Bookkeeping and Accounting for Psychiatrists

As a psychiatrist, you may be eligible to claim a variety of tax deductions on your income. These can include the cost of professional development courses, registration fees, professional association membership fees, home office expenses, work-related books or journals, medical equipment, insurance, cost of outsourcing tasks to other professionals such as bookkeeping or cleaning, and travel expenses if you travel to see patients or attend conferences. However, tax laws can be complex and vary from place to place, so it's always a good idea to consult with a professional bookkeeper or accountant to ensure you're claiming all applicable deductions.

Bookkeeping for a private psychiatry practice can differ from other businesses in a few significant ways. First, healthcare practices like psychiatry often deal with a combination of private pay clients, insurance claims, and potentially government healthcare programs, each having their unique billing procedures. These multi-layered income streams require intricate tracking, documentation, and precise record keeping.

Second, medical practices have to deal with high amounts of confidential patient data. This involves additional layers of record keeping to ensure compliance with privacy laws such as HIPAA in the United States. Any bookkeeping or financial tracking software used would need to have robust security measures in place to protect this sensitive information.

Lastly, psychiatry practices often have additional expenses related to medical supplies, practice insurances, and continuous education requirements that aren't seen in other industries. Accurately categorizing and tracking these expenses is crucial for correct financial reporting and tax preparation.

At Bench Accounting, our experienced bookkeepers are well-versed in these unique challenges and are equipped to provide tailored bookkeeping services that meet the needs of private psychiatry practices.

There are several key aspects to consider when managing the financials in regards to health insurance billings and reimbursements:

• Understanding of regulatory requirements: Complying with all relevant federal and state regulations is crucial when dealing with health insurance billing.
• Accuracy: Errors in billing can lead to significant delays in reimbursements and potentially fines. Proper financial management would involve meticulous record keeping.
• Time-management: Health insurance billing often involves strict deadlines. Hence, organized financial management is important.
• Knowledge of health insurance plans: Different plans have different rules regarding reimbursements. This knowledge can help speed up the billing process and ensure maximum reimbursement.
• Security: Financial information associated with health insurance billings and reimbursements is sensitive, it should be well-protected against potential breaches.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.