Find everything you need to know about deploying the best accounting software for healthcare insurance companies or HMO with core features you should expect.
The business of healthcare insurance popularly known as HMO in Nigeria provides insurance coverage to individual or staff of an organization for a monthly or annual fee. Most organizations see it as a cost-effective way to offer healthcare benefits to employees in case of medical emergencies.
If you are wondering what HMO means, it is an abbreviation for health maintenance organization – these type of medical insurance works with hospitals, and healthcare centres to provide immediate attention to its clients – it’s on this ground that they advise individuals to select clinics that are close to them for easy of reach during emergencies.
Request For Our Accounting Software ServiceFor over 5 years, we have implemented QuickBooks and Sage 50 for several companies under Retail, Manufacturing, Oil & Gas, Real Estate & Construction, Travels, Hospitality,Legal, Co-operatives, NGOs, Financial & Service Sectors.
- Mbaire Services Nigeria Ltd(Construction)
- Chisco Transport Limited(Transport)
- Lounge38(Hotel and Bars)
- CTRL System Technologies Limited(Procurements)
- Aristokrat 360 Limited(Creative & Media Agency)
- Alpha Pharmacy (Health Care & Supermarket)
- Ericsson Nigeria Multipurpose Co-operative Society (Co-operatives)
- Fastanet Limited (ICT and Security)
- Britanic Maritime (Maritime Service)
- CEO Business Limited (Salary Advance, Credit Finance and Loan)
- OneHealth Pharmacy (Health Care)
- Widdi Pharmacy (Health Care)
- Olpharm Pharmacy (Health Care & Distributor)
- Hawkes Legal(Legal)
- Kantessa Limited(Fashion Store)
- OPI Nigeria International Limited (Oil & Gas Servicing)
- Zenilum Company Limited (Oil & Gas Servicing)
- Extol Security Services Limited (Security and Guard Services)
- Lilygate Hotel(Hospitality)
- Benstel Nigeria Limited(Bottle Water Production & Distribution)
- Paraclete Nigeria Limited (Bottle Water Production & Distribution)
- Lakia Construction Limited (Real Estate Development)
- Josien Holdings Limited(Distribution)
- Aisha Buhari Foundation (Futured Assured)(NGO)
- Doheney HR Services(HR)
- Insights Limited(Health Consultant)
- Biddel Oil & Gas Limited (Oil & Gas)
- System Intelligenz Limited(Contractor)
- MagTech Information Security (IT)
- Infusion Cakes Nigeria (Bakery)
- SCERA Nigeria (NGO)
- M.D School (Private School)
- Travel Options (Travels)
- Logos Travel Support & Solutions Ltd (Travels)
- Melcurt Nigeria Limited (Oil and Gas Engineering and Pipeline Construction)
- Starlight Nigeria (Retail)
- Temple Private School (Education)
- Value Mart Supermarket (Retail)
- Transweb Bureau De Change (Financial Service)
- Vektro Food Limited (Manufacturing & Retails)
- Orient Petroleum PLC (Oil & Gas)
- Plus More
Either way, you look at this business model, they are not different from insurance companies that provide coverage against eventualities beyond health – cars, property, business, theft, fire, etc – which means that we can safely adopt the system of accounting for an insurance company to run a healthcare Insurance organization or HMO.
One of the best accounting software you can use to run your ledgers is QuickBooks. Beyond the retail that we are used to, QuickBooks provides the flexibilities of customizing your company file to align with a typical healthcare insurance outfit.
If you don’t want to commit to an annual subscription, the desktop version of QuickBooks is here to give you the same feeling until you are ready to migrate to the cloud.
Setup of Accounting Software for Healthcare Insurance – Best for HMO
The first step to getting started with an HMO is to build a chart of account that categorizes all transactions into income, expenses, assets or liabilities. The income side covers insurance premium payments and earned, investment and interest income while the expenses section is divided into direct expenses – the amount paid to the medical centres or health care professionals for services rendered and indirect expenses; office suppliers, staff salaries, repair and maintenance. Other account types like fixed assets, payables aren’t left for complete financial reporting.
