Veterinary Bookkeeping 101: Best Practices for Your Veterinary Clinic

Veterinary bookkeeping doesn’t have to be an intimidating task – in fact, there are many ways you can streamline the process to make it easier and more efficient. This veterinary bookkeeping basics article will teach you the best practices for your veterinary clinic. Included are tips on how to manage your finances without sacrificing accuracy, as well as what you need to do to have an accurate set of books before tax time. Follow these tips, and you’ll soon see that veterinary bookkeeping isn’t too tough after all!

Best Practices for Your Veterinary bookkeeping

Set up a proper chart of accounts

Imagine you have all of your receipts and accounting records neatly stacked in the corner of your desk. How would you assess at the end of the month whether your overall expenses for a specific service surpassed your total income from that same service? You’d have to sit down with your stack of paperwork and begin sorting through them, which would be a total nightmare! That’s basically why you need a proper chart of accounts to serve as a filing system for accounting documents.

dog at veternary

Track Expenses

Most veterinary practices use QuickBooks or another accounting program to track expenses. If you’re trying to understand your finances, start with your accounting software and figure out how to make sense of it. Are you operating at a loss? (It’s possible.) Are you running too lean? (It’s possible.) Do you have any money in savings? (Hopefully yes!) Figure out what your numbers are telling you and then decide what changes need to be made. One common mistake is not keeping an eye on cash flow—so watch for when checks come in versus when bills go out. Some veterinarians even keep a separate bank account that they only use for paying bills; others pay their vendors through direct deposit from their main checking account so they can easily see exactly where their cash is going each month.

Connect your bookkeeping software to your practice management software

These days, many practices use practice management software to increase productivity and effective time management. Connect your practice management software to your bookkeeping software to maximize efficiency. Any transactions you enter into your practice management software will be automatically uploaded into your bookkeeping software, saving you even more time and money.

veterinary bookkeeping

Connect your bookkeeping software to your bank account

Set up your business bank account to automatically transfer transaction information to your bookkeeping software. This way, you save time and money. No more manually entering each transaction or wondering that you could have missed certain transactions, resulting in an inaccurate depiction of your cash flow.

Reconcile your bank accounts regularly

It will be much easier for you to reconcile each transaction on a weekly basis now that your bank account is automatically uploading transactions into your bookkeeping software. This will provide you with a clear picture of your cash flow, allowing you to make informed decisions about your practice.

Maintain Proper Documentation

Starting off with good documentation is crucial for every veterinarian who wants to be ready for tax time. A common mistake many new veterinary clinic owners make is waiting until tax time rolls around before starting their record-keeping process, but it’s important to keep proper records throughout each year so that when it comes time to file taxes, all of your information will be readily available and accurate.

veternarian bookkeeper

Know When to Hire a Veterinary Bookkeeper

Some veterinarians choose to handle their bookkeeping in-house. If you do, be sure to focus on your veterinary practice and your patients—not on your books. Consider outsourcing your bookkeeping to a bookkeeper or accountant who can do that job while you stay focused on what’s most important: helping animals!

Second set of eyes

By adding another set of eyes to your bookkeeping it ensures that errors, intentional or unintentional, cannot be made without being discovered by another person. This can save you thousands of dollars and lots of stress.

If you’re ready to simplify your Veterinary practices bookkeeping contact smartbooks360 now at 347-470-9069. We provide all of the behind-the-scenes services to ensure that your veterinary practice runs smoothly. Think of us as an extension of your team which will always have up-to date accounting records ready for you.

Thanks for reading! We hope this article was helpful. If you have any questions, feel free to reach out to us at [email protected] We’re always happy to help! 🙂