Whether you are the CEO of a healthcare facility or you are a doctor running a private medical practice, you must already be aware of how arduous albeit essential medical bookkeeping is in order to grow the practice. And to be fair, you already have a high-pressure, demanding job.
As a healthcare practitioner, you might not be well-versed in bookkeeping or even have the time to maintain day-to-day transactions. After all, your bigger objective is creating an impact on the healthcare landscape and not to engage in administrative activities. Nevertheless, even if you manage to get through it by the end of the day, it distracts you from the one thing you love doing – patient care!
Caution: Putting your books off over a long period is a sure-shot recipe of inviting stress and trouble!
Managing books can get more complicated as your business grows. Understanding the fact that growth brings complexities in financial management is a no-brainer. Moreover, it’s not limited to only handling the finances; it goes far beyond to the point of making strategic decisions based on the financial health of your practice. However, hiring in-house medical bookkeepers can cost you an arm and a leg.
The best alternative is to shift the burden to those who love crunching numbers!
Outsourcing the medical bookkeeping service offers you an easy and affordable back-office solution that lets you focus on your patient outcomes. Let’s look at some ways outsourced medical bookkeepers can take the burden off your plate.
You cannot provide the best healthcare services to your patients without adding the inevitable back-office functions into the mix. However, handling huge piles of paperwork from both clients and insurance companies requires burning the candles at both ends which is too exhausting for the already overwhelmed medical practitioners.
The right medical bookkeeping partner will help streamline operations, establishing an efficient reporting system with the CPA, and delivering the needed financial information on time with utmost accuracy.
Medical bookkeepers know that running a healthcare practice is intense. They help you make data-driven decisions through organized, accurate, and timely maintenance of records. You get better insights on contracting the right insurance company, handling bad debts, staffing and compensating, managing the revenue cycle, striking a deal for mergers, partnerships, etc.
If you’re not keeping track of your incoming and outgoing payments, it impacts the quality of your services. Inaccurate entries may also lead to poor decision making and you might be answerable to all your stakeholders.
Thus, hiring an outsourced medical bookkeeper to keep your books and maintain your financial forms decreases the likelihood that your healthcare facility will have to deal with these uncalled-for situations.
This is especially important when patient health and patient satisfaction are your top priority and you don’t want to compromise on either.
It is very common to see medical practices constantly battling with denied insurance claims, bad debts, payment collections, and a plethora of billing issues including complex billing codes. Such improper accounts receivable management lacking account-tracking leads to delayed financial inflow.
Your outsourced medical bookkeeper will keep a tab on AR to track what has been billed, how much has been paid so far, and what remains to be collected.
With the right mix of analytical tools and proper bank reconciliation and the verification processes to check if transactions are accurate and you have not missed any entry, they will enable you to prevent fraud and errors, reduce rejected claims and drive down the 90+ aging receivables.
If you have a dedicated medical bookkeeper working for you, it’s easier for you to access data-driven information when needed and make strategic growth decisions. It allows you to know when a patient invoice is outstanding as shown in the non-standard financial reports. It gives you a breakdown of revenue and/or receivables by payor type to forecast better.
You are at a losing end when you indulge yourself in DIY bookkeeping. The time that could be devoted to patients is taken up by your back-office functions. Hiring a medical bookkeeper can enable you to have more time for your patients which will improve your cash flow, and will subsequently lead to better savings.
The outsourced medical bookkeeping partners leverage current technology such as cloud-based accounting and finance solutions that can integrate your operations into one easy-to-use platform.
Some of the most common accounting software solutions include the following:
Lastly, remember that hiring the right bookkeeping service is important. Need to know how can you access the best bookkeeping for medical practice?
Let Monily help you. As your outsourced medical bookkeeper, our experienced bookkeeping and accounting professionals, equipped with best-of-breed tools, technology and proven processes, will provide you with a high-level, cost-effective, long-term solution for your bookkeeping and back-office needs. Monily ensures sustainability and financial efficiency of your medical practice by not only managing the accounting and bookkeeping function for you but also providing you with top-notch AR/AP, payroll processing, tax filing, and CFO services at an affordable price.