One important liabilities to keep track of is Premium that remains unearned – Recognizing premium as income when they aren’t earned isn’t a good practice in accounting, that’s why your chart of account must be properly customized by someone with industry experience.
Clients and Receivables
Depending on whether you have established healthcare insurance or just starting out, keeping a tab with your client’s data is not an option but a very important exercise. This will help you see clients that are yet to pay their premium so you can follow up via email, or any reliable communication channel.
The receivable side of QuickBooks lets you see all the clients you provide healthcare insurance cover to and expected cash flow for the month, quarter or year. You can also explore the ageing summary to overdue premium so you can ascertain the number of clients your contractual obligation didn’t cover due to breach of the agreement.
Vendors and Account Payables
Your vendors or service providers are medical centres or clinics that provide healthcare services to the staff of the organization under your HMO program. QuickBooks accounting software helps you see the bills sent by your medical partner and how much is owed so you can plan your cash outflows. While this type of partner is the most important category of service providers to keep in touch with every time, you still need to have a record of auxiliary providers like IT and office equipment manufacturers, contractors, etc.
Lead Tracker and Sales Rep
Every healthcare insurance company (or HMO) is in constant search of new clients to onboard – you can either adopt the cold calling method, email marketing or online advert but how do you track the leads generated so far, and what percentage of this prospect buys into your insurance plan? The lead centre in QuickBooks is all you need to ensure you don’t lose out on high-converting clients.
It provides a CRM-like features to help you see the trial of conversations you’ve had, appointment schedules, notes and whether the client is a hot or warm lead – from there, you can convert them to paying customer by migrating their profile to the customer section of the software, then proceed to create invoice and tag it to the sales representative or marketer that generated such sales. Alternatively, you can also use the various social media platforms or advert channels available as revenue driver and at the end of the day, week or month, generate a revenue report that shows actual cash inflow and where you found them for marketing decision.
Every cash inflow and outflow will be properly accounted for if you have utilized the banking section of QuickBooks. From payments to vendors or service providers to receipt from clients and transfer between banks (local or forex related), the accounting software offers robust features needed to achieve seamless reconciliation of all your bank balances on a monthly basis.
Multi-Users Access and Authorizations
In a situation where you require multiple access to the company’s account by a different department, the software can be switched to multi-user mode; this will give all the authorized users a direct log on so they can post transactions from their individual desk.
This also depends on your networking infrastructure; LAN or Cloud. The latter allows you to deploy a remote server, host the QuickBooks on the cloud with a dedicated or shared IP address while the local area network requires your in-premise.
You can also set user roles and permission which lets you own the system, and set high-level security over users’ activities. For instance, you can assign the role of recording cash or cheque payment from clients but limit the same user from deleting or modifying transactions. He/She may be required to approach or request authorization before such transaction can be changed, that’s if it’s a justifiable error.
The interesting thing about QuickBooks is that even if you give users unrestricted access, the Audit trial will track newly posted transactions, modified and deleted transactions, including the exact day, time and specific user tp be held accountable if the need arises.
The fact that you can generate real-time report of your healthcare insurance activities makes QuickBooks a top choice among users of accounting software.
Let’s start with your patient records; the receivable reports show your outstanding balances and the name of the clients that are tied to such transactions. You also have the payable to see all the healthcare cares or medical centres you are yet to pay for services rendered while the profit or loss lets you see the position of your organization. And if you are generating more money than you spend, then this is a green light otherwise, you need to investigate your expenses to avoid going bankrupt.
Other financial reports you can generate are:
- Individual account ledgers.
- Trial balance
- Statement of financial position
The idea shared here is based on our experience with healthcare insurance and HMO clients. If you’d like us to have a meeting with you and how you can deploy accounting software for your medical insurance organization, reach out to our business support team at firstname.lastname@example.org, email@example.com or call 08105090001.
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