As a doctor, dentist or practice manager you may need support in navigating the financial pressures of digital transformation in healthcare accounting. Here we will explain how to leverage Xero for real-time financial management. 

The NHS is facing significant pressures in patient care due to changes in contracts, reduced or reallocated funding, increased patient reporting requirements, and challenges in staff recruitment and retention. These factors make it essential to maintain profits to justify the responsibilities of ownership. Adding to these pressures are the changes in the tax regime and HMRC’s Making Tax Digital (MTD) initiative, which necessitate a shift from relying solely on year-end accounts information for financial performance review.

To enhance practice funds and understand the impacts of staff changes, PCSE superannuation deduction errors, or increases in health centre costs on cash flow throughout the year, practice managers need immediate access to financial figures. Compliance with MTD will require the use of digital, HMRC-approved software.

From April 2025, Making Tax Digital will become mandatory for individuals, requiring quarterly updates and a final declaration at the end of the year. While HMRC has yet to confirm dates for partnerships, they too will need to adapt to these requirements.

At Robson Laidler, we recommend Xero as our software of choice, though other options are available. Our healthcare team is Xero certified, ready to assist with any queries you may have. Key features of Xero include:

  • Real-Time Financial Reporting: Efficiently manage cash flow, providing practice managers some relief from constant pressures.
  • Automation and Connectivity: Streamline invoicing with online invoices, see if they’ve been opened, and facilitate online payments. Automatic bank reconciliation keeps accounts up-to-date with minimal effort.
  • Cloud-Based Software: Access Xero from anywhere with an internet connection, allowing simultaneous access for your accountant without duplicate licenses or backups. A mobile app ensures functionality on the go.
  • User-Friendly Design: A slick interface enhances the user experience, eliminating the clunkiness of some other packages.

Ultimately, Xero creates efficiencies in your finance function, allowing more time to focus on patient care and less time worrying about finances.

Please get in touch to discover how Xero can benefit you and your practice.