While physicians are experts in caring for patients, managing finances can be just as critical for sustaining a healthy practice. In this guide, we’ll share essential financial strategies tailored specifically for healthcare professionals. From maximizing efficiency to outsourcing accounting needs, these expert insights are designed to help you achieve long-term financial well-being for your practice.
1. Institute a Culture of Transparency and Accountability
If your finances are disorganized and no one is systematically reviewing the statements that are produced within the firm, the risk of financial collapse increases dramatically. It is crucial for accounting staff of physicians to review financial statements monthly, like your balance sheet, income statement, and expense report.
By setting a standard of frequent assessment, businesses can better track their financial evolution and scan for discrepancies or trends that are fraudulent or harming financial goals. On this same note, it is highly advisable for physicians to create budgets that are as detailed as possible, perform meticulous financial analysis, and to distinguish between personal and professional expenses.
2. Digitize Records
Digitizing medical records is crucial for physicians not only for improving patient care but also for optimizing financial management. Transitioning to electronic health records means medical practices can streamline administrative tasks, reduce paperwork, and minimize human errors associated with manual data entry.
The result: efficient billing processes, quicker reimbursements from insurance providers, and better tracking of financial performance. Digital records also enhance data security and compliance with regulations, reducing the risk of costly penalties, and protecting against physical disasters that can decimate records.
3. Plan for Surprises
Planning for surprises is essential for physicians to maintain financial stability in the unpredictable world of healthcare. Unexpected expenses, such as medical equipment repairs, changes in reimbursement policies, or sudden fluctuations in patient volume impact a practice’s cash flow.
By setting aside funds in an emergency reserve and maintaining a flexible budget, physicians can be better prepared to handle these surprises without derailing financial goals. Planning for the unexpected ensures that your practice remains resilient in the face of financial challenges, allowing you to focus on providing quality care without unnecessary stress.
4. Outsource Medical Accounting Needs
As iterated in a previous blog post, outsourcing the accounting needs of your business can cut costs, increase flexibility, maximize efficiency and transparency, and reduce the risk of regulatory violations. Professional accounting services stay up to date with changing tax laws, healthcare regulations, and industry standards, ensuring your practice remains compliant while minimizing costly mistakes.
Outsourced experts also bring specialized knowledge to streamline billing, manage payroll, and optimize cash flow, helping your practice run smoothly and financially secure.
5. Consult with a Team of Expert Financial Advisors
Tired of trying to manage all the confusing and constantly evolving accounting procedures all by yourself? At The Hechtman Group, we want your focus to revolve solely around providing care to patients. By taking the time needed to holistically understand our client’s needs, we ensure no voice is unheard and no stone is unturned to allow your organization to run as smoothly as possible.
Contact us today with any questions you may have about how to best manage the finances of your healthcare firm. Whether you need a few pieces of hyper-specific advice, or are looking to offload accounting services, our dedicated team is here every step of the way.
At The Hechtman Group LLC, we understand the burdens small businesses endure in assuming more than one role to support the organization. That’s why we offer highly experienced client advisory services (CAS) for companies who can benefit from outsourcing their accounting, CFO, or Controller consulting needs. Additionally, our comprehensive expertise in QuickBooks certified ProAdvisor means that we can create a tailored accounting solution to centralize your finances and simplify your books. Our CPAs and accountants can guide you through all the necessary steps while also creating best practice opportunities for long-term growth.