As a chiropractor, you are an expert in your trade. You are far more busy taking care of your clients than your financials. When it comes to tasks such as accounting and bookkeeping, you may feel a bit lost. Like most business owners, you may wonder if you are doing your books correctly. In this article, we break down some basics of accounting and bookkeeping for chiropractors and suggestions on how to make your life easier.
Doing data entry manually into a spreadsheet is old school and time-consuming. We highly recommend using cloud based software such as Quickbooks Online that syncs up your books in real-time. Not only does this save you a tremendous amount of time but it’s backed up safely in the cloud so you don’t have to worry about losing all your data or accidentally adding an extra zero to your books.
Regular Financial Checkups
Knowledge is power when it comes to your business’s financial health and making informed business decisions. Performing weekly checkups on your finances is a good way to make sure your cash flow is healthy, expenses are being paid, and money is being put back into the business. This is where automation comes into play. If you have a system in place to keep track of what is going in and out automatically, financial checkups will be a breeze.
Quarterly reviews are key to staying on track financially. At the end of each quarter, take a close look at your bookkeeping and accounting records. Look for changes in year over year revenue, late paying clients, expenses, etc… Speak with your accounting pro to discuss how things can be improved, any unforeseen tax expenses, and a plan going forward. They can help you see the big picture and prepare for circumstances in the future such as a new office space, new equipment, hiring, or an economic downturn.
Have a Check-In
After you have evaluated quarterly reviews, have a check-in on your financial health with an accounting pro. Some questions to consider:
What are my biggest expenses? There are some expenses you cannot avoid such as payroll, supplies, and rent but what about some of those subscriptions you haven’t used in a year or the vendor that keeps increasing their bill? You may want to cancel some unused subscriptions and find a less expensive vendor.
Cash Flow. It is important to look at the big picture rather than your bank account on a day by day basis. You may be growing and cash may be coming in the door, but are your expenses increasing? Do you have enough cash flow if there is a slow period?
Accounts Receivable. Unfortunately, most practices are not collecting all the money they earned. Let’s face it, it’s brutal collecting from insurance companies and patients. This is where automation and hiring a tax professional comes in so you don’t leave money on the table.
Are there any gaps? By keeping your book up to date, you will quickly have full visibility to what is going on with your finances. This will avoid any gaps and help prepare for financial circumstances.
Always be prepared for tax deadlines. You want to make sure you don’t miss any quarterly payments, 1099 deadlines, reporting, etc… Two things can help keep you on track: accounting software and your accountant. You can set up reminders on Quickbooks Online to help you stay on track or your accountant always has your back on deadlines.
Hire a Pro
You can make more money, but you cannot make more time. What is your time worth to you? Think about all the precious time you would save hiring an accounting pro. Not only would you save time but you can rest easy knowing your books will be done correctly. Come tax time, you can relax and have peace of mind knowing you will not need to spend multiple hours, even days getting your books together. This time can be spent doing the things you love with the people you love. Priceless.
Best Accounting Service for Chiropractors
At Singletrack Bookkeeping, our chiropractor bookkeeping services are designed for business owners like you. We want you to have a successful practice and not have to worry about accounting so you can focus on your trade while we focus on ours. Our solutions will keep your books current and your tax burden low. We offer all-inclusive accounting packages for every size practice. To take the next step, reach out to our expert team online.