As a chiropractor, you want to provide the best services to your patients to ensure their well-being. In addition, more satisfied patients lead to increased word-of-mouth recommendations, which are necessary to help you expand your practice and invest in cutting-edge technology. Furthermore, you need to take care of your finances. If your facility is financially robust, you won’t have problems running the daily operations and expanding your business down the road. However, chiropractic billing can be quite complex. Thus, availing of chiropractic medical billing services from an expert practice management solution like Park Medical Billing will significantly help you improve revenue cycle management for increased profit margins.
Nevertheless, we’ve listed the 6 best accounting tips in this article for chiropractic practices. Read below to learn!
1. Keep Your Books Up-to-date
Preparing and recording all your books of accounts, such as statements of financial position (balance sheet) and information of financial performance (income statement), are crucial for the financial health of your chiropractic practice.
In addition to preparing and recording, you must also keep your financial statements up-to-date, as this will allow you to make informed decisions for the success of your practice.
The most common bookkeeping tasks for you will be reconciling your bank and credit card statements, making cash deposits, sending invoices to patients and payers, paying suppliers, etc.
2. Outsource Your Bookkeeping
You may want to hire an employee from within your company to save costs and hassle. However, they may not be experienced and knowledgeable enough to complete bookkeeping tasks. In addition, you certainly don’t want inaccurate financial records, which may lead to wrong financial decisions.
Therefore, it’s always better to outsource your bookkeeping department to professionals and experts. Nowadays, most companies offering bookkeeping services use cloud-based accounting software for recording and maintaining accounts compared to manual work. This will help you keep all your financial statements secure on the cloud, and you can always have access to them no matter where.
3. Create Cash Budgets
Cash budgets are ideal for helping you forecast your net cash flow, which is the difference between positive and negative cash flows. At the same time, cash is your facility’s financial health lifeline. Without cash, you won’t be able to pay for expenses such as payment of employees, rental costs, payments to vendors, etc.
That’s why you must create cash budgets in advance for your chiropractic practice to help you take viable action ahead of time. For example, if your cash budgets tell you that you will be in a cash deficit the next month, you may be able to arrange finance for it in advance.
4. Follow up on Receivables
One of the most common issues chiropractic practices suffer from is account receivables recovery, whether from the patient or their insurance provider. Receivables are your assets tied up until you actually recover them.
Thus, you should create accounts receivables reports which tell you about the amount you’re owed and the credit period. This will facilitate you in following up on debtors, so you can recover the amount as soon as possible and utilize it in your facility for better purposes.
5. Review Your Financial Statements Regularly
By regularly reviewing your financial statements, you will be able to better track your business’s finances for optimal health. An income statement will tell you about the sales, costs, and profits you make over a period of time. A balance sheet will allow you to keep track of your assets, liabilities, and equities. The cash flow statement will tell you about the actual cash inflow and outflow.
Monitoring them regularly will drastically facilitate taking the right measures and making the right decisions for a better financial position and performance of your facility.
6. Separate Your Personal and Business Accounts
Last but not least, you should keep your business account separate from your personal account. Although you may have the urge to combine them at the start, it will complicate the bookkeeping process for you.
A separate business account will not only help you keep track of the financial performance and position of your business but will also make you look professional in the eyes of future investors.