The bookkeeping system used by most medical practices is the double-entry system. In this system:
1. Each financial transaction is recorded in at least two different accounts.
2. Every entry has a corresponding and equal debit and credit.
3. It provides a more accurate and detailed view of a practice's financial status.
4. It follows the accounting equation: Assets = Liabilities + Equity.
5. It helps in identifying errors and discrepancies in the financial records.
By using the double-entry system, medical practices can maintain accurate financial records, track revenue and expenses effectively, and ensure compliance with accounting standards.
