Features include using it for scheduling, storing electronic medical records and assessing imaging. Your primary focus as a physician is patient care, but it makes dollars and sense to pay special attention to accounting for medical practices. In addition to being a physician, you’re also an entrepreneur tasked with running a profitable medical practice. For this method, it’s vital to prepare for large quarterly expenses, such as malpractice insurance.

From managing day-to-day accounting and bookkeeping tasks to providing financial updates that will help eliminate extraneous expenses, shrink costs, and maximize profits, we can guide the way. We’ll also design a proactive tax planning strategy and will be in touch with you throughout the year to keep tax liabilities in check. Another potential alternative to health care accounting software is a medical billing service.

Medical Office Policies & Procedures Information

This Accounting Handbook for Medical Practices gives physicians a valuable, usable, and readable journey through the proper processes of financial accounting and related issues. Sample charts, accounting formulas, and informative case studies enhance each chapter. There is no reason to manually input debits and credits into a spreadsheet anymore. Bookkeeping software like QuickBooks by Intuit not only gives individuals a way to input debits and credits automatically but also allows for customization. These features can be used to make sure purchases and payments are categorized properly. You may still need to acquire a few tools for whatever your PMS can’t help you with, such as accounting and payroll services.

Keeping tax documents readily accessible is also a good idea, in case last year’s tax return is needed for review. While this may not be as frequently needed as the documents listed above, it is a good practice to know where they are. If you have contracts with external vendors, it’s important that your accounting advisory team knows about accounting for medical practices incoming invoices so that they can look for opportunities to cut costs without reducing quality. Whatever you can do to optimize your accounting from the start will pay dividends indefinitely, so be as diligent as much as possible from day one. Preventing accounting problems from occurring is much more effective than fixing them later.

Choose the Best Method of Accounting for Medical Practices

Physicians usually aren’t accounting experts, and it’s easy to make a mess of your books and overlook tax planning strategies that can save you money. Many doctors, dentists and other healthcare providers struggle to keep up with the challenges of running their practice. As a New York City CPA firm who has worked with many different healthcare industry clients, Mark E. Feinsot, CPA delivers accounting and bookkeeping services that will help a medical office run more smoothly.

We can also provide you with an annual tax strategy plan that focuses on saving you the maximum in taxes on an ongoing basis. Medical practices deal with much more serious issues than accounting and bookkeeping, but managing these tasks is still essential to their success. Provides the accounting and tax services your medical practice needs to run smoothly so you can concentrate on running daily operations. For accounting purposes, each patient that visits a doctor’s office can be viewed as a customer. The office needs to collect several important pieces of information from each customer to ensure the visit is billed properly.

Accounting Services

Hidden costs can sneak up on you with cash basis accounting if you’re not careful in planning ahead. Not having separate accounts and credit cards for personal and professional expenses is a common mistake in medical practice management. The co-mingling of business and personal expenses will put a strain on relationships with business partners. It also puts the company at risk of an IRS audit which makes obtaining a business loan or line of credit difficult. There is a lot of documentation required when forming a medical practice, and the records grow as you conduct business. Your accounting advisors will need access to much of that financial paperwork, and it is up to you to set them up for success.

• Make sure you investigate the different options to make an informed decision based on what option best equips you to care for your patients.
• We’ll also design a proactive tax planning strategy and will be in touch with you throughout the year to keep tax liabilities in check.
• This may take some patience and time, but once it is complete you will have gained a secure location for all your documents.
• In contrast, with accrual accounting, revenues are recognized as soon as they are earned and expenses as they are incurred – even if the actual payments are made later.
• We will do everything we can to equip you properly for any financial requirement.
• Working with an accounting services provider can help you streamline crucial accounting decisions right from the start of your practice.