What should you do if a non-sufficient funds check is returned to the office?

When a non-sufficient funds (NSF) check is returned to the office, it is important to accurately maintain your financial records. Subtracting the amount of the NSF check from the income balance ensures that the financial statements reflect the actual cash flow of the practice. This action prevents the income from being overstated, which could lead to inaccurate financial reporting and potential issues with budgeting and financial planning.

This practice also helps in managing accounts receivable effectively by allowing the office to recognize that the amount previously expected as income is no longer valid because the payment was not successfully processed. Consequently, addressing the return of the NSF check in this manner keeps the financial records in alignment with the realities of cash received and ensures accurate tracking of outstanding payments owed by the patient.