Why do I need medical practice accounting software?

Imagine that you’re buying a piece of equipment, and the vendor is asking for your YTD Profit & Loss Statement for financing the purchase.

How easily can you get this data from your accounting system?

Or, let’s say you need to apply for a business line of credit, and the lender needs a copy of your financial statements for the last two years.

Is this something your software can produce quickly and accurately?

These are just a few examples of why you need to have reliable, easy-to-use medical accounting software for your practice.

Not only does the right accounting software provide critical insight into the health of your business, but it also allows you to access your financial information in real-time – when you need it most.

Whether you’re reviewing quarterly numbers with your accountant, managing employee payroll, preparing for your annual business return, or making a major purchase, having immediate access to your financial records is crucial.

Additionally, maintaining good books and records can literally mean the difference between success and failure for a medical practice.

Ongoing expenses can get out of control fast. Without knowing how your cash flow is performing each month, it’s impossible to steer your business in the right direction.

And last but not least, if the success of your business isn’t reason enough, we should also mention that the IRS requires it. 

The IRS expects you to substantiate your tax deductions and provide reconciled receipts for your gross revenue. If you get audited, the IRS auditor will expect you to produce receipts and show proof for every tax deduction claimed on your tax return.

Without having a good accounting system, this will be an impossible task.

Ok… are you convinced yet?

Good! Now get rid of that Excel spreadsheet and let’s talk about what to look for in your next accounting software.

What features should you look for in your medical accounting software?

Running a business is hard. Running a medical practice can be even harder.

Which is why the number one factor you want to look for in an accounting software is that it’s easy-to-use.

You want to choose a software that you or your bookkeeper knows how to use from the inside out. Reconciling transactions should be a breeze, and pulling meaningful reports should be even easier.

Additionally, it should be equipped to handle the complexities that medical practices bring in terms of additional systems, HIPAA compliance, and more.

Here is a list of the must-have features to look for:

• It should be HIPAA compliant.
• It should be easy to contact Tech support – this is important!
• You should be able to manage your expenses on the go with a mobile App.
• You can track your mileage.
• It can sync with third-party health care apps (CRM, practice management, etc.).
• It should have the ability to invoice and receive payment.
• It should allow you to manage your payables and pay bills online.

In summary, it should be easy-to-use, have the ability to sync with the rest of your healthcare programs, and deliver clear and measurable results each month.

Which medical accounting software should I choose? 

While there are quite a few accounting software programs on the market, you really can’t go wrong with the most common one – Quickbooks.

And no – we don’t get anything for saying that!

In our accounting firm, we use Quickbooks for all of our physicians clients and think it does a great job.

From handling patient payments, to setting up your Chart of Accounts, to running payroll, Quickbooks really does make things run easier.

It’s super simple to automate tasks and simplify processes, meaning you can get back to running your practice quicker.

If you need help setting up your Chart of Accounts, implementing Quickbooks, or simply want someone to look over your accounting practices, you can reach out to us with your questions any time.

Simply head to our Meeting Page to book your complimentary first session.

In the meantime, you might enjoy our previous article on the effects of Biden taxes on high income earners.

Until next time!