The Importance of Proactive Accounting for a Healthcare Office

Money is the lifeblood of any business, so it’s important for all business owners to stay on top of their finances, but it’s especially important for healthcare offices. Not only do you have more to keep track of in terms of changes with the law, filing claims with insurance, following up on denied claims, etc., you also have to follow the Generally Accepted Accounting Principles (GAAP) in order to avoid facing fines, fees, and (in extreme cases) criminal charges.

Here are some things you can do to stay on top of your healthcare office’s finances all year long to make sure you’re compliant with all the applicable regulations and ready for tax season.

Stay on Top of Your Revenue

It’s one thing to send out bills to patients, but it doesn’t end there. You then have to follow up with those bills and make sure they’ve been paid, and for healthcare offices, it gets even more complicated because you have to file claims with insurance companies. 

If a claim is denied, you then have to follow up on that claim to make sure you get paid. Even approved claims usually come with a copay, in which case you have to collect money from the patient, and then collect money from the insurance company. Yes, it’s more work, but it’s also essential for making sure you understand where your revenue is coming from and making sure you can afford to pay your own bills.

The fact that accounting for healthcare offices is so complicated and has so many moving parts is another big reason it’s so important to stay on top of your business’ finances. Make it part of your schedule to check in on your revenue on a regular basis (at least once a month, but preferably 2-4 times a month).

Stay on Top of Your Expenses

Just like you need to stay on top of your invoices to make sure you get paid for all the services you provide, it’s just as important for you to stay on top of your business’ bills to make sure you’re paying for everything you need. The last thing you need is to have your electricity or water shut off because you didn’t pay your bills and had lost track of them.

At the same time, staying on top of your expenses is essential to making sure your business is only paying for what it needs. If you’re paying a monthly subscription for a tool or software you never use, it’s time to cancel that subscription. If you’re paying for marketing or advertising that isn’t bringing in a return on that investment, it’s time to consider where that money would be better spent. No one likes to waste money, so stay on top of your business’ finances to make sure your business is only paying for what it uses.

As with your revenue, making a habit of proactively checking up on your expenses allows you to put a stop to any unnecessary expenses before they cost you a lot of money.

Reconcile Your Books with Your Bank Records

Keeping on top of your revenue means more than just making sure you get a check to cover each of your bills. You then need to follow up with the bank and make sure that deposit went through.

The same goes for keeping track of your expenses. Did all your expenses show up as a withdrawal from your bank account? Are there any unexplained withdrawals you should follow up with? Not only does this help you make sure you stay compliant, it can also help protect you against the worst damages of fraud by putting a stop to it as soon as it happens.

Whether you need help making sure your healthcare office is compliant with the GAAP, or you just want someone to take the task off your plate so you can focus on your patients, I can help with one of my healthcare accounting services.