What Accounting System Do Physicians Use?
Most independent practices and group clinics choose a cloud bookkeeping platform that integrates cleanly with billing, EHR, payroll, and merchant tools. QuickBooks Online and Xero are the most common because they’re flexible, affordable, and support multi-entity reporting.
What matters most for a clinic’s books
- Clean intake of billing exports, write-offs, and adjustments
- Bank, credit card, and merchant reconciliations every month
- Class/location tracking by provider, clinic, and service line
- Standardized chart of accounts for medical practices
- CPA-reviewed financials on a reliable monthly cadence
Integrating medical billing with your books
We map billing exports into revenue, adjustments, and contractual write-offs, then reconcile payouts to the bank so AR and production reporting agree. The result: revenue that reflects allowed amounts, not just deposits.
Cash vs. accrual for medical practices
Smaller practices may use cash for simplicity. Growing groups often adopt accrual to manage AR lags and payor timing. Some use cash for taxes and accrual management reports-pick a method, document it, and be consistent.
When a multi-entity setup helps
If you operate multiple clinics or providers, use locations/classes and a shared chart of accounts, then roll up to consolidated reports for owners and lenders.
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FAQs
Which bookkeeping platforms work best for medical practices?
QuickBooks Online and Xero are common because they integrate with EHR, billing, and merchant tools while supporting multi-entity reporting.
Can medical billing exports be reconciled in QuickBooks/Xero?
Yes. We import payouts, write-offs, and adjustments, then tie them to bank deposits and AR aging.
Do practices need class or location tracking?
It helps. Track by provider, location, or service line to see profitability and make staffing or scheduling decisions.
How should insurance write-offs be handled?
Record allowed amounts and contractual write-offs via standardized journal entries so AR and revenue stay accurate.
Can multiple entities share one chart of accounts?
Yes, with a standardized chart and location/classes per entity; consolidate for roll-up reporting.
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