In this post, you will learn how accounting software works for healthcare and why hospitals prefer QuickBooks accounting software
Medical centres still rank high in the corporate environment with the busiest staff. This is a clear discovery that is not unconnected to the steady influx of patients who are looking for a lasting solution to their health challenges. At times, medical directors get so busy that they pay less attention to finance, cash flow, and the company’s overall performance. While some use Excel spreadsheets to record and track payments made by their patients, others use the same file containing the history of patients’ health status to record the amount due, amount deposited and balances. I even noticed that only less than 1% of accounting officers in medical centres can accurately generate a receivable report due to unorganised transactions’ history.
This explains why medical centres, as a matter of urgency, need to quickly upgrade their accounting system to a better platform like QuickBooks for efficient and effective transaction recording. There are different areas where accounting software can improve the operation of a medical centre; this ranges from the receivable side which I have earlier explained to more complex areas such as inventory management, invoicing, payments, banking, reporting and timely decision making.
Starting from the Inventory side, records prove that medical centers are big time buyers of pharmaceutical products which they often use in treating patients, and as such, they need to supervise and monitor the flow of goods, medical products, its’ usage and quantity on hand at any given time such that when the accountant or store keeper is being called to present a detailed and updated report of inventory activities, it would be available in lesser time than when the conventional accounting method is used.
For drugs or products purchased from local or foreign vendors, there is a simple workflow that takes you from the point of sending “POs” to receiving inventory into the store and making final payment in Naira or US dollars. And as these products are used, QuickBooks has a material adjustment window for recording every usage on a daily, weekly or monthly basis along with a corresponding cost of sales account to track their value on the profit or loss account.
Another vital part of your account is the Invoicing Window which is designed to track all income earned from medical services rendered to patients, while using “Receive Payment” to record payment progress so far. This will greatly improve the way report on patients and their outstanding balances are prepared and presented.
The Banking Section lets you monitor all cheque payments, customer deposit/transfers from/to your bank account with a “Use Register Window” serving as a bank transactions summary statement for you to make comparison of your actual bank balances. If there is any difference, you can initiate a reconciliation via the “Reconcile Window” to track missing figures like bank charges, interest income, un-presented cheques, uncredited cheques or transaction commissions.
The above are some of the deliverables of the QuickBooks Accounting Software customized for medical centers. You can also connect with our client support team, on 08105090001, 08084219399, for more questions about getting your accounting system right and improving the accuracy of your financial report.