Empower Your Clinic’s Future with Smart Financial Strategies and Precision.
Bookkeeping & Accounting represents the financial memory of your clinic and is crucial for decision making and ensuring regulatory compliance. It assists you to budget for your clinic, getting prepared for tax returns, keeping your clinic organized, and much more if your books are up to date. If you want to manage your finances and be prepared for any unforeseen shortcomings, you shouldn’t avoid doing it. Here are a few reasons why bookkeeping & accounting is essential for your business.
What is a Bookkeeping Service?
Difference between Accounting and Bookkeeping?
The practice of recording and monitoring your company’s financial activities is known as bookkeeping. The bookkeepers must regularly compile financial reports that reflect your company’s operations. These reports reveal your company’s performance and financial situation.
In addition to managing financial records, bookkeeping service consists of the followings:
- Creating invoices and tracking performance metrics
- Organizing financial records
- Keeping track of accounts owed and receivable
- Comparing the bank statements with the financial statements
- Preparing a budget or cash flow analysis
- Administrative reporting
It’s important to remember that bookkeeping services are unique from accounting services. The keeping of ongoing day to day financial transactions are referred to as bookkeeping. It ensures that records of each individual financial transaction are correct, up-to-date and comprehensive. With proper bookkeeping, the clinics are able to track all information on its books to make key operating and financial decisions. Essentially, bookkeeping is recording and tracking the financial aspects of the business in an organized way.
Accounting refers to the process of interpreting, classifying, analysing, reporting and summarization of financial data collected during the bookkeeping stage. One major part of accounting focuses on presenting the financial information in the form of financial statements (balance sheet, income statement and cash flow statement).
The accounting reports provide a quick snapshot of your company’s performance and financial situation. Every transaction or event is often recorded in two independent nominal ledger accounts as part of the double-entry bookkeeping method. In addition to these the advantages of bookkeeping and accounting are:
1. Helps in Accurate Budgeting
Both these services make budgeting much easier, as it is necessary for all businesses. Reviewing your financial resources and costs is simple when your income and expenses are organized appropriately.
Your clinic’s financial roadmap is created by your budget. With a budget in place, you can plan for future expenses associated with the growth of your business. Since most calculations involve guesswork, it is far more challenging to obtain an accurate budget if you don’t keep precise and up-to-date accounts.
2. Helps in completing Tax Returns
At the end of the tax year, businesses must file their taxes. If you have an accounting system in place, you’ll have financial data readily available to prepare the tax return, rather than to push the taxes to the back burner until we’re hit with a tax bill potentially costing thousands of RM.
Therefore, by maintaining precise financial statements over time, you’ll be able to predict the outcome of your tax requirements more accurately when Customs requests a financial statement from your business for tax purposes.
3. Keeping organized records
Missed deadlines and a few minor mistakes may occur as a result of the stress of rushing at the last minute to find a key piece of paperwork. A mistake cannot be afforded by any size of business, and regular bookkeeping can mitigate this problem for your clinic.
You may keep organized records by doing your books frequently, staying on top of things, and not waiting until the last minute. Over time, finding the data you urgently need will become much easier.
4. Provides you Extra Peace of Mind
You won’t be awake at night worrying about your books when it will be completed and organized. You can rest easy knowing that your business and financial data are prepared promptly to be reviewed without giving you any anxiety.
You may focus on other aspects of your business since your mind will be at ease to focus on daily challenges of delivering healthcare services.
Additionally, it’s always a good idea to work with an Accountant who is able to look beyond the numbers and offer a system that’s best suited for your clinic.
5. Ensures compliance with complex regulations.
In the highly regulated healthcare industry, clinics navigate numerous financial and legal requirements. Proper accounting safeguards against legal issues and fosters trust among stakeholders, ensuring clinics operate smoothly and ethically.
6. Empowers strategic resource allocation.
Effective budgeting, facilitated by accounting data, allows clinics to allocate resources wisely. This includes managing salaries, procuring essential equipment, and planning for future growth, all while prioritizing patient care.
7. Provides financial clarity.
By meticulously tracking revenue, expenses, and profitability, clinics gain crucial insights for informed decision-making. This transparency exposes areas for cost reduction, enabling clinics to optimize their financial health.
8. Optimizes the revenue cycle.
From billing to reimbursement, clinics rely on streamlined processes to minimize errors, track outstanding payments, and optimize revenue collection. This ensures a steady cash flow, allowing clinics to focus on patient care rather than financial anxieties.
9. Building Trust
Accurate accounting creates transparency and builds trust with patients, employees and investors. When clinics can show that they have proper financial records and can manage their finances well, it creates confidence and trust in the clinic’s operations.
Beyond mere numbers, accounting is a strategic force that empowers clinics to thrive. By ensuring financial health, compliance, and informed decision-making, accounting contributes significantly to the success of clinics and, ultimately, the well-being of their patients.
10. Making good decisions
Accounting provides clinics with financial information that they can use to make informed decisions. For example, if a clinic wants to buy new equipment, or hire more staff, they can rely on their financial records and make smart choices in future.
In the past both bookkeeping and accounting were manual, paper based jobs where physical records and ledgers were kept. However with technological advancement, the functions of bookkeeping and accounting are changing. Modern digital bookkeeping and accounting solutions based on cloud accounting blend certain aspects of both the roles to give clinic owners greater control over and insights into their businesses. It is crucial that clinic owners update their business accounting practices to have a clear, reliable plan for the financial stability of your practice.
JS Partners provides a wide range of accounting and bookkeeping services for newly established and existing clinics in Malaysia.
Check how https://www.jspartners.com/ can help you achieve more in your business. We are happy to provide a free consultation for your clinic.
Contact us as at 014-324 8237 / +603 -9213 1359
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