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

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Insurance pays my therapy practice months after the session. How do books stay honest through that?

The bank balance on the day you check it won’t tell you how your practice is actually doing. You delivered sessions last month and the month before, but the money hasn’t arrived yet. Some of it might never arrive. Honest books account for this by tracking revenue at multiple stages, not just when cash hits the account.

Track three distinct numbers for every session. First is what you billed. Second is what you expect to collect after contractual adjustments. Third is what you actually collected. These are different amounts. If you bill $150 for a session but your contract with that payer allows $110, you should expect $110 after the patient’s portion. When the payment finally arrives, it might be the full expected amount, or it might be less because of a partial denial, or it might be zero.

Your practice management system tracks billed amounts well. The gap is usually in tracking expected versus collected and understanding why they differ. Your books should show these as separate figures so you can see the true state of your revenue at any point in the reimbursement cycle.

Age your receivables by payer. Sort unpaid claims by insurance company and by how long they’ve been outstanding. A claim sitting at 30 days is normal. A claim sitting at 90 days is a problem. If one payer consistently has claims stuck at 60 or more days while others pay in 30, that payer is quietly costing you money through cash flow drag. Bookkeeping for medical businesses should surface this pattern clearly rather than hiding it in one big receivables balance.

Reconcile your practice management system to the bank monthly. Pull what the system says you should have collected last month. Compare it to what actually deposited. The difference tells you something. It might be timing for payments in transit, or it might be denials and write-offs that need investigation.

The real payoff is visibility into which payers are quietly hurting your practice. Some payers deny more claims. Some take longer to pay. Some require more rework. Full-service bookkeeping that tracks all of this lets you make informed decisions about which payers are worth staying in network with and how to manage cash flow through the lag.

Hunter Green CPA handles the accounting side, not the claims themselves. We keep your books accurate through the reimbursement cycle and show you where money sits at each stage. The billing and coding work stays with your practice or your billing company. If your books don’t currently track revenue this way, book a consultation and we can talk through what it would take to get there.

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More Questions

How long do I need to keep receipts and financial records?

Keep most business financial records for seven years to cover the IRS's standard audit window and extended periods for income understatement. Payroll records need at least four years. Cloud bookkeeping with digital receipt storage makes retention automatic rather than a filing cabinet project.

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How big is the med spa opportunity really, and what does it mean for my finances?

Industry surveys put average med spa revenue around $1.4 million with over ten thousand locations nationwide. The opportunity is real, but so is the financial complexity that comes with injectable inventory, prepaid revenue, provider commissions, and often multi-entity structures.

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The IRS sent me a letter. How bad is this?

Probably not as bad as you think. Most IRS letters are notices about a specific question or discrepancy, not audits. Even audit letters describe a defined process with steps and deadlines that can be managed.

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

The caregiver shortage is structural, meaning wage pressure will persist. Financial defenses include knowing margin per client and per caregiver hour, repricing underwater cases, accounting for turnover as a real cost, and watching overtime concentration.

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I inject on weekends and run the spa around my hospital shifts. What does my tax picture look like?

Your W-2 income sets your bracket, then spa profit stacks on top at that rate. You face self-employment tax, quarterly estimates, and potential QBI phaseout as a high earner in a health business. The wins come from structure and planning.

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Where do caregiver overtime rules stand right now?

The federal rules are in flux. The DOL has proposed reinstating the companionship exemption for agencies, but the change is not final and many states require overtime regardless. The safe approach is to budget and pay as if overtime applies.

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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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