For any small business owner, outsourcing tasks that don’t sit within your wheelhouse makes good business sense. You can get on with what you do best knowing that the rest is in safe hands. For a medical practice, one of the most valuable areas you can outsource is your accounting.
While some of the accounting challenges you face may be similar to other industries, the nature of medical practices is quite unique from an accounting perspective. At Vital Addition, we understand these pressures… and have the skills and expertise to help.
Here are four of the biggest benefits you’ll see from outsourcing to a small business accountant.
Reconciling revenue
Medical practice revenue isn’t straightforward. One of the biggest factors in this is the complexity of Medicare, with different item codes and the like. In many circumstances, it can be quite difficult to reconcile the rebates you’ve received versus what you should have received.
To maximise your revenue, it requires perseverance to regularly ensure that your records match with Medicare records.
This is where a small business accountant can help. Rather than trying to find time for the reconciliation process – or avoiding it altogether – we can stay on top of the process… and lift that weight off your shoulders.
Accounting for salaries
While the process for managing salaries for salaried doctors is fairly straightforward, we often see that medical practices hit road bumps when it comes to associate doctors.
What are the biggest challenges? Firstly, there’s accounting for GST on the management fee paid to the associate doctor.
Secondly – and perhaps more problematically – is determining what the split of the management fee should be. When we’ve worked with medical practices in the past, we’re often brought in because the doctors disagree with the amount on their statement. Some practices get caught out trying to keep everyone happy… but that ultimately impacts on the bottom line of the business.
Another issue that can arise around associate doctors is whether they’re actually employees or legitimately working as a contractor. There has been a crackdown in recent times on businesses characterising people as contractors when they should be hired as employees. It’s important to ensure you’re using the right contracts and account correctly for things like payroll tax and superannuation.
Automating processes
Not everything within a medical practice can be automated. Where they can’t, such as with finance operations and accounts payable, we can provide consistent and ongoing support. Where they can, such as with payroll, we can set up a custom solution using cloud accounting software.
The benefit? It saves time and reduces the chance of errors. Rather than your admin staff working through a highly manual process, it becomes a much simpler proposition. Also, instead of waiting until year end to look at your financial reporting, you can have oversight all year round. Plus, you’ll also have us to guide you through what the numbers mean for your results and how you can plug any gaps or create efficiencies in the business.
Balancing patient and commercial outcomes
Doctors always have patient outcomes in front of mind. It’s the nature of the job. But commercial outcomes matter too.
A small business accountant can bring a commercial lens to your business so you can continue to focus on patient outcomes. You can maintain your technical focus – and rightly so – while we give you peace of mind that your business finances are also getting the care they need.
We understand how medical practices operate. We understand the pressures you’re facing and what you’re trying to achieve. We can help you to interpret your results and align your financial goals with the patient outcomes you want to achieve.
Your medical practice small business accountant
Not all small business accounts have the medical practice knowledge you need on your team. We do. At Vital Addition, we understand the challenges you’re facing and can tailor solutions to solve for them. And we do this in an outsourced model, creating further efficiencies for your business.
Contact us to discuss your medical practice and how we can help you to take the stress out of your small business accounting.