Small-scale businesses such as dental clinics, physiotherapy clinics, medical spas, and chiropractic practices need basic bookkeeping too. Bookkeeping is essential in a business setting, seeing as it ensures the proper financial flow of a company.
If you are a local chiropractic clinic, tracking and monitoring your financial transactions are extremely important. Checking your employee payroll, managing your facility and equipment costs, and generating revenue from regular clients undergoing chiropractic treatments are all part of the bookkeeping process.
To learn more about basic bookkeeping for your chiropractic care practice, read on!
In a nutshell, bookkeeping is the process of recording all the financial transactions of your business. The primary purpose of doing this is to reconcile financial information so you can make sound business decisions. Inaccurate financial information may lead to internal theft, unpaid bills, uncollected receivables, tax delinquencies, and unpleasant run-ins with the IRS.
Specifically, bookkeeping entails the recording of financial transactions and any information pertaining to the business operation on a regular basis. It does not only involve the recording of data but also the storing and retrieving of financial transactions and information. It is also a way to reconcile all business transactions to avoid potential financial losses. When reconciling financial information, the following things are kept careful track of:
● Point of Sale transactions
● Company bank accounts
● Medical insurance billing
● Accounts payable
● Accounts receivable
● Cash flow
● Credit Cards
Bookkeeping for Chiropractic Care Practice
As a chiropractor, you are providing chiropractic services to a number of walk-in patients or regular clients on a daily basis. Part of the care you’re providing involves chiropractic adjustments and spinal manipulation. You may also be using electrical devices and other facilities to treat your patients. As a chiropractic practice, you may also have a professional chiropractic assistant, administrative assistant, and other personnel to aid in your business practice.
It may just be a small business set-up; however, you should be managing your finances well. That said, bookkeeping will help you manage your day-to-day operations, handle the cost of your facility and equipment, track your earnings, and ensure that your employees are paid the correct amount. It’s crucial to make sure that your books are always perfectly kept in order to improve financial accuracy and efficiency.
Financial Evaluation for Chiropractic Services
As mentioned, bookkeeping aims to reconcile financial information in order to help business owners and managers make sound business decisions. Here are some questions that you may ask when evaluating your bookkeeping records:
● What are my biggest expenditures?
● How does my cash flow align with my financials?
● Where is my income coming from?
● Are there any financial gaps?
When it comes to the biggest expenditures of your chiropractic service, employee payroll should come first, closely followed by facility and equipment costs.
As for cash flow, you should be wary of how much money comes in as opposed to how much you are spending on your expenditures. From there, you will be able to determine how much your actual profit is.
As your practice grows, it’s best to monitor where your income is coming from. This might come from regular clients, or you may notice an influx of new patients coming in asking for healthcare services.
Finally, it’s best to review your reconciled financial information. You’ll determine any numbers that don’t line up and pinpoint any oddities. Through bookkeeping, you’ll address any irregularities as soon as possible and come up with ways to further improve the overall financial health of your business.
If you’re looking for a local Xero bookkeeper in Cornwall, get in touch with us today! We’re happy to help organise your business.