Owning your medical practice comes with its perks. From limiting clients to choosing your schedule, you practically get to be your boss. But your medical education or your passion for medical practice will not prepare you for the financial challenges of an entrepreneur.
Like other small and medium enterprises, medical practitioners like you also have to adhere to accounting and billing norms. Getting the accountancy process right is the prerequisite to running a successful business.
You might be lacking formal financial education or intimidated by the bookkeeping process, or simply not interested. Whatever the case may be, you need to maintain proper financial records. Below are some tips on how to keep your accounting books healthy:
1. Maintain detailed records
Keep a detailed record of money coming in and going out of the business. A bank statement can provide you with a summary of non-cash transactions conducted. Maintain receipts of cash transactions, preferably sorted according to months. However, it is essential to maintain digital versions of these to aid the work of the accountant. Maintain backups of all these online receipts and create additional cloud copies to ensure data availability.
2. Timely collection of taxes
Remember to collect taxes whenever applicable. It can be at the point of sale or when you generate employee payrolls. Do not postpone collection of taxes till the end of the year, as this can only lead to greater hassles during financial year-end.
Deferring tax payments might be tempting either to save time or to gain temporary access to additional money. However, it causes more errors in the long run. Medical practitioners should also consider the tax exemptions and components of the tax return to gain the most out of tax filing.
3. Financial documents
With the expansion of your practice, the associated financial complexities will also increase. Maintain regular cash flow statements, profit and loss statements, and balance sheets. These are mandatory to check on the overall financial health of your practice.
To ensure proper financial recording, hire a professional for the same. Doctors can also fund their daily expenses or cater to a newer patient base with a loan for doctors.
4. Automated invoicing
Like any other form of business, generating revenue is important even for medical practitioners. However, keep track of invoices to ensure the financial health of your practice. An easy means to achieve this can be by automating the invoicing process. But it is in the healthcare professional’s prerogative to ensure outstanding invoices are met promptly.
The best way to overcome your adversity towards accounting is by learning about it. Try to invest some time in educating yourself on how to organise your finances better. Attending accountancy seminars and reading self-study materials can provide self-confidence and also simplify accounting for you.
Additional Read: Top medical software available in India and their applications
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