Mastering Year-End Financial Analysis & Reconciliation for Physician Practices

As the year ends, physician practices must conduct a thorough financial review. This process helps assess the practice’s financial health, spot areas for improvement, and ensure everything is accurate for the coming year. Here’s a streamlined approach to year-end financial analysis and reconciliation:

Mastering Year-End Financial Analysis & Reconciliation for Physician Practices

1. Trend Analysis

Conduct month-over-month and year-over-year comparisons to identify patterns or areas of concern. Look at revenue and expense trends to spot inefficiencies or opportunities for growth.

2. High-Level Analytics

Use key metrics like:

• Cost-to-Revenue Ratio: Measure expenses as a percentage of revenue to gauge efficiency.
• Financial Ratios: Profit margin, current ratio, and debt-to-equity ratio offer insights into profitability and financial stability.

3. Recording Accuracy

Ensure all revenues and expenses are properly recorded. Pay special attention to large or unusual transactions and make sure accounts receivable (AR) and accounts payable (AP) are fully documented.

4. Reconciliation

Reconcile key accounts like bank statements, credit cards, AR, AP, and loans with internal records to ensure accuracy. Proper reconciliation detects errors, prevents fraud, and improves cash flow management.

The Importance

Year-end financial analysis and reconciliation ensure accurate financial statements, reveal improvement areas, and prepare your practice for the new year. By following these steps, physician practices can achieve financial stability and make informed decisions for future growth. Master your physician practice with TMG Pitchers year-end financial analysis & reconciliation!