Health care Accounting vs. General Accounting

Healthcare accounting is quite similar to the accounting of other types of businesses. As with all accounts, your healthcare account will be audited by generally accepted accounting principles (GAAP) and industry standards.

In addition to the usual filing procedures, there are other challenges associated with keeping track of your healthcare practice’s finances and generating financial reports.

Financial in healthcare:

Healthcare accounting gives practice decision-makers the information they need to make financial decisions. Just checking the bank account for money is inefficient for a successful medical practice. Adding healthcare accounting to your toolbox is a great way to fulfil your fiduciary duty as a practice owner to keep your finances in order.

Banks consider credit applications based on timely and accurate financial information for your healthcare firm. Financial data also helps financial advisors calculate retirement savings based on long-term goals. Healthcare finances allow you to make informed financial decisions for your firm, much like an X-ray can show you where a bone is broken.

Maintaining HIPAA Compliance

Other than precise financial accounts, healthcare accounting includes other unusual characteristics.

If healthcare practitioners must be HIPAA-compliant, so must their accounting records. Despite being an expert in your medical field and HIPAA issues, your extensive medical studies may not have prepared you to handle the nuanced language and details of HIPAA-compliant accounting. A healthcare business account CPA can help.

Interactive accountants understand healthcare accounting methods. Interactive Accountants’ CPAs can help your practice comply with HIPAA accounting record rules.

KPIs and Healthcare Accounting:

Healthcare accounting focuses on key performance indicators, unlike corporate or personal accounting. Business owners can evaluate their practice’s performance by setting and tracking KPIs.
Healthcare KPIs include:

• Per-patient billing average.
• Ratio of staff to patients.
• Patient room turnover.
• Overall patient satisfaction.
• Patient monitoring.
• Cost of staff per hour.
• Patients wait.

Interactive Accountants provides healthcare clients with KPIs and monitoring guidance. In this manner, medical business owners can measure non-financial healthcare accounting trends.

Understanding your practice from a different perspective is always valuable. Key performance indicators vary by title. Doctors, dentists, chiropractors, and other healthcare practitioners have various KPIs. Contact Interactive Accountants before tracking and reporting KPIs.

Healthcare Bookkeeping:

To protect your practice’s cash flow, we consider collection cycles while bookkeeping for healthcare professionals. Having a clear view of bank accounts, accounts receivable, and accounts payable gives you a healthy record-keeping procedure and peace of mind.

Healthcare practices are generally partnerships with many owners. If so, your bookkeeping must reflect this. Interactive Accountants’ cloud-based accounting solution can classify accounting data by owner and offer financials that indicate the practice’s profit and loss by owner. This essential service and resource help multi-owner medical businesses understand owner profits and losses.

Related Topic: Bookkeeping for Medical Practices

Healthcare tax filing

As a healthcare professional, you don’t have time to keep up with changing tax regulations while still updating insurance, treatments, and other speciality issues. Interactive Accountants’ tax team handles healthcare tax filing and deductions specifically.

Our CPAs must complete 40 hours of tax practice-related continuing education each year. Our enrolled agents also complete 20 hours of continuing education each year to stay abreast of new healthcare tax laws that affect you and your business.

Every quarter, we assess our clients’ tax positions and discuss planning options. Working with our specialised CPAs makes addressing business and personal adjustments easy—we include the best tax deductions or credits available under current legislation.

Interactive accountants always anticipate tax issues. The best choice for your medical practice is to hire an accountant who has expertise dealing with doctors, dentists, chiropractors, and other healthcare professionals to produce your tax records.