accounting for medical practice

Are the books in your medical practice looking a bit under the weather? Keeping up with accounting can be a struggle for many clinics, particularly when it comes to a single practice with multiple locations. Adopting cloud-based accounting apps can get your books back on the road to recovery. Whether you’re just opening your doors or have been in practice for over 30 years with multiple locations, there’s always an opportunity for improvement with accounting for medical practices. Here are some things medical practices should consider for their back offices. 

Processes

Processes can make or break a medical practice. A lack of consistent accounting processes can have a direct, negative impact on cash flow. If you’re struggling to keep up or realizing that Excel spreadsheets just aren’t cutting it anymore, it’s time to find the process that’s right for your practice. However, it can be difficult to know where to start.

Top priority for medical practice accounting processes should be an integrated system across the practice—that includes everything from online scheduling and automated appointment reminders to online bill payment options and bookkeeping on the cloud. Giving your patients the ability to schedule and pay at their convenience not only provides a valuable service, but can also help to improve overall cash flow by reducing no-shows and late payments. A CPA, bookkeeper, or virtual CFO can assist you in establishing processes that automate many of the tasks your staff may currently perform manually. 

It’s also critical to ensure that processes are implemented and followed across the practice. When each office has its own way of doing things, it leads to financial headaches, increased costs, and also greater vulnerability to fraud and theft.

Accounts Payable

Opening and operating a medical practice comes with plenty of bills to pay. The cost for new equipment, technologies, invoices from suppliers, along with everyday expenses such as rent, communication, and utilities can lead to an inbox pile-up if you’re doing everything on paper. Utilizing a cloud-based accounting app to manage bill pay (we love Bill.com) will allow you to easily receive, track, approve, pay, and categorize bills. It’s critical to have a consistent approval process, and you’re more likely to stick with it if it’s automated. Bill.com makes it easy to gain the proper approvals and keep everything paid on time, as well as to track spending on a monthly, quarterly, and yearly basis. You also gain invaluable security measures that help to prevent theft from the outside and the inside.

Accounts Receivable 

The accounts receivable process can look very different depending on the practice type and nature of the business. Either way, there will be a lot going on here—billing patients directly, processing insurance payments, and tracking multiple physicians. Having everything organized on the cloud will help you track current and past-due receivables.

Payroll

A solid payroll processing app is absolutely crucial to keeping you on top of payroll and in compliance with all federal, state, and local regulations. Gusto gives business owners total control over the payroll process and all of the factors that come with staffing. Reduce the headache and countless hours filing payroll taxes, checking timecards, and managing employee benefits—Gusto does it all. 

Adoption

In order to keep your medical practice accounting books healthy, adoption is key. This is especially true for multi-location practices. Our team has experience working with medical practices to get all locations following consistent processes and using streamlined tools that enable clear financial oversight of the entire practice. 

If the books in your medical practice books are looking more ill than the patients you are seeing, it might be time for a hand in the accounting department. Send us a message to schedule a free accounting for medical practices consultation.