Different approaches to practice accounting
Understanding how specialized healthcare accounting differs from traditional bookkeeping services can help you make an informed decision about your practice's financial management.
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Why comparison matters
Not all accounting services are designed with healthcare practices in mind. The financial rhythms of medical and dental offices differ from typical businesses, and the accounting approach needs to reflect that reality. Here we outline how different methodologies address practice financial management.
Traditional approach vs our approach
Traditional accounting services often apply general business principles to all clients. Our approach recognizes that healthcare practices operate under unique financial conditions.
Traditional Accounting
General business framework
Standard bookkeeping templates applied across various industries. Charts of accounts and reporting structures designed for typical retail or service businesses.
Transaction recording focus
Primary emphasis on accurately recording income and expenses. Financial statements generated from standard accounting software with minimal customization.
Reactive billing support
Billing reconciliation happens when discrepancies are noticed or when practitioners request specific investigations. Insurance claim issues addressed case by case.
Generic reporting
Standard profit and loss statements, balance sheets, and cash flow reports. Limited interpretation of what the numbers mean for practice operations.
Our Healthcare-Focused Approach
Healthcare-specific framework
Chart of accounts designed for medical and dental practices. Expense categories reflect actual practice operations including supplies, lab fees, and professional liability.
Revenue cycle understanding
Recognition of insurance reimbursement timing, patient payment patterns, and seasonal variations in practice revenue. Financial statements interpreted through healthcare lens.
Proactive reconciliation
Regular billing reconciliation as standard service. Insurance payments tracked against submitted claims. Aged receivables monitored and collection patterns analyzed monthly.
Practice-oriented reporting
Financial reports with context for practice decisions. Metrics that matter to healthcare providers presented clearly, including production per hour and overhead ratios.
What sets us apart
Our methodology developed from years of working exclusively with healthcare practices. We've built systems and knowledge that address the specific financial management needs of medical and dental offices.
Industry knowledge depth
We understand insurance contract terms, credentialing requirements, and regulatory compliance aspects that affect practice finances. This knowledge informs how we structure accounts and interpret financial data.
Benchmarking capability
Because we work solely with healthcare practices, we can provide meaningful performance comparisons. Your financial metrics are evaluated against similar practices in your specialty and region.
Integrated reconciliation
Billing reconciliation is built into our monthly service rather than offered as a separate engagement. This ensures your revenue cycle is continuously monitored and discrepancies are addressed promptly.
Practitioner communication
We communicate in terms healthcare providers understand. Financial discussions reference production, collections, and overhead rather than abstract accounting concepts, making the information more actionable.
Results comparison
The effectiveness of an accounting approach shows in the financial clarity practitioners gain and the operational decisions they're able to make with confidence.
Financial visibility
With general accounting
Practitioners receive standard financial statements but often need to interpret them independently. Questions about practice performance may require additional analysis or consultant engagement.
With healthcare-focused accounting
Monthly reports include context and interpretation relevant to practice operations. Financial performance is explained in relation to practice benchmarks and specialty norms.
Revenue integrity
With general accounting
Revenue is recorded as received. Discrepancies between billed services and received payments may go unnoticed unless the practitioner specifically requests investigation.
With healthcare-focused accounting
Systematic reconciliation identifies underpayments and denied claims monthly. Collection patterns are analyzed and opportunities to improve revenue capture are highlighted.
Decision support
With general accounting
Financial data is available but practitioners need to determine how it applies to practice decisions. Limited context for evaluating whether financial performance is typical for their specialty.
With healthcare-focused accounting
Financial information is presented with relevant benchmarks and industry context. Practitioners can evaluate expansion decisions, staffing changes, or service line additions with informed perspective.
Value and investment
When comparing accounting services, the monthly fee is one consideration. The value delivered through specialized knowledge and proactive financial management is equally important.
Understanding the investment
General accounting services for small businesses often range from $500 to $1,500 monthly, depending on transaction volume and complexity. Healthcare-specific accounting typically falls between $2,000 and $3,500 monthly.
The difference reflects the specialized knowledge required, ongoing billing reconciliation work, and practice-specific reporting. For many practitioners, the additional investment is offset by improved revenue capture and more informed financial decisions.
Return on investment perspective
Consider that identifying a single underpaid insurance claim monthly could recover several hundred dollars. Catching billing discrepancies early prevents revenue leakage that accumulates over time.
Additionally, having clear financial visibility helps practitioners make better decisions about equipment purchases, staff compensation, and service offerings. These decisions affect practice profitability beyond what accounting fees represent.
Experience and support
The day-to-day experience of working with an accounting service affects how useful the relationship becomes for your practice.
Traditional experience
- Monthly financial statements delivered on schedule
- Questions answered when you reach out
- Accountant available during business hours
- Annual tax preparation coordination
Our healthcare-focused experience
- Monthly reports with practice-specific interpretation
- Proactive identification of billing discrepancies
- Regular review calls to discuss financial performance
- Guidance on practice financial decisions
- Understanding of healthcare-specific challenges
Long-term results
The value of specialized accounting becomes more apparent over time as financial patterns are tracked and practice decisions are made with increasing confidence.
Practices that work with healthcare-focused accountants for multiple years develop clearer understanding of their financial patterns. Seasonal variations, payer mix changes, and expense trends become visible through consistent tracking and reporting.
This historical perspective supports better planning for equipment purchases, expansion decisions, and retirement preparation. Financial data accumulated over years provides foundation for major practice decisions.
Additionally, the relationship with an accountant who understands healthcare becomes more valuable as complexity increases. Adding locations, hiring associates, or changing payer contracts all create financial implications that benefit from specialized guidance.
Common questions
Practitioners sometimes have misconceptions about accounting approaches that are worth addressing directly.
"General accounting is sufficient for any business"
While basic accounting principles apply universally, healthcare practices have unique revenue cycles and regulatory considerations. Insurance reimbursement timing, credentialing requirements, and specialty-specific expenses benefit from accountants who understand these patterns. General accounting can certainly record transactions accurately, but specialized knowledge helps identify opportunities and issues specific to practice operations.
"Practice management software handles financial tracking"
Practice management systems track clinical production and billing, which is valuable operational data. However, complete financial management requires integration with accounting systems that track all expenses, reconcile multiple bank accounts, and produce comprehensive financial statements. Healthcare-focused accountants work with your practice management data alongside traditional accounting to provide complete financial picture.
"Specialized services are only for large practices"
Healthcare-specific accounting benefits practices of all sizes. Single-practitioner offices face the same insurance reimbursement complexities and revenue cycle challenges as larger practices. The monthly investment scales with practice size, and the value of proper billing reconciliation and financial visibility applies regardless of practice revenue volume.
Making your decision
Choosing an accounting approach for your practice depends on your specific needs, the complexity of your revenue cycles, and how much financial guidance you want beyond transaction recording.
Consider specialized accounting if:
- You want someone who understands insurance reimbursement cycles and can identify payment discrepancies proactively
- Your practice has multiple revenue sources including insurance, patient payments, and possibly facility fees or ancillary services
- You value financial reports with context for practice decisions rather than just transaction summaries
- You're considering expansion, associate hiring, or other significant practice changes that benefit from informed financial analysis
- You want to understand how your financial performance compares to similar practices in your specialty
Explore our approach
If you're interested in learning more about how healthcare-focused accounting might benefit your practice, we'd be happy to have a conversation about your specific situation.
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