What is Medical Bookkeeping?

Medicine is one of the most important industries in the United States. Hospitals, physicians, and other medical practitioners help people get better when they are unwell. The medical industry is also highly competitive—owning and operating a successful medical practice is not easy. 

All medical industry businesses and professional medical practices need well-maintained financial books. In this article, our bookkeepers for medical practices provide an overview of medical bookkeeping and explain how an accounting professional can help support your business.

medical bookkeeping

Medical Bookkeeping: Explained

Put simply, bookkeeping is an accounting process whereby all of a company’s financial transactions are recorded. With the accurate and updated “books”, a business owner/manager will have all of the information that they need to make the right decisions. Medical industry businesses with sloppy books can run into serious problems for a number of different reasons. 

For businesses operating in the medical industry—whether as a private professional practice or another type of firm—there are some unique bookkeeping issues that must be addressed. Among other things, this includes certain state/federal regulations, vendor & supplier payments, and complex payroll needs. 

You Must Choose an Accounting Method

When managing a medical practice (or any other types of business), it is crucial that you select an accounting method. There are two primary bookkeeping methods for businesses: Accrual accounting and cash basis accounting. Although either method can be used, it should be noted that the majority of medical practitioners opt for cash basis accounting. 

As defined by Investopedia, cash basis accounting is a bookkeeping method that “recognizes revenues and expenses at the time cash is received or paid out.” When books are kept well-organized and fully up-to-date, cash basis accounting allows business owners to easily track every dollar coming into and out of their company.

Why Medical Practitioners Can Benefits From a Professional Bookkeeper

For medical practitioners who own their own business, time is a top priority. You undoubtedly have a lot of things to deal with—both professionally and personally. As important as bookkeeping is, it can also be a tedious and time-consuming task. A bookkeeping professional with experience serving the medical industry can help you by: 

  • Reducing the time and management costs associated with running your business; 
  • Ensuring that books are accurate to prevent potentially costly errors; 
  • Identify inefficiencies to improve the profitability of your medical practice; and 
  • Giving you the tools and information to manage your company’s payroll.  

One of the advantages of working with an outside, independent bookkeeper is that a business can save a lot of money. At Williams Accounting & Consulting, we are cost-conscious. Our bookkeeping professionals for medical practitioners are committed to helping them save more money.  

We Provide Cost-Effective Bookkeeping Services for Medical Companies

At Williams Accounting & Consulting, we have the professional skills and real-world business expertise that you can rely on. Our bookkeepers will put in the time and resources to ensure you receive top-quality support. Contact us now to find out more about our business accounting and consulting services. From our office locations in Atlanta and New Orleans, we provide medical bookkeeping to practitioners throughout the Southeastern United States. 


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