Posted on: 23 April 2018
Between dealing with insurance companies, pharmaceutical benefit managers, physician's groups and the business side of running a private practice, it can often feel like you don't have enough time for your patients. By hiring the services of a certified public accountant, you can offload some of the responsibility and headache of running a private practice onto someone trained in navigating the complex tax code. They can even save you money by lowering your practice's annual tax bill. Here's what a certified public accountant can do for your medical practice.
Analyzes Your Cash Flow
In the course of running your private practice, you'll have to make some tough business decisions. It might be nice to have an ultrasound unit in your office to provide diagnostic imaging for your patients, but can you afford it? Would the increased revenue of on-site ultrasounds offset the cost? Could you deduct it as an expense on your taxes? These questions primarily deal with cash flow: investing your revenue in ways productive to your practice without letting expenses overtake your revenue.
While it's important for your practice to put patients first, it's equally important to make sure you have a positive cash flow and aren't forced to close. A CPA familiar with the healthcare industry will guide you in making the right choices for your practice, allowing you to concentrate on patients while they concentrate on the business decisions.
Simplifies Your Invoicing
It's important to prepare simple invoices for patients that are easily understandable — an invoice that's easy to understand is more likely to be promptly paid on time. If patients struggle to figure out how much they owe or how to pay it, they will become frustrated. Certified public accountants can help you draft simple invoices for this purpose. Additionally, the payment of invoices is tracked electronically to give you an instant picture of your revenue. Making it easier for your patients to pay their medical bills is good for both your patients and the financial health of your practice.
Prepares Taxes for You and Your Practice
A CPA can prepare taxes for both you and your practice. You can concentrate more on your patients instead of painstakingly filling out tax forms during tax season. A CPA also assists in long-term tax planning, aiding you in making business decisions that reduce your tax burden. This saves your practice money by planning purchases around potential tax deductions. One of the most important things a CPA does, unlike a software package or non-CPA accountant, is represent you in front of the IRS in the unlikely event that you are audited. Being audited is a major headache, and a CPA will relieve that burden from you.
If you'd like to simplify your business, hire a certified public accountant with knowledge of the healthcare industry and private practices. When a CPA takes over the financial side of your practice, you're freed to concentrate solely on helping patients. For more information, contact a company like Burkhart Peterson & Company.Share