Questions
Straightforward answers to the bookkeeping, payroll, and accounting questions that come up when you're running a business.
How do I set up bookkeeping for a medical practice with multiple LLCs and entities?
Each entity needs its own QuickBooks file with a consistent chart of accounts across all of them. Intercompany transactions like management fees, shared staff costs, and rent between entities must be tracked carefully and eliminated when you pull consolidated reports.
Read answerWhat is the best way to track intercompany transactions between healthcare entities in QuickBooks?
Set up Due To and Due From accounts in each entity's QuickBooks file to log every payment made on behalf of another entity. QuickBooks Online lacks built-in intercompany elimination, so you'll need manual journal entries and monthly reconciliation between entities.
Read answerDo I need separate QuickBooks files for each medical entity or can I use class tracking?
For healthcare groups with distinct legal entities like LLCs and professional corporations, separate QuickBooks Online files are generally the better choice. Class tracking in a single file can work for two or three entities but creates problems as you grow.
Read answerHow should a nephrology or dialysis practice handle bookkeeping for multiple clinic locations?
Each clinic location needs its own set of books with a standardized chart of accounts so you can produce location-level P&L reports. Shared costs like admin, billing staff, and EMR systems require documented allocation methods that hold up under audit.
Read answerWhat bookkeeping challenges are unique to medical practices compared to other small businesses?
Insurance reimbursement lag, the gap between charges and collections, and the cash vs. accrual accounting decision create bookkeeping complexity that most small businesses never deal with. Medical practices also face provider compensation tracking, regulatory compliance costs, and multi-entity structures.
Read answerHow do I reconcile insurance reimbursements with patient charges in QuickBooks?
Record every service at the full billed amount, then post insurance payments alongside contractual adjustment line items. Tracking the gap between charges and collections gives you your net collection rate, which is one of the most important financial health indicators for any medical practice.
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