The tight labor market continues to be a challenge for practice owners in 2023. And based on current economic forecasts and published data models, there doesn’t appear to be an end in sight.
At the same time, most practices continue to be flush with patient demand, and revenues continue to be on an upward trajectory. Based on these market conditions, practices should consider outsourcing, along with shifting staff to cover critical areas that can’t be outsourced to an independent third party.
One of the challenges for practice owners is payroll and bookkeeping.
On the payroll side, it can be time-consuming and complicated. Depending on the benefits plan you offer, the various payroll items can be tedious, and any errors can lead to the need for amended quarterly or annual reports. IRS notices also seem to have become more frequent and responding to those can be time-consuming and/or expensive, depending on who you seek out to correct the matter.
Consider outsourcing your payroll function to a third-party provider. In many cases, you can utilize their platform and feel a sense of control over the process, while they take the complex quarterly and annual reporting off your hands.
Many have user-friendly apps your staff can download to have their payroll data at their fingertips. Even better, if you receive an IRS notice, just forward it to your payroll provider and they take care of it on your behalf.
On the bookkeeping side, a quality bookkeeper is very hard to find right now. Some practice owners are doing their own bookkeeping, which takes away from precious clinical time. Others are waiting until year-end to have their books adjusted by a professional accountant, which can lead to an inefficient process and lack of timely data for practice management purposes.
One option many practice owners aren’t aware of is the ability to integrate accounting technology with bank accounts, credit card accounts, and the payroll provider. When set up correctly, your accounting software can import all of those transactions automatically, and many programs also have the ability to set rules for categorizing transactions to accounts.
The result is a more streamlined and efficient process. At month-end, the reconciliation process is much simpler and less time-consuming, resulting in up-to-date data to help you actively evaluate and manage your practice performance.
Between now and the end of 2023, consider the following:
SVA is here to help you answer these questions and put your practice on the best path forward. Reach out to an SVA professional today to start the conversation.