How to post insurance payments in SimplePractice?

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To post an insurance payment in SimplePractice, you can enter details manually using your Explanation of Benefits (EOB) or let electronic Payment Reports (ERAs) automate the process.

🗓 Manual Entry Steps

  • Go to the Billing hub or a client's profile.
  • Click Add insurance payment.
  • Enter the Payment Date, Method, and check number.
  • Set the date range to locate target appointments.
  • Input the total payment amount from the EOB.
  • Allocate paid amounts and write-offs for each appointment.
  • Save the payment to update the claim status to Paid.

🤖 Automatic Entry Option

  • Enroll in electronic Payment Reports (ERAs) via SimplePractice Support.
  • Reimbursed claims automatically post matching payments and write-offs without manual entry.

How do I bill insurance through SimplePractice?

To bill insurance through SimplePractice, you must set up your practice details, add your client's insurance information, and submit a CMS-1500 claim through the Billing hub.

1. Set Up Your Practice and Payer Info

  • Go to your SimplePractice Support settings and navigate to the Billing hub > Claim filing info.
  • Enter your practice name, NPI number, and Tax ID/SSN.
  • Go to Settings > Client billing and insurance > Payers to add and enroll with your specific insurance payers.

2. Configure the Client's Profile

  • Go to the client's profile and click Edit client > Billing and Insurance.
  • Set their Billing Type to Insurance.
  • Scroll down to Insurance info, click + Insurance info, and enter their policy details, member ID, and primary policyholder information.

3. Create and Submit the Claim

  • Navigate to the Billing tab in the client's profile or open the central Billing hub > Claims page.
  • Select New > Claim/CMS1500 (or look under the Appointments to file tab).
  • Choose up to six completed appointments to include on the claim.
  • Review the generated claim details, then click Submit to send it electronically through the clearinghouse.

Most users on Reddit agree that electronic claims and ERA (Electronic Remittance Advice) setups streamline reconciliation, though initial payer enrollment can take several weeks.

How to account for insurance claim payment?

You can record an insurance claim payment by depositing the check into your bank account and offsetting it against the original expense or asset loss account.

Steps to Record an Insurance Payout

  • Identify the original loss: Find the expense or asset account where you recorded the initial damage, repair cost, or asset write-off.
  • Deposit the funds: In your accounting software (such as QuickBooks Online), create a bank deposit for the incoming claim check.
  • Categorize the deposit: Select the same expense account used for the repair or loss instead of general income. This action reduces or zeroes out the net cost of the damage.
  • Handle excess amounts: If the payout exceeds your recorded loss, credit the remaining balance to an "Other Income" or "Gain on Insurance Claim" account.

How to record insurance payout?

Record insurance proceeds by debiting your cash account and crediting the specific expense or loss account associated with the claim.

For Current Repair or Operating Expenses

If the insurance check reimburses you for a repair or current expense you already paid:

  • Debit: Cash (for the amount received)
  • Credit: The original Repair or Expense account (this offsets the cost and reduces the net expense on your profit and loss statement).

For Damaged or Destroyed Assets (Inventory or Equipment)

If the proceeds replace a lost or damaged asset, you must first remove the asset from your books and record the loss:

  1. Record the loss: Debit a loss/damage account (e.g., Fire Damage Loss) and credit the asset account (e.g., Inventory) for the book value of the item.
  2. Record the reimbursement: Debit Cash and credit the loss/damage account for the insurance payout received.
  3. If the payout is higher or lower than the book value, the remaining balance goes to a gain or loss on insurance proceeds.

For complex business interruptions or specialized financial reporting rules, review guidance from RSM US Accounting for Property Damage or consult Deloitte's Roadmap on Contingencies.

How to post payments in medical billing?

Posting payments in medical billing involves recording insurance and patient payments, adjustments, and denials into a practice management or electronic health record (EHR) system.

You can learn more about the overall process through the Steps in Payment Posting Guide.

Step-by-Step Payment Posting Process

  • Receive Remittance Data: Collect the Electronic Remittance Advice (ERA) for automated imports or paper Explanation of Benefits (EOB) statements from insurance payers. Gather front-desk or portal receipts for patient payments.
  • Verify and Match Claims: Match the incoming payment batch to the specific patient account, date of service, and claim number.
  • Enter Paid Amounts: Input the exact payment made by the insurance carrier or patient into the billing software.
  • Apply Adjustments and Write-Offs: Record contractual adjustments, deductible amounts, copays, and coinsurance based on the payer's allowed amounts.
  • Flag Denials and Short-Pays: Identify any zero-pay lines, denials, or underpayments using standardized reason codes, and route them to the denial management team.
  • Update Balances: Allow the system to calculate the remaining balance, shifting responsibility to a secondary insurance payer or the patient.
  • Reconcile Daily: Compare total posted payments in your software against actual bank deposits and remittance totals.

How to Post an Insurance Payment in SimplePractice [2026 Full Guide]

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How to post insurance payments in SimplePractice?

To post an insurance payment manually in SimplePractice, use the details from your Explanation of Benefits (EOB) or Electronic Remittance Advice (ERA) via the SimplePractice Support Center.

📅 Navigate to the Payment Screen

  • Go to the client's profile or open Insurance > Payments.
  • Click Add insurance payment.
  • Ensure the client's billing type is set to Insurance.

