Rehabilitation of patients is the main focus of your business. However, you should give the same amount of focus on the financial issues of your clinic. These issues may include your rehabilitation practice tax planning, financing difficulties, and, in some cases, bankruptcy. You need to remember that, although you are a medical professional, you are also an entrepreneur who has the responsibility of running a profitable rehabilitation practice.
Your busy schedule, however, can make this balance seem impossible. This is why it is beneficial for you to discuss the financial issues of your rehabilitation practice with a rehabilitation practice CPA. A rehabilitation practice CPA can help you keep accurate financial records, maintain tax compliance, and make financial decisions for your business.
Benefits Of Using Accounting Software For Your Rehabilitation Practice
Your rehabilitation practice has unique financial and taxation needs. It may be tempting to ask your rehabilitation practice accountant to use a spreadsheet. It is also tempting to want to use a free spreadsheet to monitor your accounts and layout your rehabilitation practice tax planning.
However, any rehabilitation practice accountant will tell you that using the right software for the job will help you make your life easier. It can also save you a significant amount of money in the long term. Using good software improves your ability to monitor your financial records and make informed decisions for the future.
When your rehabilitation practice accountant uses the right software, they can:
Take the stress out of tax planning and rehabilitation practice bookkeeping
Create a unique perspective of your practice's profitability
Minimize the effort needed in monitoring your finances
Here at Fusion CPA, we use various platforms, such as QuickBooks Online, Net Suite, Sage Intacct, and more, when doing rehabilitation practice bookkeeping. These platforms can integrate with most financial institutions to help you get an accurate picture of your finances.
The Best Accounting Method For Your Rehabilitation Center
There are two types of accounting you can use:
Cash basis accounting
It is good to discuss these two with your rehabilitation practice accountant as they can offer rehabilitation practice CFO advisory services suitable for this. If your rehabilitation practice financial advisers determine that the accrual accounting method is best for your rehabilitation practice, you will account for expenses from the second you receive the bills as opposed to when the bills are actually paid. With accounts payable, you will account for receivables when you bill the patient as opposed to when the patient actually pays.
If you use the cash basis method of accounting, then your rehabilitation practice is going to account for expenses when you pay for them, and you will account for your revenues when the money for the bills is received. The majority of physician-owned medical practices use the cash basis method of accounting.
Preparing Profit/Loss Statements
Your rehabilitation practice financial advisers may encourage you to prepare a regular profit/loss statement. The complexity of this statement will vary based on the size of your practice.
Profit/loss statements are a great way to quickly take the pulse of the financial health of your practice. You can review daily records and quickly recognize any discrepancies that must be addressed. The profit/loss statement is useful for our CFO advisory services when we provide practical suggestions as to where money can be invested in your business. We at Fusion CPA offer reputable rehabilitation practice CFO advisory services. Our experienced rehabilitation practice accountants provide services within Atlanta, Georgia, and other parts of the US. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.