Bookkeepers and Certified Personal Accountants (CPAs): Roles and Importance in Your Medical Practice
Healthcare providers and those planning to open a medical practice often encounter the terms “CPA” and “bookkeeper.” Both these professionals play critical roles in managing the financial aspects of your medical practice. This blog post will explore the distinctions between bookkeepers and Certified Personal Accountants (CPAs), their respective roles, and why having both is essential for your practice’s success.
The Role of a Certified Personal Accountant (CPA):
A Certified Personal Accountant (CPA) is a licensed professional who provides comprehensive financial guidance to businesses and individuals. When launching a medical practice, partnering with a CPA familiar with the medical field and reimbursements is incredibly beneficial. A CPA can offer valuable insights into your business plan’s budget, helping you set realistic expectations for the initial period after opening your practice.
A CPA’s expertise goes beyond financial forecasting; they also ensure proper business formation and guide you through the complexities of filing taxes based on your state and business structure. Moreover, a seasoned CPA can perform a retro analysis, evaluate your practice’s financial health over specific periods, and suggest improvements for future growth. With their understanding of industry trends and resources, a medical-specific CPA becomes a valuable asset to your practice.
The Role of a Bookkeeper:
Unlike CPAs, bookkeepers handle the day-to-day financial tasks of your medical practice. They are responsible for managing accounts receivable and accounts payable, reconciling bank statements, and keeping track of all financial transactions. To maintain accurate financial records, bookkeepers typically use accounting software like QuickBooks.
The bookkeeper’s knowledge of the medical field is crucial, especially when dealing with insurance-related transactions. They ensure timely payments to vendors, manage your billing staff or billing company, and collaborate with the front desk and office manager to handle patient payments properly.
One of the critical tasks of a bookkeeper in medical offices is monitoring electronic fund transfers and insurance payments. They cross-check reports received from billing companies with bank transactions to verify that all expected payments have been received. This vigilance is vital to avoid potential revenue losses.
The Importance of Having Both:
Having a bookkeeper and a CPA is akin to having two expert doctors overseeing the financial health of your practice. While the bookkeeper focuses on the day-to-day financial operations and ensures real-time documentation, the CPA offers a broader perspective, guiding your financial decisions and long-term planning.
The bookkeeper and CPA work collaboratively, communicating findings and suggestions to you and your designated staff member within the clinic. This harmonious partnership provides a comprehensive approach to managing your practice’s finances.
The bookkeeper’s real-time tracking of income and expenses ensures you are always well-informed about your practice’s financial status. This information, in turn, aids the CPA in making informed decisions regarding tax planning, budgeting, and forecasting.
Bookkeepers and Certified Personal Accountants (CPAs) play vital roles in managing the financial aspects of your medical practice. The bookkeeper ensures real-time documentation and smooth day-to-day financial operations, while the CPA offers expertise in business planning, tax filings, and long-term financial strategies.
To establish a financially healthy medical practice, it is essential to have both professionals working collaboratively. A knowledgeable bookkeeper and an experienced medical CPA will aid in handling the early challenges and deductible season, positioning your practice for long-term success and growth.
Hiring a bookkeeper and a CPA is an investment in your medical practice’s financial well-being. Make a wise choice and ensure your practice’s prosperity with the support of both these financial experts.
If you found this blog post helpful or have any questions, please leave a comment. Wishing you a prosperous medical practice journey!