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Accrual accounting allows for an accounts receivable amount to be recorded when treatment is provided, but payment expected a later day. Cash accounting requires the
Accrual accounting allows for an accounts receivable amount to be recorded when treatment is provided, but payment expected a later day. Cash accounting requires the account receivable amount and payment amount to be recorded at the same time. Accrual accounting is best for healthcare because payments for healthcare services are not collected at the time of delivery. Instead, they are collected after the services are provided and reviewed by the third-party payer
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