Bookkeeping and tax for medical businesses • Personal tax returns for individuals

Call or Text: (312) 772-3170

My practice management software shows one revenue number and my bank shows another. Which is right?

Both numbers are telling you something real, but neither one gives you the complete picture.

Your practice management system likely tracks charges. That’s what you billed for services. Your bank shows collections. That’s what actually arrived. The gap between them is not an error. It’s the nature of running a practice where payment rarely equals what you charged, and payment almost never arrives on the same day as the service.

There are really three numbers you need to understand. First is what you charged. This is the full fee for every visit, procedure, or treatment. In a therapy practice billing insurance, you might charge $150 per session. In a med spa, you might charge $500 for a treatment.

Second is what you’re actually owed. Insurance adjustments, contractual write-offs, and denials reduce the charged amount to what payers have agreed to pay. That $150 therapy session might become $95 after the insurance adjustment. The $500 med spa treatment might be paid in full if it’s cash pay, or partially if the client used a prepaid package.

Third is what you’ve collected. This is what actually hit your bank account. It arrives days, weeks, or sometimes months after the service, depending on whether you’re collecting at checkout, billing insurance, or invoicing a third party.

Your practice management software usually tracks the first two numbers. Your bank account only knows about the third. A CPA for medical businesses understands this gap and knows how to reconcile both systems into one clear financial picture.

If you build your books entirely on charges, you’re overstating what you’ve actually earned. You show revenue that might never arrive because of adjustments, denials, or clients who never pay. This can make the business look healthier than it is.

If you build your books only on bank deposits, you lose visibility into what’s still owed. You can’t see aging receivables, you can’t spot collection problems early, and you can’t tell whether your billed revenue is trending up even while collections lag behind.

Proper monthly bookkeeping reconciles both stories. The books track actual collected revenue as it hits the bank, while also tracking receivables so you know what’s still out there. Your financial statements reflect real revenue you can spend, and you maintain visibility into what you’re still waiting to collect.

Hunter Green CPA does not do your clinical billing or coding. That’s a separate function that feeds information into the books. But the books themselves need to be reconciled to cash reality, and that’s where the accounting work comes in.

If you’re seeing a persistent gap between your practice system and your bank and you’re not sure which number to trust, that’s a sign your bookkeeping setup may need attention. Book a consultation and let’s get your numbers telling one clear story.

Your Trusted CPA

Next Step:
A Short Conversation

Tell us about your business and what you need help with. We'll ask a few questions, explain how we can help, and tell you exactly what it will cost.

More Questions

Cash basis or accrual: which fits a medical business?

Cash basis is simpler and works for many small practices, but insurance reimbursement lag and prepaid packages mean medical businesses often need accrual-style visibility. Many owners start with cash-basis books while tracking receivables and package liabilities separately.

Read answer

What changed with 1099 rules, and what do I file this January?

The $2,000 reporting threshold applies to payments made in 2026, not 2025. This January, you still file 1099s for contractors who received $600 or more. The first filings under the new threshold happen in January 2027.

Read answer

Which monthly reports actually matter for my business?

The core set includes the profit and loss statement, balance sheet, and cash movement report. Depending on your business, you may also need receivables aging and margin by service line to see the full picture.

Read answer

Everyone in home care argues about 1099 versus W-2 caregivers. What is the truth right now?

Hourly caregivers whose schedules and work an agency controls generally look like employees under the classification tests that matter. The cost of misclassification is severe, including back wages, penalties, and potential personal liability for agency owners.

Read answer

I have a feeling my old returns left money on the table. Is it recoverable?

A prior-return review sometimes finds missed deductions, credits, or elections that can be recovered through amended returns filed within about three years of the original deadline. Beyond that window, any findings become forward-looking fixes rather than refunds.

Read answer

Does the QBI deduction still exist, and do I qualify?

Yes, the 20 percent qualified business income deduction is now permanent. But healthcare businesses are classified as specified service trades, which means income thresholds determine whether you can claim it.

Read answer

Hunter Green CPA provides bookkeeping, tax preparation, and tax strategy for medical business owners across the United States. Alongside its business services, the firm prepares personal tax returns for individuals and families. Based in Oak Park, Illinois and led by Mason Hunter, a CPA with 10 years of tax experience and a background in corporate tax management.

  • Forest Park Chamber of Commerce & Development member badge
  • Oak Park-River Forest Chamber of Commerce member badge
  • Better Business Bureau badge

© 2026 Hunter Green CPA