Communication between physicians and their financial advisers is critical. Often, physicians are reluctant to discuss financial matters, but in today’s environment, communication is important. Practice management, revenue generation, medical accounting 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 are developed to help your practice run smoothly. Frequently, practices must do more work with fewer employees, which decreases the likelihood of adequate internal controls. Too many 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 medical accounting services provide a layer of oversight and management over the service-to-payment 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 point of discussion with our physicians typically include:
- Practice management;
- Personal taxes;
- Miscellaneous issues.
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 medical 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.
It is vital for a physician to engage a competent accountant at the inception of their practice. We will be able to help the physician establish an adequate chart of accounts and a system of checks and balances to deter fraud. Most importantly we will begin to form a relationship that can grow fully as the years pass and the practice grows.
Accounts International work with physicians to review the management of the practice, offer suggestions, and share ideas. Financials are produced and reviewed, notes made, and changes initiated as necessary. This requires collaboration with ownership and office manager or supervisor of the medical practice.
Please see our article: Best Practices in Financial Management for Medical Practices