Financial Health Bookkeeping Checklist for Wellness & Health Practitioners

To remain a stable and thriving health and wellness practice, you must maintain an organized and accurate bookkeeping system. 

We’ve found that regular financial reviews safeguard the stability of your practice and can even pave the way for future growth and success. 

10-Step Checklist to Reviewing Your Practice’s Financial Health

At The Boutique COO, we have a team of bookkeepers who work with many health practices throughout the US. We always encourage our clients to maintain a proactive approach to their bookkeeping and evaluate their financial health before the end of the year. 

If you’re interested in running a financial health check on your practice, feel free to steal our Financial Health Bookkeeping checklist we run for our clients at the mid-year point. 

Do this now to be confident that their practice is on the right track!

1. Review Revenue Streams

Understanding where your income is coming from is essential. Break down your revenue by service categories, such as consultations, treatments, and product sales. Analyzing these streams helps identify your most profitable services and those requiring attention or restructuring.

2. Evaluate Expenses

Take a close look at your expenses. Categorize them into fixed and variable costs, including rent, utilities, payroll, supplies, and marketing expenses. Detailed scrutiny of your spending patterns can reveal areas for potential savings or reallocation of resources to more impactful areas.

3. Reconcile Accounts

Reconciliation of your bank and credit card statements with your bookkeeping records is crucial. This process ensures that all transactions are accurately recorded and helps identify any discrepancies or unauthorized charges. Regular reconciliation prevents errors from compounding and keeps your financial records precise.

4. Budget vs. Actuals Review

Compare your actual income and expenses to your budget projections. Assess any variances and understand the reasons behind them. This review helps you adjust your budget for the remainder of the year, setting realistic financial targets based on your current performance.

5. Organize Tax Documents

Mid-year is an excellent time to organize your tax documents and review your tax strategy. Ensure all deductible expenses are recorded, and consider consulting with a tax professional to optimize your tax planning. Early preparation can prevent last-minute stress and potentially reduce your tax liability.

6. Client Billing and Payments

Ensure your billing processes are efficient and up-to-date. Review outstanding invoices and follow up on any overdue payments. Implementing automated billing systems can streamline this process, reducing administrative burdens and improving cash flow.

7. Inventory Management

If your practice involves selling products, conduct a thorough inventory review. Ensure your inventory records match your actual stock. Accurate inventory management prevents overstocking or stockouts, optimizing your working capital and meeting client demands effectively.

8. Assess Financial Systems and Software

Evaluate the effectiveness of your current bookkeeping and financial management systems. Consider upgrading to more advanced software if your current system lacks efficiency or features. Modern accounting software can automate many tasks, provide real-time financial insights, and improve overall financial management.

9. Plan for Future Investments

Identify potential areas for investment based on your financial review. Whether it’s upgrading equipment, expanding services, or enhancing marketing efforts, planning for future investments is crucial for sustained growth. Ensure you have a clear understanding of the financial implications of these investments.

10. Self-Care

Last but not least, remember to take care of yourself. Financial health is crucial, but so is your personal well-being. Take breaks, meditate, and recharge. A well-rested practitioner is a more effective practitioner.

Need Help With Your Bookkeeping? Talk to TBC!

By following this financial health bookkeeping checklist, you’ll keep your books in order and ensure your practice thrives! 

If you need help with this checklist, contact The Boutique COO bookkeepers. We’ll take care of all these tasks so you can focus on what you do best: providing exceptional care to your clients! 

Here’s to a prosperous, balanced, and serene remainder of the year! 🥂🎆