How to Control the Finances of a Medical Clinic

How to Control the Finances of a Medical Clinic

Taking care of your clinic’s finances is just as important as taking care of your patient’s health. Financial control is a vital issue that requires continuous monitoring to ensure that everything complies with the entire structure of the company.

If financial management is not taken seriously, the longevity of your clinic will be at serious risk. To maintain excellent service in your business, you must have efficient financial management and understand healthcare accounts receivable management.

Below we present you 4 tips that can help you organize your clinic management.

1. Make Cash Flow

All companies need cash flow, and in the case of clinics, it is no different. The professional responsible for financial administration needs to dedicate special care to the clinic’s expenses, for example, with structure and personnel.

It is essential to record all financial transactions in the business, even small day-to-day expenses, which are generally ignored. These specific expenses can make a big difference in cash when closing the account.

Learn how to organize and control all financial transactions, either through a traditional Excel spreadsheet or through an automation tool customized for better understanding.

2. Separate Accounts Payable and Receivable

Another excellent method of financial management is the separation of accounts payable and receivable in different control sheets. This practice will allow the visualization of the costs of the clinic, thus allowing analysis on how to reduce them or eliminate them if they are superfluous.

Pay attention to deadlines as delays in accounts payable usually result in interest and fines.

3. Maintain A Reserve Fund or Provision Resources

Companies may face moments of crisis due to internal factors, such as the breakdown of some critical equipment, and external factors, such as an economic crisis in the country.

Therefore, a financial manager needs to remember to make money reserves. In case the clinic goes through a financially difficult moment, the clinic will suffer less impact if it has financial resources reserved for those moments.

4. Do Not Mix Personal and Clinic Accounts

The company’s cash is neither its portfolio nor its current account. You should not use money from the clinic when you need to make ends meet. This practice disrupts the company’s financial control and can hide important financial information.

This money could be invested in other investments, such as the purchase of equipment or the hiring of personnel. Likewise, do not use your finances to meet the demands of the clinic, as this will also disrupt financial control.

5. Planning

Set tangible financial goals that can be achieved. Proper financial planning requires that expense recording and billing forecasts be methodical. Observing these numbers and visiting the schedule with some frequency will allow the doctor to make a proper assessment of the clinic’s growth.

Do you already use any of the above methods to control your clinic’s finances? We would love to hear your thoughts in the comments.