Dentists and medical workers are busy people – after all, it isn’t like health emergencies can wait until the following morning!
Is it any wonder that many clinics have a hard time keeping up with their bookkeeping requirements?
Just like any other business, dental and healthcare clinics and allied health professionals also need sufficient cash flow management to stay afloat.
If you ask us, online accounting and bookkeeping services are the way to go.
Are in the healthcare services industry? Is your admin team overwhelmed with all of their responsibilities?
If so, get in touch with our bookkeeping service in Melbourne – we’ll set you up with something that’s quicker and easier.
Why is financial management important in healthcare?
Even if you are a healthcare professional, you will need to familiarise yourself with bookkeeping terminology and financial management practices.
The reason for that is simple: while you deal in medicine and treatment, at the end of the day, money is still what keeps your operation running.
And as such, knowledge and practice in bookkeeping and accounting are absolutely crucial for small operations in the medical and healthcare sector, whether you’re a publicly or privately-run clinic.
And here’s why…
Achieve your financial goals
Healthcare professionals have different financial goals – that said, you still have them, especially if you’re a privately-run clinic.
With this in mind, an accessible and organised financial management system is key to helping you evaluate your healthcare operations and evaluate supplies, staff, and expenditures.
All of this in turn requires a strong understanding of your finances – something that our bookkeeping services in Brighton can help you with if your admin team is swamped.
Helps in purchasing decisions: what is the importance of financial information to the hospital?
One of the highest costs that dental and medical practitioners would spend is buying not just big-ticket purchases of medical equipment, but also day-to-day resources such as anaesthetic and needles.
It can get especially difficult if you run a large operation that makes multiple purchases on an ongoing basis. A small clinic might be able to get by, but a large hospital? That’s an entirely different story!
How much can you budget towards these purchases? How are your expenses looking? WIll you be able to make these purchases without impacting your cash flow?
These are questions that good bookkeeping can answer for you – all the more reason to improve your internal bookkeeping.
Easy compliance with tax guidelines
Even healthcare professionals need to pay taxes.
It’s important to note however that dental and medical professionals follow different tax guidelines:
- Many medical procedures are GST-free
- Procedures not covered by Medicare still come with GST
- Medical aids and appliance purchases are GST-free
- Repairs and service may be GST-free depending on the circumstances
There are many different rules, exceptions and guidelines with these cases – and that’s on top of all the GST requirements that come with things like staff salaries and other expenses.
Our team team specialises in providing bookkeeping in St Kilda and throughout Melbourne’s south-east for a range of entities, including dental and other healthcare professionals.
As such, we can help you organise your finances and cash flow month-by-month, including your uniquely complicated GST situation.
Equipping you with better bookkeeping tools
A bookkeeper doesn’t just help you by doing the maths themselves – they also equip you with better tools to help you do your own bookkeeping.
Just like the best medicine is a good diet and an active lifestyle, the best guard against bookkeeping errors is an effective system that’s easy-to-use.
One of the easiest ways to track your finances is by using a cloud bookkeeping system.
The big selling point is the ability to access your records from anywhere at any time – however, these also come with the advantage of automating large parts of your bookkeeping.
Programs like Quickbooks and MYOB bookkeeping sync with your bank accounts and also automatically generate reports, saving you time and reducing calculation errors.
What are the advantages of using QuickBooks and other cloud bookkeeping platforms?
Cloud bookkeeping platforms like MYOB, Xero and QuickBooks are excellent choices for medical centres, dentists and allied health professionals alike.
And not just by automating your bookkeeping, either – our Quickbooks bookkeepers in Melbourne are here to explain the other ways cloud bookkeeping makes your record-keeping more accessible and effective.
In addition to being accessible from anywhere with an internet connection, accessibility also means making the process of bookkeeping easier and more straightforward.
We mentioned the automated reports and syncing with your accounts – however, cloud bookkeeping systems can also:
- Automatically calculate your GST obligations as a medical organisation
- Sync with payroll, time-tracking, patient database and invoicing systems
- Offer powerful add-ons and extras to customise your system
- Invoicing and reminders
With all the admin work that goes into managing a medical clinic or facility, each of these time-saving advantages can be a major boon to your operation.
Invoicing made easy
Invoices can be difficult to keep track of – missed invoices can result in you not receiving vital cash inflows, which can impact your financial wellbeing.
Not only that, but an invoice you owe can cause trouble if you forget about it and don’t pay on time.
In addition to helping you stay on top of your bookkeeping, cloud bookkeeping systems can also take care of invoice-rel;ated matters for you, including:
- Generating invoices
- Sending out automated reminders
- Tracking due dates
In many cases, your cloud bookkeeping can also be used to power an online payment system, allowing patients to pay invoices online using credit cards or paypal.
Pay taxes on time
Taxes can be a headache – doubly so for dental practices and other medical professionals, who may have to deal with different requirements.
What cloud bookkeeping does is automate large parts of your bookkeeping, including GST collection and reporting.
Among the many bookkeeping functions that your cloud bookkeeping software can automate for you are your Business Activity Statement (BAS) or Instalment Activity Statements (IAS). Programs like QuickBooks automatically calculate GST owed and collected, applying all the special rules that medical clinics need to adhere to.
Don’t miss any tax deadlines and avoid penalties by accurately reporting your taxes and paying them on time.
Manage your expenses
Bookkeeping software like Quickbooks helps medical practitioners track all billing, invoices, and other clients’ payment information.
Moreover, it can also be a big help in keeping on top of your expenses.
And not just with accurate record-keeping, either – good bookkeeping can also help you avoid errors by automatically reconciling your accounts.
Quickbooks bookkeeping and other cloud platforms sync between your various accounts, automatically picking up on discrepancies and fixing or alerting you.
What is QuickBooks Pro used for?
QuickBooks can be a powerful tool for your medical centre’s bookkeeping needs – but have you heard of QuickBooks Pro?
Think of this as not just a bookkeeping system, but an all-in-one business management system. In addition to just recording your bookkeeping, this powerful upgrade allows you to:
- Track time
- Track inventory automatically
- Manage multiple currencies
- Create more advanced budgets
However, there’s one thing in particular that QuickBooks has over other cloud bookkeeping options…
How do you record medical expenses in QuickBooks?
Did you know? QuickBooks Pro actually has features built-in that are designed specifically with medical expenses in mind!
So how do you do it?
Simple: all you need to do is click the “add new form” button and find the “Medical Expenses” display in the search results. Click the “add” button next to the medical expenses, and it will generate a medical expense form for you.
Be in control of your healthcare business – call a bookkeeper in Melbourne today!
Need help with bookkeeping at your medical centre? It all starts by setting up the right system.
And ideally, it starts by integrating QuickBooks into your bookkeeping setup!
Of course, that’s a lot easier said than done – that’s why you can always lean on our bookkeepers in Melbourne.
We’ve got years of experience in the cloud bookkeeping field specifically, and can help you:
- Set your new system up
- Train your admin staff on how to use it
- Migrate your old records over
- Set up extra add-ons and plugins
No matter what it is you need, Maximum Business Solutions can help you grow and maintain healthy financials.