The skyrocketing cost of healthcare in the U.S. continues to pose challenges for consumers and practitioners alike. Just as public officials seek solutions to make healthcare more affordable, so too must medical practice owners consider new ways to bring greater efficiencies to their practices. Medical practice accounting solutions can play a significant role in cost-reduction initiatives. The size of your practice will likely dictate which functions you can manage internally and those which make sense to outsource.
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Accounting Software for Medical Practices
Given the rate of changes in the healthcare profession, it’s understandable that practices like yours seek ways to streamline medical accounting procedures.
For example, how many tasks is your accounting staff still managing manually that can be automated with the right accounting software? You can gain great insight into your business operations by using programs that will automatically track all expenses and earnings. Software like QuickBooks or NetSuite, among others, are valuable tools to manage healthcare accounting. These software platforms can assist with your practice’s accounts payable and payments—all of which will make tax preparation more efficient.
In addition to significantly improving the efficiency of your billings and collections, accounting software can also help you:
- Improve revenues
- Reduce accounts receivables days
- Reduce denials by executing successful denial management
- Reduce the time for claims resolutions
- Free up staff time for revenue-generating activities
See related blog: The Role of Accounting in Healthcare Management
If you run a larger healthcare practice, or simply don’t have the accounting resources necessary, you may want to consider outsourcing your accounting operations. After all, the volume of patient data can quickly become unmanageable. That’s when a healthcare accounting firm can help you become more efficient and more profitable—all while reducing your risk for tax noncompliance. Other benefits include:
- Technology: We’ve already mentioned accounting software programs like NetSuite and QuickBooks—and there are many others on the market with increasingly advanced features. When you outsource accounting functions, you have access to a team of professionals who are adept with using these features to your greatest advantage.
- Compliance: The last thing you need weighing down your practice are tax penalties for noncompliance. By outsourcing your accounting function to qualified healthcare accountants, you will have a partner who will help you meet deadlines, ensure better cash flow, apply best practices and watch your bottom line.
- Regulatory Updates: Healthcare is arguably one of the most regulated industries. You want to stay informed on changing regulations and pending legislation that might affect your practice. By staying informed, you can nimbly adjust to changing accounting requirements. While you’re doing what you do best, an accounting professional with deep industry experience can keep you apprised of these changes and how they may affect your practice.
Medical practices today have remarkable opportunities to apply technology to reduce costs and create better cash flow efficiencies. Whether you decide to automate accounting processes internally or outsource these functions to accounting professionals, consider how you can make this the year to boost your medical practice’s productivity while providing high-quality care to your patients. An experience medical practice accounting professional can help.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.