Accounting Service for Medical Practices Ben Johnson, CPA

Generally, the most significant medical practice accounting challenges stem from the healthcare billing process. Most businesses provide a product or service to a customer, then receive a predictable payment from them in exchange. Now you have the basics to get your medical practice bookkeeping off to a good start. Whether you handle bookkeeping and medical billing on your own or outsource it to a professional, make sure you’re giving it the attention it deserves. When you stay on top of your books, you’ll have real-time insight into your practice’s finances and the information you need to make more informed business decisions.

• Apply for financing, track your business cashflow, and more with a single lendio account.
• As an integrative health professional, it is imperative that you know how the health of your business is doing at all times.
• Both lenders and investors will want to see that you know how to organize your financials and that your business is healthy (and growing).
• When you stay on top of your books, you’ll have real-time insight into your practice’s finances and the information you need to make more informed business decisions.
• He is great at explaining technical subjects such as tax issues specific to the timber industry in plain and simple language that I can understand.
• Medical practices sometimes leave money on the table as their in-house teams lack the expertise or tools to create watertight bookkeeping.

Each one of these business types has different requirements for paying taxes. Depending on your business model, sometimes there can be significant benefits to using one type of business entity vs another. Ben Johnson is very knowledgeable of each of the business types a medical practice has available to them and will be able to tell you which type makes the most sense for your accounting for medical practices business. Neolytix offers special customized, transparent accounting bundles that are tailored specifically to small and medium medical practices. Setting up a Chart of Accounts that enables you to accurately classify income and expenses and report on profitability is key. Medical practices have specific income, expenses and liabilities which need to be classified correctly.

Hire the Best Financial Analyst, Accountant & CFO

Gone are the days of old accounting ideals like hourly billing, in-office accountants, and a great lack of communication. Here are the days of remote and cloud-based accounting, value-based pricing, and working hand-in-hand with clients to promote growth and a good understanding of your finances. Most charts of accounts that are pre-loaded into accounting software or that you can find online are for e-commerce purposes or may apply best to something like a landscaping business. So unless you are cutting grass in your off time, these don’t bode well for bookkeeping in your optometric practice. In addition to working with a skilled medical billing team to speed up collections, work with your accountant or bookkeeper to prepare cash flow forecasts.

When you went to medical school, accounting probably wasn’t part of the curriculum. But now, as the owner of a medical practice, it’s one of many business functions you need to figure out. While setting up your chart of accounts is relatively easy, there are several common mistakes often made along the way.

Cash flow suffers

Most accounting software solutions out there offer a way to create a chart of accounts. Medical practices sometimes leave money on the table as their in-house teams lack the expertise or tools to create watertight bookkeeping. In addition, especially now, with employee turnover skyrocketing in the USA, practices find it hard to find and retain accounting staff over the long term. Resignations lead to disruptions and temporary hick-ups that are eliminated when opting to outsource the accounting function to a third party. Many practices sell goods – skincare products, medical aids, educational materials and even food.