Finances, Money, and Taxes for Chiropractic & Medical Practices


You need a good system to keep track of your business expenses and income (QuickBooks Pro 2012).  This protects you and your money even though it is a lot of work.

Most doctors would rather not deal with this aspect of the business.  Just remember that while it would be cheap to hire a college student for minimum wage to do the remedial tasks involved, they could very easily steal from you.

If you are going to have assistants rather than a professional handle your finances be sure that atleast two workers share in the duty.  Also rotate duties with other office workers.  This keeps everyone from getting lazy/bored with their job and makes it harder for someone to steal from the system.

Why Use Quickbooks for your Practice?

Reports are important and Quickbooks has few rivals, particularly for the “Do It Yourselfers” like me.  I have a wonderful CPA, Glynda Cavalcanti in Fort Pierce, FL, that I would recommend to anyone.  She met with me and has answered my petty questions from day one but has not charged me a dime.

Managing Money in a Chiropractic or Medical Practice

Photo used under Creative Commons from RambergMediaImages

I, of course, took care not to be obnoxious, turning first for answers to google.

It is designed for business and can be customized to your business type.  It is what most professionals are acquainted with and will help you plan your taxes and even pay your employees.

Every single transaction you make, miles traveled in your car for business trips, professional lunches, etc, must be categorized to the proper expense or income account so that you will be ready for tax day.

DON’T FRET!  If there is one good thing about owning a business, it is the deductions you can get for doing “business activities” and other business related expenses.

How to find a good CPA for professional team

Step 1:  Look up as many CPA’s as you can on google. Write down each of their numbers

Step 2:  Call and talk to them.

Step 3:  Ask each one a survey of questions.  You probably won’t get a straight answer from all of them for each question.  Ask if they do the paperwork or an employee does, what their attitude is toward simple occasional questions, price, what software they prefer to use, and whether they have clients in similar businesses.

You do not want a CPA to experiment with your business finances and taxes if you are their first medical or chiropractic practice.  If you are going to pay the money, find someone that knows what they are doing!

Quickbooks Pro

Most CPA’s will be familiar with QuickBooks.  In fact, it has been designed to help Money professionals find out where you messed up.  It keeps a journal of all the actions you took and you can even pack up your file and send it electronically to your CPA to have a look.

It has great reports that are important for monitoring the health of your business and it can retrieve most transactions online and download them to simplify life.

Expense accounts are something you will have to get used to if you have never run a business, but the initial setup will get you started pretty well with the ones you need.  You can work out, add, and delete, the ones you use and don’t use over your first year.  These different accounts will have different meanings when it comes to tax time.

One especially important thing that we pay extra for (~$300) is the payroll feature that automatically calculates payroll taxes for employees and also helps us submit our state and federal tax forms that are due quarterly in most cases.  I could do this all manually, but it would take me hours and is worth $25 a month.

Conclusion

Whether you are starting out cheap or not, you will need QuickBooks. The Pro Version is the version we went with in our practice, the Premier version is over the top for a small business (basically, multiple users can access the same file on multiple computers at the same time  which is unnecessary for a medical practice).

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What do you use to track your expenses?

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