Medical accounting, or healthcare accounting, refers to the customised accounting services that accounting firms provide to doctors and medical practitioners to streamline their accounting, tax, and compliance.
Medical professionals’ accounting is unique and challenging due to the nature of their income, transactions, tax planning, and more.
Doctors work in more than one place. They might work full-time in hospitals, own a private practice, or work in hospitals or clinics. The accounting approach for each income stream differs from the others.
If a doctor needs to assess his financial health, he should analyse his financial statements, including the balance sheet, income statement, and cash flow.
This helps them make informed financial decisions.
Also, the number of transactions in the healthcare industry is enormous. From insurance, payroll, vendor invoices, medical supplies, rent, utilities, and refunds, the accounting for this industry is particularly challenging.
The financial data provided by accounting firms must be accurate and compliant to maintain accreditations and other practice management standards.
The high income of medical professionals puts them in a high tax bracket, and the specific incentives and tax deductions in the healthcare industry require expert tax planning advice.
The accounting firm that handles healthcare accounting services should handle the patient data, such as names, treatment codes, insurance and payment details, with utmost care.
While medical professionals grow not by the scale of their business, but by the empathetic care they provide, this expansion requires tax restructuring and a review of tax planning strategies.
Sundaram Business Services has been a consistent back-office support provider to various accounting firms, providing expert medical and healthcare accounting services to leading medical professionals across Australia.
Sundaram Business Services is a business process outsourcing company with offices in Australia, India and the UK. With over 20 years of experience in the Australian market in providing outsourced teams to Australian businesses across Accountancy, Portfolio Management, Self-Managed Super Funds, and Mortgage Broker Support, our business becomes an extension of yours.
