Accounting
is a challenging task in healthcare as it is a rapidly changing
industry which is constantly striving to streamline their accounting
and finance processes. There are a lot of issues stemming from
inadequate accounting processes that can block the growth of medical
practices. Hence, it is crucial to give accounting process the
attention it deserves. Let us learn about some tips that can help
medical practitioners in achieving an efficient accounting process.
Tips for Doctors to Streamline Their Accounting Process
1. Adopting the Latest Technology
With
technology riding a growth wave in almost all the industries,
healthcare practitioners must also invest in the same so as to gain
more efficiency and enhance growth. Accounting software prevalent in
the market today are capable of easing the complex workload of
businesses and help in streamlining the entire financial process.
As
per the study of Intacct, following are some pain points that
healthcare companies faced before adopting their accounting software
-
• Limited
access to reports and information to drive decision-making (64%)
• Inefficiencies
due to a reliance on spreadsheets to support financial processes and
reporting (55%)
• Difficulty
in adapting their existing financial software to new business
requirements (36%)
• Excessive
manual data entry/re-entry (36%)
• Inadequate
controls around their financial processes (27%)
Hence,
implementing a suitable cloud-based software, like Intacct, for your
accounting needs can help ease the above-mentioned problems for your
medical practice.
2. Timely Collection of Taxes
For
proper financial management, it is advised to collect taxes whenever
they are applicable. Whether it is applicable when employee payrolls
are generated or at the point of sale, avoid delaying the collection
of taxes until the financial year-end as it makes the process
complicated. There may be many reasons like gaining access to
additional money temporarily or saving time which may tempt you to
defer tax payments, but this only leads to erroneous financial
management in the long run.
3. Stay on Top of Financial Documents
As
you scale your business and your healthcare practice grows, financial
management process becomes more complex to deal with. In this
scenario, staying updated with your cash flow statements, balance
sheets, and profit & loss statements can help you a lot in
maintaining the financial health of your medical business. In order
to achieve the same, you can also consider hiring a third-party
company that can manage these financial documents for you.
4. Keep Detailed Records
For
achieving decent financial health, it is crucial that you keep a
strict check on money that is going in and out of your business. For
ensuring the same, keep a detailed record of your cash and non-cash
transactions. Regular reconciliation of bank statements can help to
track the non-cash transactions and the cash transactions can be
monitored by maintaining receipts, preferably sorted according to
months. You can also maintain a cloud-based copy of this data to
ensure that the same is available at all times for processing.
5. Hiring an Outsourcing Company
When
it comes to accounting, maintaining everything on your own may seem
easy in the beginning but the same can prove to be troublesome as
your medical practice grows. Taking help of a third-party accounting
company not only takes the burden of accounting off your shoulders
but also ensures that your financial processes are managed by expert
accountants for doctors that
are proficient in what they do.
This will not only save you the cost
of hiring in-house accounting professionals but will also catalyze
your business growth as you will have more time to think about and
implement growth strategies.
The
nature of the healthcare industry is such that it requires diligent
efforts to ensure growth. Hence, as a doctor or a medical
practitioner, if you have to focus on growth, it is important that
your financial department is streamlined. You can follow the tips
mentioned above to ensure the same. Also, if you are looking for an
outsourcing company to help you manage your accounting tasks, get in
touch with Cogneesol.
We are a well-established and certified company
providing back-office accounting services like bookkeeping, financial
reporting, payroll processing, and much more. Contact now, at +1
646-688-2821 or email us at info@cogneesol.com.
