Double Entry. Retrieved from http://accounting-simplified.com/double-entry-accounting.html Southern California. One-Write Systems (Pegboard).
Retrieved from http://www.inkoneverything.com/pegboardaccountingsystem.html QuickMBA. Accounting. Single Entry Bookkeeping. Retrieved from http://www.quickmba.com/accounting/fin/single-entry/
