Detroit, MI – ( NewMediaWire ) – December 21, 2020 – Dr. Scott Zack Michigan resident is a successful chiropractor discussing his principles for administering medical practices including accounting procedures. Establishing an effective bookkeeping function is critical for efficient back-office operations.
This includes defining accounts payable, insurance billing, and general ledger accounting tasks. Scott Zack Michigan notes many new chiropractors do not focus enough on the accounting basics and business administration. Hiring the right bookkeeper or accountant is only part of the process. Procedures need to be established and maintained to track and pay bills, send invoices to clients or insurance companies, and pay taxes.
Dr. Scott Zack also notes the importance of the income statement and balance sheet. These reports should be prepared at regular intervals to gauge the health of a chiropractic business. Financial statements should be maintained in a software package. Supporting documentation such as bank statements and insurance billing information should be retained according to industry document retention standards. Failure to keep accurate records can have a myriad of negative results.
To avoid accounting mishaps, it may be beneficial to work with an outsourced CPA or CFO consultant. Having a business expert examine accounting processes and provide recommendations can save many headaches and distractions over the long run. The result being that chiropractors can focus on what they do best, which is providing attentive care to patients that need it. Scott Zack from Michigan notes creating a team of talented experts and advisors, each of whom has specialized knowledge of legal, accounting or insurance-related matters, is key for steering a chiropractic business in the right direction.
Without proper accounting, important tax returns may not be filed accurately. Similarly, bills may not get paid resulting in fees and penalties. Scott Zack notes that essential tasks, such as bank deposits and insurance billing, completed improperly can lead to cash flow deficiencies at a minimum. Errors can also lead to problems meeting payroll obligations or paying vendors for essential medical supplies. Even good chiropractors are susceptible to bad accounting practices that can damage their business.