Healthcare practices should record insurance and patient payments correctly, track supplies and equipment, reconcile merchant accounts and keep payroll clean, so profit by practice is clear. Never put patient health details in your bookkeeping files.
1What makes practices different
Practices receive money from several sources: patient payments, insurance payments and card processors. Deposits often combine several payments and fees, which makes reconciling harder than in a simple business.
2What to track
- Insurance payments and patient payments separately
- Merchant processing fees
- Medical or dental supplies and lab costs
- Equipment purchases and financing
- Payroll for providers and staff
- Rent, software and continuing education
3Reconciling deposits
Match each deposit to the payments it contains. Record processor fees as expenses instead of netting them out of income, so reports show true revenue.
Bookkeeping needs totals and categories, not patient details. Keep patient health information out of accounting files.
4Owner and provider pay
Owner draws, provider compensation and distributions need clear rules so profit is accurate. Your CPA can advise on structure, and we keep the records consistent.
5Reports that help
Monthly profit and loss, revenue by service type and expense trends help you see which services earn the most and where costs are creeping up.
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