Step-by-step Guide on How to Do Bookkeeping for Medical Aesthetic Clinics in the USA
Introduction
So, do you have a medical aesthetic clinic in the United States? That’s amazing! But in the middle of all the enthusiasm around patient care and business expansion, there's one vital component that we often forget—bookkeeping. Bookkeeping is the core of your clinic's financial security.
It can help you to apply the tax rules and make the right company decisions concerning income, expense, and performance. Billing codes, insurance claims, and regulation compliance, among other factors, complicate the accounting process, making it even harder for medical aesthetic clinics.
In this blog, we will provide a guide on how to do bookkeeping for your medical aesthetic business. They will teach you everything you need to know, from the system setup to daily checkout and the preparation for tax season. Now, let's get started!
Understanding Medical Aesthetic Clinic Finances
Services offered and products sold are the key revenue streams for medical aesthetic clinics. The clinic’s major income sources include chemical peels, botox injections, and laser hair removal. Another revenue source involves selling body products, cosmetics, and skincare products, which are made from medical grade.
While they may not be as frequent as other forms of revenue, insurance claims can be a significant source of funding for certain activities, especially if the patient’s health plan covers them. On the other hand, many expenses are incurred for the medical aesthetic clinic business. This is one of the largest costs because it involves paying salaries to support workers, administration personnel, and medical specialists.
How To Do Bookkeeping For Your Medical Aesthetic Clinic
Step 1: Setting Up Your Chart of Accounts
The chart of accounts is a list of all the accounts for your clinic, and they should be arranged in order logically. It is the basis of your bookkeeping system, giving you a full picture of your money. Key considerations for your medical aesthetic clinic's chart of accounts:
Specify the objective: The chart of accounts should include all operations and financial needs that are relevant and specific to your clinic.
Make unique accounts: Develop profiles with the following in mind for medical aesthetic clinics:
Revenue AccountsOutpatient services, goods or services sales, third-party paymentsExpense AccountsWages, rent, electricity, paper, adsAsset AccountsCash, equipment, and inventoryLiability AccountsAccounts payable, loansEquity AccountsEquity, reserve & surplus
Think about accounting software: Many of these software have templates for account charts specific to medical practices. The results can be accurate, and the time spent preparing the work can be minimized.
Following a detailed structure of the chart of accounts establishes a solid foundation for your clinic’s bookkeeping and enhances the process of tracking your clinic’s financial performance.
Step 2: Recording Financial Transactions
Your medical aesthetic clinic must have a fast and accurate means of tracking financial transactions. Ensure that all revenues, expenses, and adjustments are recorded in detail, preferably daily. This includes all financial activities, including payments to vendors, insurance firms, and patients.
To make your financial record keeping as consistent and accurate as possible, it is recommended that you use a double-entry accounting system. To ensure that the book balance is maintained using this method, you need to ensure that every transaction is in the form of a double entry. Essential patient payments, insurance claims, and vendor invoices will make it easier to check if you employ a system that will help you track your bookkeeping process and identify any irregularities.
Step 3: Managing Inventory
Another factor that will determine the ability of a medical aesthetic clinic to make money is its stock management. It ensures that you have adequate stocks to attend to the patient’s needs and minimize wastage or costs of equipment and medicals used in the treatment process.
To make this procedure go more quickly, an inventory control system such as a spreadsheet or application can be effective. This system should allow you to monitor the expenses, check stock levels, and set up reorder points to avoid running out of essential supplies. The perpetual inventory approach can be useful in identifying discrepancies or losses since you can monitor the inventory levels in real-time.
Step 4: Preparing Bank Reconciliations
Bank statement reconciliation is an important activity that must be carried out at least on a monthly basis for any clinic that specializes in medical aesthetics. This procedure can ensure the accuracy of your financial records as you compare your bank statements with those of the clinic’s internal records.
To reconcile your bank accounts, you will require your bank statements, check register, and any checks or deposits that have not cleared yet. First, you should check the bank statement's opening balance with your clinic's documentation.
Lastly, review the transactions on the statement and compare them with the records in your company through reconciliation. If there are any differences, look into the reason behind it and make the corrections. To rectify the situation, it might be necessary to amend your records or contact your bank.
Step 5: Tax Preparation and Filing
For medical aesthetic clinics, the process of preparing and submitting taxes is also an important aspect of accounting. It is important to remember that there could be serious consequences for failing to follow the tax laws, including financial penalties and legal consequences. Take these actions to make sure your tax filing goes smoothly:
Collect the required paperwork: Bank statements, income statements, balance sheets, receipts, invoices, and employee payroll data must be collected.
Ensure tax laws are followed: Identify the local, state, and federal laws of taxation that apply to your clinic. This can involve talking to an accountant or a tax advisor.
Submit all the tax forms: This includes submission of income tax returns on or before the due dates. Submit your federal, state, and local income tax returns and any other required tax documents by the stated deadlines.
Hence, the following preventive measures can help medical cosmetic clinics manage their tax obligations and avoid legal troubles.
Facing Issues with Bookkeeping Of Your Medical Aesthetics Clinic in the US? Contact SamsCashFlow Now!
SamsCashFlow can handle the bookkeeping for your medical aesthetic clinic, allowing you to concentrate on what you do best—simplify operations. The knowledgeable staff will take care of Your financial needs, including proper record-keeping and tax preparation.
By working with SamsCashFlow as your partner, you'll be able to make wise decisions and succeed in the long run by learning important financial health-related information. Reach out to us right now to arrange a consultation and discover how we can support the success of your clinic. So, book a call here: https://www.samscashflow.com/#book.