Medical Programs and Accounting Services
Medical Programs and its use in the Medical Practice
All health service provider organizations such as hospitals, clinics, medical practices and allied professionals need a medical program for the billing process.
This genre of software has become essential to cut workload of accounting, billing and record-keeping for medical service providers. Staff do inadvertently create errors in billing details and calculations during raising of invoices, bills and claims – and ultimately the submission to medical aids and patients.
Thus, it is fitting for administrative staff to use medical billing programs to overcome the complexities and onerous medical statutory requirements. Software automatically evaluates the data, other valuable information and arranges them according to the required statutory layout.
Medical programs for billing is a functional, interactive and self-explanatory interface for administrative staff and other users. Cost-wise it is available at affordable prices, includes various features to manage the accounting requirements.
Nowadays, it is often required that accountants oversee the financial performance of medical practices. From ensuring VAT compliance and returned, to calculating income tax payable to SARS.
With the help of your medical program and the reports it generates, account management has become effortless, smooth and precise. If you are looking to buy a medical program do ensure it incoporates the following in the South Africa context:
Any commercial enterprise with a turnover exceeding R1million or R86,000 per month must be registered as a VAT vendor. As such there are statutory returns that are required by SARS that must be complied with. Basically how this works is that your sales are recorded and your Output VAT calculated. Your purchased are recorded and your Input VAT calculated.
The difference between the two are then calculated and you pay this difference over to SARS.
It is therefore obvious that your medical program must furnish reports that at least provide you with an audit trail of your sales (fees/income generated).
INCOME TAX COMPLIANCE
As a provisional taxpayer, SARS requires you to furnish a bi-annual return. Your accountant will be ressponsible for drawing up financial statements. Your income will be based on two crucial components: actual income received (bank deposits) and income accrued (fees generated, but not yet received).
Your medical program must be able to furnish you with an accurate Aged Analysis which will be used by your accountant to derive your Accrued Income.
With a good medical program medical practitioners can focus on clinical and patient-related matters and cut the workload of billing, administrative and compliant processes by using this software.
It should have a generally easy-to-use interface with all the required reporting within easy reach. Today, medical programs such as Medinol are available at cost effective prices in the market.
There are three important criteria to consider for medical prgrams destined for your practice: features, functions and capabilities. Accountants are then best offered fast and precise information with the help your practice manageemnt sofware.
Certain Common Features of Medical Programs incorporating Billing Software
• Management of valuable data of patients
• Filing of Electronic Claims
• Reports of system
• Make easy use of word processor
• Display the status of claims
• Filing of Paper Claims
• Record management and financial ledger
• Stock control for dispensing
All above-mentioned features of medical programs are commonly used by practice administrative staff. Though not necessarily recomended we have seen situations where accountants are given access to the medical programs in order to retrieve the reports they require. We’d much rather prefer the reports are generated by the stafff, quickly scrutinized and only then once sanctioned by the doctor, handed over to the accountant. Allowing untrained persons free access is unnecessarily exposing the practice to data corruption.