HealthTech accounting differs from accounting in other industries and fields largely due to the complexities of the healthcare industry and the need to stay compliant with standards and regulations. It’s largely why a cookie-cutter accounting approach won’t do, especially for a startup. Graphite Financial has established itself as the go-to accounting firm for startups in HealthTech & healthcare, as we strive to navigate the complexities of health care organizations and the industry’s accounting needs while providing support for all financial operations, in line with generally accepted accounting principles (GAAP).

Why Healthcare & HealthTech Startups Need Industry Specific Accounting Services

A generic accounting approach isn’t going to cut it for HealthTech and healthcare startups largely due to the complexities of the healthcare field and having to comply with various medical regulations, such as HIPAA. Additionally, accounting has to consider the multiple layers of payers in HealthTech and healthcare, from patients to health care providers to insurance companies to government programs. That’s why having a healthcare accountant who understands these nuances is crucial for success.

In addition to this, there are also the basic accounting principles that have to be accounted for, such as revenue recognition and financial reporting.

Our Healthcare & HealthTech Accounting Services

Graphite’s healthcare accounting services are tailored specifically to healthcare and HealthTech startups, which meet the unique needs of the industry.

Revenue Recognition for Healthcare & HealthTech Services

Revenue is recognized when obligations are satisfied at agreed-upon transaction prices. In healthcare, this typically occurs when the patient or customer is treated or receives control of goods or services. Revenue recognition in healthcare and HealthTech differs from other fields due to the multiple channels of revenue (e.g., patients, insurance companies, government programs) that must be managed, all while ensuring compliance with ASC 606.

HIPAA-Compliant Financial Management

Adhering to HIPAA regulations can help reduce risk, avoid legal threats and potentially even contribute to financial success. Graphite advises on HIPAA-compliant accounting software to ensure that any sensitive data is handled with care and in accordance with the required standards.

Outsourced Bookkeeping for Healthcare Providers

Outsourced bookkeeping can help streamline financial processes and better ensure that complex financial transactions are properly managed. This is especially important in the healthcare industry given the intricate billing and reimbursement systems. In addition to this, there are cost and data security benefits as well.

Accounts Payable and Receivable Management

Managing accounts payable and accounts receivable is imperative to help determine the financial health of any company. Effective management can help improve cash flow, build stronger vendor relationships and empower leaders to make smarter, more informed decisions. Additionally, accurate cash flow statements are essential for monitoring the inflow and outflow of funds, ensuring that the company maintains healthy liquidity.

Financial Reporting & Compliance

HealthTech and healthcare startups are required to comply with GAAP standards to meet regulatory requirements. Ensuring compliance also helps ensure consistency in financial statements and reporting.

Budgeting and Financial Planning for Healthcare Organizations

Good budgeting and planning helps with decision-making, resource allocation and charting a path for the future of a healthcare organization. It can also help HealthTech and healthcare startups plan and track revenue and expenses to better serve their key stakeholders.

Audit Preparation & Support

A big part of audit preparation and support is the ability to fall back on accurate and compliant, financial information and records. That’s another key way Graphite can help when it comes to HealthTech and healthcare accounting.

Outsourced CFO Services for Healthcare & HealthTech Startups

Graphite has accounting professionals, tax specialists and fractional CFOs, the latter of which can offer strategic guidance to your HealthTech and healthcare startup at a fraction of the cost of bringing in a full-time CFO.

Why HealthTech & Healthcare Startups Choose Graphite

HealthTech and healthcare startups choose Graphite because we position ourselves as a one-stop shop when it comes to healthcare accounting. We have industry-specific knowledge and a track record of helping startups in the healthcare industry flourish.

Industry Expertise

Graphite’s staff is composed of experienced professionals who understand the unique ins and outs of the healthcare industry and HealthTech fields. We know the accounting challenges that the industry faces – from HIPAA compliance to complexities with revenue recognition – and provide the services to overcome them.

