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

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The caregiver shortage is driving my wages up. How do I protect my margins?

The wage pressure you’re feeling isn’t going away soon. The Bureau of Labor Statistics projects home health and personal care aides among the fastest-growing occupations through 2032, but the workforce isn’t expanding to match. That gap means competition for caregivers will keep pushing wages up for the foreseeable future. The question isn’t whether you’ll pay more, but whether your financials are set up to handle it.

The first defense is visibility into margin by client. Not overall revenue minus overall costs, but knowing which clients you’re making money on and which ones you’re losing money on. An agency might look profitable overall while carrying several cases that lose money every single week because the rate was set two years ago or the care needs escalated beyond what the rate covers. You can’t protect margins you can’t see.

Margin per caregiver hour matters too. When wages rise 15% over two years but your hourly billing rate only rose 5%, the math doesn’t work. Some agencies respond by negotiating rate increases with private-pay clients and moving away from low-reimbursement payer sources. Others tighten up scheduling to reduce unbillable travel time between clients. Both approaches require knowing where you actually stand financially, case by case. Medical practice accounting that tracks these metrics monthly gives you the visibility you need to act before margins erode.

Turnover and training belong in your financials as real costs. Industry turnover often runs 40% to 80% annually in home care. Every departure means recruiting, onboarding, and training a replacement, plus the hours you pay experienced staff to cover gaps. If you treat those as random HR headaches rather than predictable business expenses, they never show up when you’re evaluating whether a client or payer relationship is worth keeping.

Overtime concentration is another place margin disappears quietly. If one or two caregivers rack up most of the overtime because they’re covering call-offs or filling gaps, you’re paying time-and-a-half for hours that should have been straight time. Visibility into where overtime lands helps you decide whether hiring another part-time caregiver would cost less than the overtime it would eliminate.

The numbers behind all of this should be visible every month, not once a year when the tax return gets done. Full-service bookkeeping that tracks margin by client and keeps payroll costs visible gives you the information you need to reprice underwater cases, exit relationships that don’t work, and make wage increases sustainable. If you’re ready to get your financials organized this way, book a consultation with Hunter Green CPA.

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Can I hire you for one project before committing to monthly service?

Yes. Standalone project options include catch-up bookkeeping, tax returns, payroll setup, tax strategy, and audit support. Each is scoped and priced on its own with no ongoing commitment required.

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Do the new overtime tax rules affect me as an employer of caregivers?

Yes, you have new reporting duties starting with 2026 W-2 forms. The law allows employees to deduct qualifying overtime pay, but employers must track and report that overtime precisely.

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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.

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Can one person handle both my business return and my personal return?

Yes, and for pass-through owners it's practically necessary. Your business return generates a K-1 that flows directly onto your personal return. Having one CPA see both sides means better coordination of salary, distributions, and deductions.

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Plenty of bookkeepers are cheaper. What am I paying for with a specialist?

A specialist already understands your industry's accounting and doesn't learn on your dime. Add CPA-level tax work in the same seat and the price difference often returns itself in avoided mistakes and tax savings.

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What financial setup does a home care startup need before its first client?

Before taking your first client, a home care agency needs an entity with a deliberate tax election, separated business banking, payroll configured with defensible worker classification from hire one, and bookkeeping running from month one. Starting clean costs a fraction of cleaning up later.

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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.

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