a heart and calulator

When people think about what it takes to run a medical practice, most will jump right to things like quality care and bedside manner. No one could argue those aren’t important, but many people forget about the importance of accounting services for doctors and dentists. A medical or dental practice is still a business and has to manage expenses, profits, and payroll to be successful. GJR Consulting is an accounting firm in California that understands the financial challenges of the healthcare industry and is prepared to help.    

Accounting Services for Doctors Are Essential

The most direct way of explaining the importance of accounting in the medical or dental industries is to look at the cycle of revenue management. Without accurate revenue management, there’s no money for new medical equipment or payroll for the staff at your medical practice. Your financial statements need to be maintained and routinely checked for accuracy. Without this service, you won’t know how much money you have to spend or how much you can expect in the coming years. 

Money in the Healthcare Industry Gets Complicated Quickly  

The majority of payments that dentists and doctors receive in the United States come from the insurance companies that manage the health insurance of their patients. This process complicates your revenue collection, and you’ll see the same accounting issues for dentists. The entire healthcare sector depends on insurance to pay the bulk of their bills and keep their doors open.

The good news is GJR Consulting is here to help you manage this cash flow. Without accurate financial statements, you can’t expect those insurance companies to pay their bills. Even when everything is accurate, there can still be issues with receiving payment. That is why you need to be equipped with the best accounting services possible. With rock-solid bookkeeping, at least you’ll know your figures are correct when you’re dealing with conflicted insurance payouts.     

Issues Healthcare Accounting Is There to Prevent

Part of your practice management needs to focus on the crucial role accounting plays in the organization’s success. Even with the most medically experienced staff, they can forget or confuse vital parts of the financial process. Common issues like this include:

  • Insufficient Staff Communication: Does your staff understand the importance of their role in the financial process? For everything to work properly, you need everyone to understand their role. Taking the time to explain this to your staff can make a real difference.

  • Inadequate Training: It is likely that even the most aware medical staffs are still performing a wide variety of tasks every day. You cannot expect them to know everything they need to for medical tasks and bookkeeping at the same time. You can work with GJR to train your staff on software like Quickbooks for your practice.

  • Reactive Planning: There are going to be bumps along the road. Using reactive strategies is like tying one hand behind your back. You need an accounting firm on your side working proactively to stay ahead of financial issues and establishing a stable base for services like tax preparation. You can fall back on your records when questions arise because you’ll be able to trust the work of your accounting partner.   

The services at GJR Consulting can prevent many of these issues with our tax planning and bookkeeping training practices. We can help new businesses set up a strong foundation for the future, and we can aid existing practices with their recurring issues. To learn more about how we can help your healthcare practice, call us today.

The cannabis industry needs CPAs. Why? It’s a rapidly growing industry, with an economic impact that’s projected to react $70 billion by 2021. However, it’s also one of the most tightly regulated industries in the country, since cannabis is a Schedule I controlled substance, making it illegal under federal law, even though it has various levels of legality in over 30 states.

Cannabis companies need qualified, experienced CPAs to manage their taxes and accounting, as well as their business structuring and inventory management, in the face of strict federal and state regulations. Without professional accounting services, cannabis businesses have trouble staying afloat, since the IRS often targets their finances and bookkeeping to find ways to fine or penalize them, or even shut them down.

If using your accounting skills in the cannabis industry sounds like an exciting challenge to you, here’s what you should do to become a California cannabis CPA:

Educate Yourself

To work with cannabis clients, you need to teach yourself about the cannabis industry. Learn about Section 280E of the Internal Revenue Code, and how the IRS has been enforcing it recently. Make sure you understand Cost of Goods Sold (COGS), which can be used to help cannabis companies claim tax breaks. Find out about political and tax issues surrounding cannabis, including recent court cases. Learning as much as you can about the cannabis industry and effective accounting methods for it is the best way to make yourself a solid resource for any cannabis CEO.

Connect With Other CPAs

As a CPA, you know what your accounting strengths and weaknesses are. That’s why you should reach out to other CPAs as you work your way into cannabis accounting. Gathering partners and colleagues will help you offer well-rounded accounting services to cannabis companies. If tax planning and tax preparation are your strengths, you should partner with a CPA who has strong controller skills to balance things out. If you connect with enough of your fellow accountants, you can start your own cannabis accounting firm.

Reach Out to Cannabis CEOs

Whether you’re acting independently or as part of a cannabis CPA firm, you should begin joining Facebook and LinkedIn groups for cannabis startups. Once you’re a member, begin reaching out to cannabis CEOs with targeted messages and emails. Make sure your messages address pain points that would be important to a cannabis CEO, like tax planning, cash flow management, and compliance measures. State your qualifications and explain how your proposed solutions can help them navigate the complex space of cannabis accounting.

Find an Industry Niche

Carve out your own cannabis space with your accounting and industry knowledge. You could focus on accounting for medical dispensaries, or for retail storefronts, or you could focus on accounting for an entire supply chain. Whichever path you choose, stick to it and become as knowledgeable and experienced in that niche as you can. Finding a niche will allow you to develop expertise, which will help you serve your clients to the best of your ability.

California Cannabis CPAs You Can Count On

At GJR Consulting, we have placed ourselves on the cutting edge by offering cannabis accounting services. We push our work to a place where few accounting firms will go because we understand that cannabis is a legitimate industry, and the companies within it deserve access to top-quality accounting services. If you are interested in our cannabis accounting services, contact us today.