Advanced Tech Integration

From AI to machine learning to automation, we’re innovative thinkers at Graphite and always looking to implement the right technologies to help our teams service our partners in a better way.

Healthcare-Specific Solutions

Our deployment of healthcare-specific solutions enables us to offer industry-leading accounting services to our partners.

Security and Compliance Focus

Security and compliance are always key priorities at Graphite. We ensure compliance by using programs and tools designed for accounting in healthcare and our internal security team sets the standard for how we keep confidential data secure with all of our partners.

Cost-Effective Solutions

There are significant cost advantages to working with an outsourced CFO rather than bringing one in-house as a full-time employee. What’s more, Graphite offers flexible pricing plans suited for startups that are still in growth mode.

The Future of Accounting for HealthTech

Much like other sectors, AI and automation are set to greatly impact the future of HealthTech and healthcare accounting. These technologies can harness data, optimize processes, and enable startups in the industry to make quicker, more informed decisions. As a company that prides itself on being at the forefront of innovation, we are committed to embracing these changes and incorporating new technologies to enhance our service to partners.

FAQs

How does healthcare revenue recognition differ from other industries?

Revenue recognition in healthcare and HealthTech differs from other fields in that there are multiple revenue channels, such as payments from patients, health insurance companies,, government programs. These diverse sources create complexities in determining when revenue is earned and recognized. Additionally, healthcare organizations must navigate these complexities while ensuring compliance with ASC 606, the accounting standard that governs revenue recognition.

What are the key compliance requirements for healthcare accounting?

Healthcare compliance requirements include auditing and monitoring, staying compliant with HIPAA requirements, and maintaining accurate financial records and more. In addition, healthcare organizations must adhere to GAAP (Generally Accepted Accounting Principles), ensure proper billing and coding practices, manage patient data in compliance with privacy regulations, and follow federal and state laws related to healthcare finance.

How can healthcare organizations ensure their financial data is HIPAA-compliant?

Staying financially compliant with HIPAA regulations can help reduce risk, avoid legal threats and potentially even help lead to financial success. Graphite uses HIPAA-compliant accounting software to ensure compliance and that any sensitive data is handled with care.

What are the benefits of outsourcing accounting services for healthcare providers?

Outsourcing accounting services ensures hospitals, healthcare providers and HealthTech startups have expert financial services at their disposal as they need them. In addition to relying on experts and their industry-tailored solutions, there are also significant cost advantages to partnering with an accounting firm as opposed to bringing such services in-house.

How do healthcare organizations manage multiple payer sources?

Healthcare startups may deal with hundreds of different payers. Graphite can help implement the right systems to manage these payer and payment sources to ensure bookkeeping stays accurate and compliant and the startup is on the best path for growth.

What is the role of an outsourced CFO in a healthcare startup?

Outsourced CFOs can fundraise, arrange financial reports, handle bookkeeping, ensure tax compliance, manage bill pay and invoicing, and more. At Graphite, our fractional CFOs aim to act as an extension of your startup.

How does Graphite help healthcare organizations prepare for audits?

Graphite helps with audit preparation and support by ensuring accurate and compliant financial records.

Take the Next Step: Transform Your Healthcare Accounting with Graphite

As experts in HealthTech and healthcare accounting, Graphite can help transform accounting practices at your startup. To learn more about how we’ve established ourselves as the premiere accounting firm for HealthTech and healthcare startups, contact us today for a free consultation. We’ve already helped hundreds of startups achieve financial success in part thanks to our accounting services. Yours could be next.

Our Leadership

Our leadership team includes CFOs, accountants, and financial experts with extensive knowledge of startup finance and best practices. Get in touch today to learn how our team can support your HealthTech and healthcare startup.

Get in Touch

To learn more about the importance of accounting for your HealthTech and healthcare startup and to arrange a free consultation, contact us today. As specialists in accounting for health care services, we’ve supported hundreds of industry startups with their financial needs, helping them achieve growth and success. Our extensive knowledge and experience at Graphite can similarly benefit your startup. Contact our leading financial agency now.