Let’s start with an honest self-assessment. On a scale of 1-10, how comprehensive and up to date are your bookkeeping processes? If you’re not sure or feel your current process is lacking, you’re not alone. All too often, practices are “flying blind” because they are not leveraging the power of solid bookkeeping.
Working with an experienced bookkeeper who specializes in the medical field is your first step to gaining clarity in your business. It allows you to manage the day-to-day finances more effectively while also positions you to make better decisions around the future of your practice.
Let’s take a look at three specific ways accurate bookkeeping can benefit your practice:
1) Help you gain a true understanding of your income and expenses
It all starts with the basics of money in and money out. Solid bookkeeping plays a starring role in helping clarify the specific line items that contribute to your practice’s profitability. It’s a snapshot of your current financial state and it allows you to make more informed decisions throughout the year.
Am I overspending in certain areas? Are there areas where I should be investing more to grow your practice? The answer to these question lies in understanding your profit and loss statement.
2) Optimizing collections and cash flow
You’ve probably heard that cash flow is the lifeblood of any business, and it’s true. Without adequate cash on hand, it becomes very difficult to maintain healthy staffing levels and deliver the care you’d like for your patients. Whenever we detect a cashflow problem within a medical practice, it can almost always be tracked back to billing and/or collection issues.
A solid collection process starts with a well-defined credit policy. This policy clearly and concisely educates your staff on the policy specifics and what processes must be followed and when. For example, the document should define payment timing for both insurance and self-pay patients, define “past due,” and specifically outline your collections process (the type and frequency of notices, escalation process for non-payers, etc.)
3) Forecasting for Future Growth
Once you have a clear view of your ongoing income and expenses, as well as strong cashflow, now you can start thinking a little bigger picture. What are realistic growth goals for my practice? What is the most strategic way to increase both revenue and profitability?
Having accurate numbers allows you to forecast your financials – testing a variety of “what if” scenarios that can be extremely helpful in your decision making. We’ve found that this activity is often very empowering for practice owners who feel a greater sense of control, a feeling of running their practice, rather than their practice running them!
As you can see, there are several ways a specialized bookkeeper can add needed clarity to your practice. If you’d like to dig into any of these topics on more detail, we’re here for you.
We specialize in helping you expertly manage your bookkeeping, payroll, and controller tasks so you can focus on your top priority, your patients!
If you’re looking to increase both the revenues and profitability of your medical practice, don’t hesitate to reach out at 844-424-9637.
For a Limited Time, Get Our Free Guide: 7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
LET US KNOW WHERE WE SHOULD WE SEND YOUR FREE GUIDE!
7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
There’s no denying it. Creating a thriving practice is about much more than practicing medicine!
Topping the list of “other” priorities is your practice’s financial management. In this short guide, the experts at STAC Bizness Solutions outline 7 financial best practices that differentiate struggling practices from those which are highly profitable and experiencing healthy levels of growth.