5 Reasons Your Healthcare Organization Should Outsource Accounting
Statistics show that healthcare providers around the world have been outsourcing the non-medical aspects of their operations at an increasing rate. Hospitals, surgery centers, and even small family practices have found that relying on professional third-party vendors to handle services like Information Technology (IT), records management, and customer service can reduce costs and fuel efficiency without sacrificing patient care.
One of the areas not widely considered for outsourcing by healthcare organizations is accounting services. This is likely due to the fact that most healthcare organizations don’t understand the array of benefits that come with hiring a third-party vendor to handle their financials.
As Certified Public Accountants who specialize in the accounting needs of physicians and healthcare organizations, we wanted to share the top 5 benefits of outsourcing your healthcare organization’s accounting.
- Reduced costs: Employing an in-house staff for accounting and bookkeeping purposes can get expensive. Hiring even just one person means your organization is responsible for the costs of salary, benefits, taxes, and so on. If your practice grows and more accounting staff is needed, then you may find the cost to be downright prohibitive. By bringing in a third-party accounting firm, you’ll spend a fraction of the amount you would on in-house staff and get a team of tax and accounting experts at your service.
- Customized solutions: Accounting firms can go beyond what an in-house bookkeeper typically offers to provide a range of solutions to fit your needs. For example, a firm like Tobin & Collins can generate comprehensive reports that give in-depth perspectives into your organization’s financial picture including cash flow, expenditures, profit margin, and more. Plus, they’ll offer strategies to help reverse any unfavorable trends. A full-service accounting firm can also provide business valuation, taxation planning, litigation support, management advisory, and other value-added services that an in-house bookkeeper or team just can’t offer.
- Immediate access to trained professionals. When you hire a third-party accounting team, the specialists you need will be ready to help you on day one. There’s no need to train a new hire or get him or her “up to speed” on industry-specific laws and regulations. You can trust that the associates at an accounting firm like Tobin & Collins will have expert knowledge of all applicable laws and regulations that impact the healthcare industry, including HIPAA, the Affordable Care Act, and the brand-new Tax Cuts and Jobs Act so your organization is compliant across the board.
- Maximized efficiency: When compared to doing accounting work in house, a third-party accounting firm can bring a level of efficiency to your organization that you may not have thought possible. You will likely find that an outside accounting firm can help eliminate costly redundancies and errors, solve problems more quickly, optimize cash flow, and put new workflows and systems in place for the benefit of you and your patients.
- Increased focus on patient care. With an outside accounting firm taking care of your organization’s financials, you’ll be able to reduce your administrative burden and have more time and energy to do what is most important—giving time, attention, and quality care to your patients.
If you’re a healthcare provider, then these are just a handful of reasons you should consider outsourcing your accounting services to the experts at Tobin & Collins. For over 50 years, Tobin & Collins has provided accounting, tax, and business support services to clients in the New Jersey and New York metropolitan area. We specialize in financial services for the healthcare industry and would be happy to discuss your organization’s financial needs and provide a customized, cost-effective solution. Contact Tobin & Collins today.