Therefore, when setting up your accounting system one of the first and most important tasks is developing a good chart of accounts (COA). Today, several accounting software systems are available online, such as Xero, while others, like QuickBooks, currently have both online and desktop versions. Your choice depends on how many people will use the system, reporting features critical for your business model, and IT capabilities. When a client has an ill pet, they count on you to put your education and experience to use for the best outcome. A professional veterinarian focused bookkeeper will do the same with your financial records. Hire a professional to get your books in order, and your CPA–and banker–will be grateful.
For example, an accountant can guide you through depreciation calculations for medical equipment or provide advice on securing funding for expansion. This expertise is invaluable for maintaining a solid financial foundation. Veterinary clinics have unique needs, like tracking service packages, managing recurring client payments, and calculating inventory turnover for medications and supplies. Look for tools that allow customization to address these industry-specific requirements. To ensure accuracy, a business should implement routine audits, maintain detailed records of laboratory services, and cross-reference invoice data with service records.
Not having appropriate cash flow can result in a deficit in your operating expenses, and the business may not be able to recover from this state. It’s important that veterinary practice owners have a basic understanding of accounting and bookkeeping terms to avoid losses simply due to confusion about terminology. Maintaining financial health allows you to focus on providing exceptional bookkeeping for veterinarians care to animals. Regularly updating records and using bookkeeping software ensures compliance and efficiency. This helps in maintaining the financial health of the practice. Embracing technology like cloud-based accounting software enhances accuracy.
We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs. We sync seamlessly with your financial accounts and tools to keep your books up-to-date and save you the time and effort of manually uploading documents. Each month, your dedicated bookkeeper arranges your veterinary clinic’s transactions and compiles financial reports. If they require any further information from you, they will promptly make contact.
Accurate tracking ensures that revenue aligns with operational costs for the practice. Sticking with effective tracking habits helps to identify financial trends and potential issues early. Additionally, proper monitoring supports informed decision-making and long-term planning.
Best practices include itemizing all lab service costs, including supplies and equipment, on financial statements. Each transaction should be recorded at the time of service to ensure real-time financial accuracy. In veterinary practice, managing bookkeeping effectively encompasses both controlling costs and enhancing revenue streams. Veterinary practices can develop informed business strategies by using the AAHA/VMG Chart of Accounts. For example, benchmarking against industry standards becomes easier with standardized accounts.
If you’re on QuickBooks Desktop or some other accounting software altogether, we’ll get you set up with QuickBooks Online and support you all the way through. VetBooks organizes and streamlines the process and does all the practice’s bookkeeping. If you have a person doing the bookkeeping today, our team replaces that service.
This level of detail allows for more precise financial analysis and reporting. Understanding tax obligations is crucial for veterinary practices. Practices must stay updated on tax laws relevant to the veterinary industry. Proper tax planning can prevent legal issues and financial penalties. Another veterinary practice experienced a significant turnaround by restructuring their debt and optimizing their tax strategy with the help of a specialized veterinary CPA. These case studies highlight the tangible benefits of implementing effective accounting strategies in veterinary practices.