The checklist represents a sample of key medical practice audit considerations. It is not a comprehensive checklist, and further analysis may be required depending on the nature of the particular audit. AAPC’s job board is your one-stop resource for medical coding jobs, medical billing jobs, and other jobs in healthcare. Second, through the CERT program, the government tracks error trends among provider types, codes, and services. These findings help CMS virtual accountant pinpoint issues raising the improper payment rate.
Choose a Suitable Accounting Method
Whether your audit results in findings or not, it’s essential to learn from the experience. If there were any compliance issues, make necessary adjustments to prevent future problems. Consider revisiting your internal processes, offering staff additional training, or upgrading your billing software. Periodic audits can catch discrepancies, overcharges, and other issues before they become significant problems.
- Depending on how long a medical device has been in use and what new models are available, the practice may want to evaluate the return on investment from medical equipment upgrades.
- Effective accounting can supercharge your financial health, from streamlining operations to maximizing growth.
- Regular staff training, robust documentation practices, and up-to-date policies are essential to maintaining compliance and avoiding legal complications.
- Governments and regulatory bodies often update tax codes, labor laws, and financial reporting standards.
- Understanding how your practice compares to industry averages can help you know whether there is a need to reorganize staff and dedicate more resources to certain parts of the practice.
- Yet just as solid medical records are one of the pillars of excellent patient care, financial records are the foundation of a solid accounting system.
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Select an Independent Review Organization (IRO)
Accounts receivable must be followed up on to ensure timely patient and insurer payments. RACs are required to employ a variety of professionals to review claims, including nurses, therapists, certified medical coders, and physicians. Claims processing contractors have the responsibility of adjusting claims, managing offsets and refunds, and reporting the debt on financial statements. A focused audit looks at one item, one type of service, one provider, or one coder. A random audit reviews medical records chosen by chance to determine a healthcare organization’s compliance and possible liabilities.
Vendor Management
Ensure all cash flow is recorded and deposited into your bank account before spending it. All businesses need to abide by these ethical and regulatory guidelines and bookkeeping best practices while preparing their financial statements. As a bookkeeper, you need to understand GAAP compliance principles well to avoid causing any legal complications for your clients. Maintaining hard copies is one of the major bookkeeping practices you shouldn’t overlook, as it ensures you have a backup for all the digital records. The hard copies are useful when auditing who should come in periodically to audit the medical practices finances and bookkeeping practices? your accruals and accounts receivable.
- Make sure your team is regularly trained on the latest coding updates (hello, ICD-10 changes!).
- Responding to such requests quickly, with accurate, up-to-date data also improves communication and builds your board’s confidence in you.
- As your healthcare business evolves, you can add new categories or modify existing ones.
- Adhering to bookkeeping best practices ensures accurate and detailed financial records essential for preparing reports to share with investors, stakeholders, and business partners.
- Effectively monitor the flow of income and expenses for maintaining the financial stability of a dental practice.
- An annual internal audit can help ensure billing compliance and assess the effectiveness of your billing processes.
Depending on your business setup (LLC, S-Corp, sole proprietor), your tax obligations will vary. At month-end, compare your book’s balance to your bank statement to catch any discrepancies or fraudulent activity. It’s best to keep a consistent eye on your books so that you can catch it early and not face any surprises come tax time. Using a charge capture tool like the one shown here, you can complete the chart audit described in this article. With Taxfyle, your firm can access licensed CPAs and EAs who can prepare and review tax returns for your clients.