[fullwidth background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”” padding_right=”” hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][title size=”1″ content_align=”left” style_type=”none” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]Medical Accounting[/title][fusion_text]Communication between physicians and their financial advisors is critical. Often, physicians are reluctant to discuss financial matters, but in today’s environment, communication is important. Practice management, revenue generation, and personal taxes are areas that require year-long interaction between the parties. Practice management is an area where the CPA can assist with suggestions of best practices. Revenue generation is maximized by a physician who knows and understands his or her office.
Accounts International solutions to help your practice run smoothly. Frequently, practices must do more work with fewer employees, which decreases the likelihood of adequate internal controls. Too few employees handling cash and managing business operations without guidelines or appropriate oversight leads to less efficient cash management and greater risk of latent fraudulent activities. Our services provide a layer of oversight and management over the “service-to-cash” process.
Our complete financial management solution is founded on two basic tenets:
- Maximize collections and
- Establish and maintain internal controls
Typically, these two aspects – collections and controls – must be weighed in the balance of other demand on time, knowledge of the personnel, level of trust, and structure of the organization. Our approach allows for both aspects to be addressed to provide a comfort level that collections are maximized and the integrity of internal controls are maintained. Our processes are built on corporate best practices associated with cash and receivable management. We will work with your existing staff to establish processes and internal controls based upon established management practices.
A general framework of critical financial issues which the physician and CPA should work on together includes:
- Practice management;
- Revenue/expenses;
- Personal taxes;
- Miscellaneous issues.
Practice Management
There are a myriad of reasons why physicians and CPAs fail to work together easily. Physicians can be very accomplished in their field of study, but accounting and finance requires a different skill set to manage their practices. Often they turn the daily management over to an office manager without adequate oversight or financial controls, leading their practice to significant risk. It is always prudent for the physician to come to the table prepared to talk about the practice’s finances. Finally, the physician may experience time constraints, or even a reluctance to discuss money with a CPA. These reasons can all lead to problems that need immediate resolution. With the advent of the Affordable Care Act, practice management has become confusing for many physicians. They must not only know how the laws are changing, but must adapt their particular work habits to comply with the laws. This also leads to frustration and problems that need resolution.
Revenue Expenses
Where does a physician start? It is vital for a physician to engage a competent CPA at the inception of his or her practice. The CPA will be able to help the physician establish an adequate chart of accounts and a system of checks and balances to deter fraud. The CPA can assist in banking relationships and suggest a good attorney. Most importantly, the CPA and physician will begin to form a relationship that can grow fully as the years pass and the practice grows.
Personal Taxes
Physicians and CPAs should work together to review the management of the practice, offer suggestions, and share ideas. Ideally, the groundwork should be prepared before the actual meeting. Financials are produced and reviewed, notes made, and changes initiated if necessary. This involves close work between the office manager or supervisor of the medical practice and the CPA. By the time the CPA and physician meet, many problems are ironed out, leaving more time for high-level discussions. For example, one of my clients has an office manager who calls me weekly with updates. These may take the form of “just an FYI” or “I have a problem.” When
the physician and I meet, we are able to concentrate on immediate problems. There is no constraint on the content or length of the meeting.
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