Complex bookkeeping needs may exist in healthcare and medical practices. From dealing with insurance and third-party billing firms to submitting financial reports for your board, medical practices and physicians' offices need a unique understanding of bookkeeping. Here's how you may enhance cash flow while simultaneously delivering important, up-to-date information to your board and CPA.
Taxes must be deducted at the point of sale or throughout the payroll generating process. While it may be tempting to postpone this operation from time to time in order to save time or get temporary access to more cash, the bigger the gap between the transaction and accounting, the more likely a mistake will be made. If the practice pays its taxes now, it will avoid a large lump sum tax needed at the end of the year as well as late tax penalties.
Make a plan for your profit and loss statements.
Make this the one notion from huge organizations that your practice embraces. Reviewing the practice's profit and loss records on a regular basis is a highly effective method for assessing its overall financial status. Profit and loss statements, in addition to checking your daily records, offer you an overview of patient flow, a broad idea of where money may be invested in the company, and other information (and highlight errors that should be corrected).
Don't let bills pile up.
While it may appear straightforward, many medical practices struggle to keep billing under control. In the medical sector, making money is crucial. To begin, you must automate as much of the process as feasible. Having a system that can create and distribute bills automatically will save the practice's staff a substantial amount of time and effort. Following that, it is vital to maintain a tight check on past-due payments in order to avoid underpayment of work.
Incorporate current technologies.
Due to a lack of specialized IT staff and resources, medical offices may be hesitant to adopt trendy technology such as "the Cloud," but they should think about it carefully. The practice would be able to save its data in a centralized location on the Cloud, accessible from any computer on the planet. Because there would be no need to transfer paper and just one location from which to collect documents, the accountant's job would be much simplified.
Keep meticulous records.
Bank statements only go so far in terms of showing where money has entered and exited an account; keeping more detailed records can allow you to find information faster. Receipts should be stored in a separate folder and, if possible, scanned into a digital file to be delivered to the office's accountant later. The easier you can make their job, the better the results for your firm will be.
To put it another way, the easier you make your accountant's work, the better the results you'll get. It may be difficult for a small business, such as a medical practice, to keep extensive, correct records, but the alternative—having to rush to gather papers when they're needed—will be far more time-consuming in the long run.