Accounting for Medical Practices: Tips and Best Practices Bench Accounting

Our Boca Raton, FL CPA firm is experienced in working with healthcare professionals like eye doctors, chiropractors, veterinarians, and others to handle their accounting and reduce their tax obligations. We’ll stay on top of your finances and provide detailed reports that will shed light on how to reduce costs and grow your business. To decrease your tax burden and maximize profits, we’ll develop a comprehensive strategy and adjust it as your practice grows. With us on your team, you’ll always know where your medical practice stands financially and be free to provide the best care possible to your patients.

As a medical professional, your top priority is patient care, but that doesn’t mean your practice’s accounting and financial needs can be put on life support. In order for a healthcare practice to thrive, appropriate accounting procedures must be put in place. That way, the practice owner can know where they stand financially at all times. Most medical practices seem to overlook these statements due to a less complex business model.

Securely Send a Payment

We study and interpret your financial data to determine what it’s telling us about your practice and how to make adjustments that will improve your bottom line. We look for ways to eliminate unnecessary costs, utilize technologies to track expenses, simplify accounting procedures, and tighten internal controls. More importantly, while we’re monitoring your finances, you’ll be free to focus on patient care, new services, and other core medical practice issues.

• For U.S.-based companies, following Generally Accepted Accounting Principles is recommended for reconciling your business, meaning that double-entry accounting is the best approach.
• However, we can also make accrual adjustments like tracking accounts receivable and accounts payable with our specialized accounting add-on.
• Discover financial peace of mind with Magnum’s integrated medical practice CPA services.
• These are resources available to the business that provide economic value in the present or future.

We understand that you love caring for your patients but may not feel the same way about your bookkeeping. That’s why we offer medical practice accounting solutions that allow you to spend less time worrying about financial data and more time helping your patients. We’ll gladly take bookkeeping, payroll, and other time-consuming tasks off your hands. We also offer practice management solutions that will increase productivity, monitor cash flow more effectively, and improve financial controls.

Join over 140,000 fellow entrepreneurs who receive expert advice for their small business finances

Customer small business financing solutions delivered through a single, online application. Too often, doctors and dentists use their practice as a personal checkbook, running car leases, family vacations retail accounting and other personal expenses through the practice. Sign up for an initial consultation and you’ll receive a free copy of our ebook, “5 Common and Costly Payroll Errors and How to Avoid Making Them”.

Accounting for medical practices involves many more moving parts than accounting for most other businesses. As a result, it’s more important than usual that you set up systems to keep everything organized and running smoothly as soon as possible. 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.

Tax Briefs

If you pay $30 per overdraft and it happens twice a month, the loss is more than $700 in a year. While banks have done much to improve real-time https://www.harlemworldmagazine.com/retail-accounting-why-is-it-essential-for-inventory-management/ transaction data, they still are not perfect. Payments can sometimes take days, depending on the size and time of the initial requests.

Provides the accounting and tax services your medical practice needs to run smoothly so you can concentrate on running daily operations. The business operations of professional services providers—both individuals and firms—are more alike than they are different. The average CPA firm can handle basic small business accounting and tax services. However, if they’ve never worked with a busy medical practice before, they may not be able to develop effective medical practice accounting solutions. As a result, healthcare professionals are often unprepared to manage their company’s accounting and tax responsibilities. To make matters worse, the unique nature of the healthcare industry creates financial issues beyond what most business owners face.

CPA Accounting Services for Doctors

But the right accounting advisors can help guide you, allowing you to focus on the work you enjoy while your team builds a solid accounting foundation. This expedites the process of gaining access to important information quickly and efficiently, minimizing chains of unnecessary communication. And so, what we call “The Great Gather” begins, the process of finding all the materials that your accounting advisor will need to do their job well. Gathering all this documentation can be challenging for some practice owners, particularly if they have not been organized throughout the process of developing their business.

• Send Us Files Securely Use our secure file sharing tool to send files to our CPA firm.
• As your medical CPA firm, we’ll do more than provide top-notch accounting services and a proactive tax plan, we’ll become your trusted resource for financial advice.
• There is no reason to isolate different elements of your financial structure in different software or services.
• The cash basis of accounting involves recognizing revenues when you receive them and expenses when you pay them.
• However, when it comes to medical practices, the first and most important step is to familiarize yourself with the law of the land.
• We aim to make the complex understandable and provide you with valuable insight.