Bookkeeping for Medical Practices

Bookkeeping for medical practices involves keeping accurate financial records of income and expenses. Bookkeeping for medical practices includes tracking patient billing and payments and expenses such as supplies, staff salaries, and rent. It’s important to keep accurate records to ensure that the practice is financially viable and complies with tax laws. Many medical practices use specialized software to track their financial information, and some may hire a bookkeeper or accountant to handle their bookkeeping needs.

Bookkeeping Solutions for Medical Practices

There are several bookkeeping solutions available for medical practices. The following are the best bookkeeping solutions for medical:

Specialized Medical Billing and Practice Management Software

These software solutions are designed specifically for the medical industry and typically include features such as electronic claims submission, appointment scheduling, and patient billing.

Online Bookkeeping Services

Bookkeeping Services allow medical practices to outsource their bookkeeping needs to a team of professionals who handle all aspects of bookkeeping remotely.

Cloud-Based Accounting Software

Xero, QuickBooks Online, and Zoho Books are some of the cloud-based accounting software solutions. They allow medical practices to access and update their financial information from anywhere using an internet connection.

Excel or Google Sheets

Medical practices can also use excel or google sheets to track their financial information. They can use add-ons like “budget templates” to make it more comprehensive.

Hybrid Solutions

Some practices might use a combination of different solutions, such as specialized medical billing software to handle patient billing and claims, while using a cloud-based accounting software like QuickBooks to track expenses and generate financial reports.

Ultimately, the best bookkeeping solutions for a medical practice will depend on the practice’s specific needs and preferences. It’s important to carefully evaluate different solutions’ features and costs before deciding.

Online Bookkeeping Services for Medical Practices

Online bookkeeping services are a popular option for medical practices looking to outsource their bookkeeping needs. These services typically provide a team of professionals who handle all aspects of bookkeeping, including:

1. Recording financial transactions: The bookkeeping team will record all financial transactions, such as patient billing and payments, vendor invoices, and employee payroll.
2. Generating financial statements: The bookkeeping team will generate financial statements such as income statements, balance sheets, and cash flow statements.
3. Reconciling bank and credit card statements: The bookkeeping team will reconcile bank and credit card statements to make sure that all transactions are recorded accurately.
4. Managing Accounts payable and receivable: The bookkeeping team will handle all aspects of accounts payable and receivable, including sending invoices, tracking payments, and following up on overdue accounts.
5. Providing financial advice: The bookkeeping team can advise the practice on budgeting, forecasting, and tax planning issues.
6. Compliances: The bookkeeping team will also ensure that the practice complies with state and federal tax laws and regulations.

Online bookkeeping services can be a cost-effective solution for medical practices that do not have the resources to hire a full-time bookkeeper. These services usually offer flexible pricing plans and can be customized specifically to meet the needs of the medical practice.

Benefits of Bookkeeping Services for Medical

There are several benefits of using bookkeeping services for medical practices, including:

Accurate practice financial reports

Bookkeeping services provide accurate and timely financial reports and information essential for making sound business decisions.

Compliance 

Bookkeeping services ensure that the practice complies with state and federal tax laws and regulations, which can help avoid costly fines or penalties.

Time-saving

Outsourcing bookkeeping to a professional service can save the practice’s staff time, allowing them to focus on providing medical services.

Cost-effective

Hiring a bookkeeping service can be a cost-effective solution for small or start-up medical practices that do not have the resources to hire a full-time bookkeeper.

Expertise

Bookkeeping services employ experts in their field with the knowledge, experience, and software to handle the medical practice’s bookkeeping needs.

Flexibility

Many bookkeeping services offer flexible pricing plans and are specifically designed to meet the needs of the medical practice.

Reporting and Analytics

Bookkeeping service providers can help you with financial reporting and analytics, which can help to identify trends and make strategic business decisions.

Scalability 

As your practice grows, bookkeeping services can scale up or down based on your needs, providing the necessary support and resources to manage your practice’s finances.

Overall, using bookkeeping services for a medical practice can provide accurate and timely financial information, help them avoid costly fines or penalties, save time, and be cost-effective. It can also provide expert support and scalability for the practice.

Best Bookkeeping Services for Medical Practices

Several bookkeeping services are well-suited for medical practices. Some of the best options include:

NumberSquad

NumberSquad is a cloud-based bookkeeping service that provides a team of professional bookkeepers to handle all aspects of bookkeeping, such as recording financial transactions, generating financial statements, reconciling bank and credit card statements, and managing accounts payable receivable. NumberSquad also provides tax filing and payroll processing services for medical practices, which can save time and money.

Medfin

Medfin is a specialized medical billing and practice management software that offers bookkeeping services. It provides features such as electronic claims submission, appointment scheduling, patient billing, financial reporting, budgeting, and forecasting. However, bookkeeping services can be more efficient if received separately from the other services.

Medbooks

Medbooks offers medical billing, appointment scheduling, and financial reporting features.

Bench

Bench is an online bookkeeping service that provides a team of professional bookkeepers to handle all aspects of bookkeeping for small businesses, including medical practices. 

Bookkeeping Service Pricing for Medical Practices

The cost of bookkeeping services for medical practices can vary depending on the services offered and the size of the practice. Some bookkeeping services charge an hourly rate, while others offer monthly bookkeeping prices.

Here are a few examples of the cost of bookkeeping services for medical practices:

1. NumberSquad: NumberSquad charges a monthly fee that ranges from $145 to $395 per month, depending on the services needed. Transparent and fair pricing designed for medical practices based on annual sales.
2. Medfin: Medfin’s pricing varies depending on the size and complexity of the practice, but it typically ranges from $500 to $2000 per month.
3. Medbooks: Medbooks charges a monthly fee that ranges from $200 to $1000 per month, depending on the services needed.
4. Bench: Bench charges a monthly fee that ranges from $249 to $399 per month.

It’s important to note that some bookkeeping services may charge additional fees for services such as tax preparation or financial consulting. It’s also important to consider that outsourcing bookkeeping to a professional service can save time and money in the long run by avoiding mistakes, ensuring compliance with tax laws, and providing accurate financial information to make better business decisions.

Chart of Accounts for Medical

A chart of accounts lists all the financial accounts that a medical practice uses to record transactions. The chart of accounts typically includes categories such as:

1. Accounts Receivable: This account tracks money that patients owe the practice for services provided.
2. Medical Supplies: This account tracks the cost of medical supplies used by the practice.
3. Salaries and Wages: This account tracks the cost of paying staff members of the practice.
4. Rent or Mortgage: This account tracks the practice’s office space cost.
5. Insurance: This account tracks the cost of insurance for the practice, such as liability insurance.
6. Taxes: This account tracks the costs of taxes, such as sales and payroll taxes.
7. Utilities: This account follows the cost of utility bills, such as electricity and internet.
8. Professional Fees: This account tracks the cost of professional services such as legal, accounting, and consulting fees

These are just a few examples of the types of accounts that may be included in a medical practice’s chart of accounts.