Bookkeeping for medical or dental practices can be an intricate process that requires a lot of attention to detail. Falling behind or putting it off until the end of the year can yield disastrous results.
That’s why it’s important to place special focus on healthy bookkeeping practices consistently — all year long.
Here are some helpful bookkeeping tips for healthcare practices. They can save your practice a ton of time and help you provide your CPA and board with timely, accurate data.
Record All Expenses
To make sure your books are all in order for the end of the year (and year-round), don’t lapse on recording your income and expenses.
Consistently recording all your practice’s expenses in your bookkeeping or accounting software on a rolling basis will ensure your numbers are correct. Plus, your CPA can track down any tax-deductible expenses easily.
Pay Attention to Details
Don’t rely on bank statements to provide the whole story when it comes to bookkeeping for your dental or medical practice — it’s all about the details.
Keep detailed records and receipts in a dedicated space. By doing so, you can find information quickly and make everything easier in the long run for both your healthcare practice and your CPA.
Track All Locations Individually
If your practice has multiple locations, it might seem easier to consolidate their information when recording financial performances. However, you should review each individual site instead of lumping them together.
When you view your locations as discrete units, you can compare how each one is doing and identify areas needing improvement.
One of the most essential bookkeeping tips for healthcare practices is to bill promptly.
Remember: Billing promptly for each procedure and patient using the proper codes and terminology helps your practice avoid payment receipt delays or accidental undercharges. Run regular audits and accounts receivable aging reports so your practice can see and pursue all overdue accounts.
Consider automating your billing system as much as possible so that invoices go out immediately — which saves you the trouble later. Following up on late accounts and keeping up with invoices can also really boost your practice’s long-term success.
[Related: The Importance of Healthcare Accounting]
Consider Outsourcing Bookkeeping
You might outsource your bookkeeping and other controller services to streamline your healthcare practice. These professionals know how to track all your financial data, as well as avoid potential fees and obstacles along the way.
Professional support can also help you give your CPA accurate, organized and easy-to-review financial information at year’s end. You’ll all feel more confident, and your practice’s taxes should be a breeze for everyone involved.
Plus, an outsourced bookkeeper can complete financial requests (including cash flow forecasts) from your board.
Make sustainability a top priority at your medical or dental practice.
Going paperless isn’t just an eco-friendly choice. It can help you stay organized and save you considerable money on paper and ink, too. Here are a few tips to ease communication and reduce your reliance on physical document storage:
- Issue electronic invoices
- Store important documents in the cloud
- Use collaborative software
Keep Track of Equipment
CPAs consider certain physical items you use at your healthcare practice capital assets. These items/assets include those items that cost more than $2,500, including major medical equipment like blood pressure monitors, X-ray machines, and other diagnostic equipment.
Make sure your books track the depreciation of these assets, or the value they lose each year. You’ll lower your taxes as well as know what you need to replace.
Work With a Healthcare CPA Like Martin, Bircher, Thompson PC
Follow these helpful and healthy bookkeeping tips for healthcare practices to keep your books accurate and easy to navigate year-round.
If you’d like help with organizing your medical or dental practice’s finances, Martin Bircher Thompson is here. We’ll take care of the details so that you can focus on what matters most: caring for your patients and growing your practice.
Let’s get started!