Did you know? Due to the lack of efficient division of labor, around 80% of medical bills experience errors. And this creates intense episodes of bankruptcy for both the patient and healthcare personnel.
To reduce the pain, the medical industry switched to Electronic Medical Records, which proved helpful. However, they weren’t efficient for generating invoices, record management, etc. So, to combat such issues, software like QuickBooks was utilized to ensure transparent medical accounting.
But are QuickBooks a must-have in the medical industry? Read on to know.
What is QuickBooks?
Introduced in 1992 by Intuit, QuickBooks is accounting software for small businesses. It is used for tracking, invoicing, billing, and reporting finances in the most subtle way. So, due to its efficiency, you can manage your financial bookkeeping with lesser inputs, errors, time, and energy.
The Role of QuickBooks in the Healthcare Industry
The advancement of QuickBooks with skyrocketing evolution in its features can benefit the medical industry in more ways than one. From clinics to hospitals, pharmacies, and pharmaceuticals, each and every niche can utilize its features according to its requirements.
Some noticeable ways QuickBooks can help the healthcare industry are discussed below:
1. Track Your Inventory
The medical inventory system is responsible for tracking and recording supplies stored, received, and distributed at the site. For efficient recording, you need to record the product as soon as it’s supplied. So, to do that at a click of a button, you need good inventory management software like Quickbook.
Suppose a mother gets discharged after delivery and is supplied with maternity pads. QuickBooks’ inventory management feature will automatically deduct them from the inventory.
In this way, you can monitor goods levels in the dashboard and reorder the quantities as soon as they are utilized.
As a medical assistant officer, you are free from manual counts that cost you time and errors.
2. Manage Medical Billings and Invoices
We’ve already discussed how billing errors are rising and how manual methods influence them. So, how does QuickBooks reduce their chances?
Here’s what they do:
- QuickBooks help accept online payments, send custom invoices, and schedule appointments with a nick.
- They offer secured, cloud-based payment services for timely payments.
- The auto-billing feature helps you set up billing schedules for your patient. This way, the payment for each scheduled appointment is automatically released through secured credit card methods.
- As healthcare personnel, Quickbooks help you set automatic payment reminders for your patient and staff so that no fingers are pointed.
Quickbooks offers efficient verification, balance, and cheque printing quality. These factors benefit patients in healthcare insurance programs like Medicare greatly.
3. Boost HR
On average, a public hospital has over 80 employees. With that number, it’s challenging for the individual practitioner or HR to manage and create timely payrolls. With QuickBooks, you get payrolls made in less than 5 minutes rather than the average two days with manual methods.
It acts as an HR and payroll system simultaneously and allows you to:
- Achieve correct paychecks at the right time without the hassle of logging hours manually.
- Get automated tax payments and payroll taxes filed from the annual data recorded in this accounting software.
- Manage and overcome HR-related issues at a call and professional customer experience online.
- Auto-track employee expenses and duty hours.
- Automatically fulfill reimbursement and tax deduction for medical resources.
For example, when a medical house officer performs his duties, you must record the education, accommodation, transport fee, etc. Here, QuickBooks is a quick medium for tracking and noting details about each asset and expense for an error-free reimbursement.
4. Leverage Financial Reports
Accurate financial reporting is very crucial in the healthcare industry. It allows the team to access and understand the highs and lows in revenue. This makes Quickbooks even more relevant.
The software lets you draw financial statements anytime. The types of reports include:
- Income statement
- Cash flow summary
- Balance sheets, etc.
And in this way, QuickBooks reduce the accounting efforts in the healthcare sector, where every second is precious.
So, real-time reporting allows a doctor to quickly analyze the worthy services, equipment, and available cash to purchase that resource.
5. Evaluate Costs and Budget
Regarding monitoring finances, having a budget that prevents future financial setbacks and crises is crucial to the healthcare sector. Why? Because with a precisely calculated budget, you can amplify your expenses according to your needs.
QuickBooks offers an Inventory Valuation Summary Report, which gives an idea of the total inventory cost. It helps you compare the cost for each supply so that you can make amendments and negotiations with the vendors for medical supplies.
Moreover, QuickBooks categorizes each expense systematically. Thus, it gives a transparent and user-friendly experience for better budgeting.
6. Avoid Tax Penalties
Besides efficient tax filing, Quick Books provide a secured system to avoid tax penalties. For example, for elite customers, QuickBooks will resolve filing errors and pay your tax (up to $25,000).
Since they partner directly with the IRS (Internal Revenue Service), your tax penalties are delegated in safe hands. With Quickbooks, you can quickly run the necessary reports to identify errors for reconciliation.
How Can Healthcare Professionals Use Quickbooks?
The above-mentioned points indicate learning and implementing Quickbooks is vital for all, including healthcare businesses. And learning to use this software won’t be too difficult for anyone, especially medical professionals.
Mentioned below are some easy ways to learn using QuickBooks:
Intuit offers a learning site for viewers to access free tutorials with tasks. The package consists of short (around three minutes long) videos with webinars based on learning QuickBook functions.
QuickBooks Learning Center
It’s in the help menu of the QuickBook program and offers quick learning through modules, online portals, and PDF guides.
It’s another feature provided by the Intuit site for giving advance training to both desktop and online QuickBooks users. This feature allows you to:
- Sign-up to create custom schedules
- Live lessons for classroom-like experience
- Get specific instructions for payroll/accounting basics
But unlike the first type, this type of training is paid.
QuickBooks smartly blends with the modern-day digital settings in the medical industry. The tool is efficient, has useful features, and offers error-free results It is an all-in-one medium for simultaneously providing HR, payroll, and financial services.
However, despite the high success in the medical department, QuickBooks can never entirely replace a Healthcare Accountant. Therefore, it’s best to learn QuickBooks basic skills and countercheck with a human account for better accuracy.