When it comes to any business, accounting processes can be considered the support system for the company’s succession. Within the world we are living in today, the healthcare industry is in severe need of this financial backbone. Accounting for the NHS and healthcare profession requires expert understanding and knowledge on the industries processes and expenditures, resulting in additional, expert procedures being carried out to examine and declare the financial projections of the company.
Throughout accounting within the United Kingdom, there are a series of guidelines that are to be followed, no matter the sector of your business, to ensure that your bookkeeping is following the standard procedures and that your accounting and financial planning and filing principles follow the rule of the rest. On top of this, the Department of Health publishes an annual Group Accounting Manual, focused specifically on the UK’s NHS and healthcare institutions.
There are four key aspects of accounting that must be carried out to ensure that the health and care of any and every patient is superior.
- Effective planning
Using the figures from your institutions bookkeeping records to produce an effective projection into the future of your healthcare business.
- Control and maintenance
Ensuring that all accounting rules and regulations are strictly followed by a dedicated member of your team, as well as monitoring progress and alerting if an immediate change is required.
Ensure that you are keeping on track with your financial projections, an essential factor of accounting in healthcare.
- Critical decision making
Combining all factors together, critical decision making is a factor which will be required at multiple stages throughout your financial processes. These decisions will essentially lead to successfully run healthcare institutions.
When healthcare units are thought about, the financial side usually never comes into the minds of those utilising its services, but without this intricate aspect, there could be no healthcare unit at all. Whereas accounting processes are mainly covered by one department or team in many workplaces, the ones carried out within the medical profession may require staff from multiple teams to come together and produce strong and effective accounting processes. This is crucial within healthcare for many reasons.
One is to ensure that all rules and regulations are closely followed, avoiding the need to pay any penalties and allow the high and reliable reputation of the medical institution to remain.
Another is to ensure maximum medical care and pain relief for patients in public, but also private healthcare sectors. This is where accounting aspect two and three come into play. Having multiple staff members working hand-in-hand with the accounting and finance team, you will be able to ensure that you are utilising cost-efficient treatment methods whist remaining cost effective for your healthcare unit.
Within private healthcare, you may often receive payments from insurance companies to cover costs for their client. However, this isn’t always the case and occasionally, you may find that fees have gone un-paid. With a dedicated and focused accounting team and credit controller, you can monitor invoices and expenses paid whilst matching them up with the incoming payments, ensuring that you are never ‘out of pocket’ and can continue to treat and house patients in a high-class medical institution.
If you require any further information on how to manage and control the finances within your medical unit, or have any questions or queries on how we could support you with your accounting roles, get in touch with a member of our qualified Hammonds Chartered Accountants team by calling 0203 007 4990 or emailing us at where we will be happy to help you and your business.