🗒 Enter Payment Details

  • Enter the Payment Date from the check or wire.
  • Select the Payment Method and enter the check or wire number.
  • Input the total Amount paid by the insurance company.

📊 Allocate Appointments

  • Filter by Date Range and client under All Appointments.
  • Enter the paid amount next to each specific appointment.
  • Calculate and enter any appropriate Write-Off amounts.
  • Confirm the total allocated amount matches the payment amount.
  • Click Save to update the claim status to paid.

How is insurance billed?

Insurance billing works by translating medical services into standardized codes, submitting a claim to your insurance company, and determining your final out-of-pocket cost.

Here are the main steps in the Medical Insurance Billing Process:

1. Receiving Care and Coding

  • Intake: You provide your insurance and personal information when you visit a doctor or hospital.
  • Medical Coding: The provider translates your diagnosis and treatments into standardized codes (like CPT and ICD-10 codes).

2. Submitting and Processing the Claim

  • Claim Creation: The office puts these codes and charges into a claim form.
  • Submission: The provider sends the claim electronically to your health insurance company.
  • Adjudication: The insurance company reviews the claim to see if the services are covered and medically necessary.

3. The Explanation of Benefits (EOB)

  • Reviewing the EOB: The insurance company sends you an Explanation of Benefits detailing what the doctor charged, what the insurance allowed or negotiated down, and what you owe.
  • Important Note: An EOB is not a bill. It shows your financial responsibility based on your plan.

4. Patient Billing and Payment

  • The Final Bill: The doctor's office sends you an invoice for your remaining balance after the insurance pays its share.
  • Patient Responsibility: You pay your share, which may include a fixed copay, coinsurance percentage, or your annual deductible.

What is the journal entry for insurance payments?

The journal entry for an insurance payment depends on whether you pay for future coverage in advance (prepaid) or pay for the current month's coverage as an immediate expense, as detailed by Accounting Coach.

1. Initial Payment for Future Coverage (Prepaid Insurance)

When you pay an insurance premium in advance for a policy covering multiple future months or a full year, you record it as an asset because the economic benefit is yet to come.

  • Debit: Prepaid Insurance (Asset increases)
  • Credit: Cash / Bank (Asset decreases)

Example: Paying $2,400 upfront for a 1-year policy:

  • Debit: Prepaid Insurance $2,400
  • Credit: Cash $2,400

2. Monthly Adjusting Entry (Amortization)

At the end of each month, you must record the portion of the insurance policy that has expired by shifting it from an asset to an expense.

  • Debit: Insurance Expense (Expense increases)
  • Credit: Prepaid Insurance (Asset decreases)

Example: Expensing one month ($200) of the annual policy:

  • Debit: Insurance Expense $200
  • Credit: Prepaid Insurance $200

3. Immediate Insurance Expense (Current Month Only)

If the payment covers only the current operating period and is consumed immediately, you can record it directly as an expense.

  • Debit: Insurance Expense (Expense increases)
  • Credit: Cash / Bank (Asset decreases)

How do you account for an insurance claim payout?

To account for an insurance claim payout, you record the initial loss, set up a receivable when the claim is approved, and log the cash deposit against that receivable or net it directly against repair expenses.

Recording the Loss and Payout

  • Record the asset loss: Debit a Loss/Damage account and credit the Asset account for the book value of the damaged item.
  • Setup a receivable: Debit Insurance Claim Receivable and credit a Gain/Recovery or income account once the payout amount is officially approved by the insurer.
  • Log the cash receipt: Debit your Bank Account and credit the Insurance Claim Receivable when the funds arrive.

Alternative Method (Expense Offsetting)

  • Net against repairs: Under full accrual accounting, you can net the insurance proceeds directly inside the same Expense/Repair account used to fix the damage rather than logging it as standalone revenue.
  • Separate operational costs: Keep ongoing maintenance or uninsured deductibles segregated from the reimbursed claim amounts in your ledger.

Guidance on proper procedures can also be reviewed via Grant Thornton's accounting considerations for insurance recoveries.

How are insurance claims paid?

Insurance claims are paid through a structured process where the insurer reviews the loss, calculates the payout minus your deductible, and sends funds via check, direct deposit, or payment directly to a service provider.

The Claims Payment Process

  • Filing the Claim: You report the incident and submit documentation (photos, police reports, or receipts) to your insurer.
  • Inspection and Assessment: An insurance adjuster evaluates the damage to determine if it is covered and how much it costs to repair or replace.
  • Calculating the Payout: Payouts are based on your policy limits and coverage type, such as Actual Cash Value (ACV), which subtracts depreciation for age and wear, or Replacement Cost Value (RCV), which covers today's cost for a new equivalent. Your policy deductible is subtracted from this total.
  • Issuing the Payment: Funds can be sent to you electronically or by check, or paid directly to an auto repair shop, contractor, or medical provider.

Common Ways Payouts Are Distributed

  • Multiple Checks: For property damage, the first check is often an initial advance. You can request more money later if hidden damage is found.
  • Joint Checks with Lenders: If you have a mortgage, home insurance checks for structural damage are often made out to both you and your mortgage lender to ensure repairs are completed.
  • Direct Vendor Payment: Auto or health insurance payments often go directly to the mechanic, hospital, or doctor.

You can learn more about standard procedures through MetLife or review consumer guidelines via the Consumer Financial Protection Bureau.