HIPAA Compliant Bookkeeping for Optometrists: What You Need to Know
Running a successful optometric practice is about more than just caring for your patients. In order to continue to provide excellent care and build a positive work environment for your staff, you also need to ensure that your practice is taking great care of your finances. One way to do that is prioritizing excellent bookkeeping practices while also maintaining compliance with HIPAA protocol. Since most accounting software is not HIPAA compliant, some practices struggle with utilizing their bookkeeping software to their full advantage. The good news is that doing both is totally possible, and that’s what we’ll be discussing in our blog today.
How can Optometrists Ensure HIPAA Compliant Bookkeeping?
The #1 way to ensure HIPAA compliance in your bookkeeping is to simply avoid inputting any client data into your accounting system. Because your practice is legally obligated to protect patient health data, it is very important that you do not transfer 100% of data to your accounting system. In order to maintain compliance with HIPAA standards, you’ll need to ensure that client names and details about their procedures or services are not ever entered into your accounting software.
Are there software solutions that offer HIPAA compliant bookkeeping for medical practices?
Unfortunately, no. Today, no bookkeeping system exists that meets HIPAA standards, and that means that in order to maintain compliance with these standards, you’ll need to operate using two different systems – your practice management system and your bookkeeping system. These two will work together to give you insights about your practice, but the patient data held inside your practice management system should never intersect.
Is QuickBooks Online HIPAA Compliant?
QuickBooks products are not HIPAA compliant, but they are the best at tracking and organizing your financial data! We love using QuickBooks Online for our doctors because it provides real-time insights into their practice finances and ensures that they are 100% ready for tax day. We are able to use this software for our doctors because we can use third party apps that sever the ties between your client data and your financial transactions. This allows us to track your finances inside of QuickBooks Online without ever looking at a single bit of your client data. This not only protects you from a legal standpoint when it comes to HIPAA, but it also ensures that you are able to use your financial data to make key business decisions that will optimize your practice for growth.
If QuickBooks isn't HIPAA compliant, how do I ensure HIPAA compliant invoicing?
We recommend utilizing HIPAA Compliant billing software instead of using the billing features provided by QuickBooks Online. Some examples of these software solutions include:
- Cliniko
- Lytec
- NueMD
- Sage Intacct
Can I use my HIPAA compliant billing software for accounting
Sometimes, but we don’t recommend it. While many of these billing software products do come with built-in accounting systems, they fall short of the requirements needed to optimize your practice for financial growth. Plus, their end of year reports are not comprehensive enough to help you avoid clean up fees at your CPA’s office at tax time. Because they are based on medical standards rather than accounting standards, using these tools as your sole accounting software can create major problems when it comes to managing your KPIs, running financial forecasts or projections, and preparing for tax season.
When to explore virtual bookkeeping for medical practices
Connecting your QuickBooks Online account with your practice finances without compromising your patient financial data can be a challenge, but not when you have a professional by your side! Bookkeeping for Optometry specializes in providing comprehensive bookkeeping solutions for optometrists, ophthalmologists, and other eye care industry professionals. As such, we are up to date on the latest and greatest ways to care for our clients’ bookkeeping needs and strategize for rapid practice growth.