Leichter Accounting Services

CPA Firm for Mental Health Professionals

How Proper Accounting Benefits Your Mission

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by

David Leichter
in

Medical practices, like any other business, need proper accounting practices in place in order to be successful and thrive over the long term. 

In fact, not doing your due diligence when it comes to your accounting can cause your practice to fail financially. Taking the time to optimize your practice’s accounting leads to:

  • More accurate financial reporting
  • Improved decision-making
  • Full compliance with regulations
  • Better communication with stakeholders
  • Increased efficiency 

In this article, we will take a closer look at each of the benefits of planning for and incorporating proper accounting in your practice. 

By the end, we hope you’ll realize why setting aside valuable time to optimize your accounting practices is not only beneficial to your medical practice but also paramount to your continued success and pursuit of your mission.

Benefits of Proper Accounting 

Accurate Financial Reporting

Every medical practice knows the importance of keeping accurate records. Without accurate records, how would you keep track of your patients, their medical histories, and prescription information? 

With that in mind, your practice also needs to keep track of another essential piece – financial records. 

Keeping detailed and accurate financial records lets you track your revenue and expenses over time. It also helps you monitor your cash flow and prepare financial statements that comply with accounting standards. 

Improved Decision Making

As your accounting practice grows and you gain a more clear picture of your finances, you’ll be able to make better decisions.

A detailed and readily accessible view of your finances allows you to:

  • Identify areas where you are overspending
  • Track which services are generating the most revenue
  • Analyze trends over time to help you better plan for the future 

Good accounting and financial foresight will allow you to quickly and efficiently pivot should a problem arise. It also allows your medical practice to optimize its day-to-day operations and find what works best for you.

Compliance with Regulations

One of the biggest factors every medical practice has to consider as they conduct their operations is their continued compliance with regulations. On a daily basis, you have to ensure you are in compliance with HIPAA, OSHA, IRS and other state-specific requirements. (Further reading can be found here and here.)

Luckily, with proper accounting, you can ensure you are in compliance with all regulations applicable to your practice. You’ll avoid costly penalties and other legal issues that could hinder the success of your medical practice. 

Better Communication with Stakeholders 

With up-to-date and accurate financial information being made readily available you can be straightforward, direct, and transparent with investors, lenders, or stakeholders regarding your finances. 

Having the ability to provide your investors with reports and financial statements that paint a clear picture of your practice’s financial health enables you to build trust and confidence in your business. Like you, they’ll need this information to make informed decisions about their involvement in your practice. 

Increased Efficiency 

Lastly, as you incorporate proper accounting practices into your medical practice, you will see an increase in overall efficiency throughout your finances. 

Proper accounting optimizes and streamlines your financial processes, reducing the time and resources required to manage your finances as a whole. Over time, this will save you valuable:

  • Time
  • Energy
  • Money 

With the time and energy you save, you can focus on your core mission of providing quality care to your patients and do so knowing that your finances are set up to carry out this mission for many years to come.  

Further Your Mission with Proper Accounting 

Taking the time to create and optimize proper accounting practices for your medical practice is critical for long-term success. 

The confidence provided by strong accounting practices and accessible financial data will allow you to grow and thrive in pursuit of your mission. 

To recap, proper accounting will provide you with:

  • Accurate financial reporting
  • Improved decision-making
  • Compliance with government and state regulations
  • Better communication with stakeholders
  • Increased efficiency throughout all of your financial processes

With these factors in mind, it is paramount to make accounting a priority for your organization as you continue to grow and focus on improving your financial health. 

As you lead your medical practice, your time will no doubt be spread very thin across all areas that you must oversee on a daily basis; it can be difficult to give proper attention to accounting when there are so many other things on your to-do list. If this is the case for you, consider reaching out to an accounting service to alleviate some of this pressure. 

At Leichter Accounting Services, we have several decades’ worth of experience helping businesses and medical practices optimize their accounting to meet their needs and thrive as a result. 

We would love to work one-on-one with your medical practice to do the same. 

To schedule your consultation, you can contact us here. We look forward to working with you!