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Drs. Jones and Smith have spent the last 15 years of their life in college learning all there is to know about medicine, specifically surgery. However, they have questions about why they must set up an accounting system, track expenses and revenue, and institute policies regarding receipt of payments, billing, and financial monitoring. Provide three reasons explaining why it is important to account for income and expenses; three reasons why they need policies for handling money; and one reason why billing must occur within a reasonable time after services have been rendered.

Reference:

• Harrison, C., & Harrison, W. P. (2013). Introduction to health care finance and accounting. Cengage.
• Mason, R. (2015). Accounting and finance in 4 weeks: The complete guide to success. Hodder & Stoughton.