The Starting Point
The consultant’s private practice had originally operated as a sole trader. As the practice developed, the decision was made, following advice from their accountant, to move the business into a limited company.
The incorporation itself was managed by the accountant, but the change also had practical implications for the day-to-day running of the practice. Banking, payments, bookkeeping and financial records all needed to reflect the new company structure, while the existing billing and payment processes needed to continue without interruption.
Importantly, this needed to happen without creating unnecessary change for patients.
The Approach
As Practice Manager, I was already managing much of the financial journey within the practice, including patient activity, billing, payment collection, reconciliation and outstanding accounts.
The transition provided an opportunity to build the bookkeeping process into that existing financial workflow:
Patient activity → Billing → Payment collection → Reconciliation → Bookkeeping → Accountant
A bookkeeping system was established for the new limited company, alongside processes for recording income and expenditure, reconciling the bank account and maintaining accurate financial records throughout the year.
The practical arrangements around billing and payments were also updated to reflect the new company, while ensuring continuity across the practice during the transition.
The accountant continued to provide the specialist accountancy and tax support, with organised day-to-day bookkeeping records maintained within the practice.
Keeping the Patient Journey Consistent
Patients continued to contact the same practice, arrange their appointments in the same way and receive the same administrative support.
For most patients, one of the only noticeable differences was the company name appearing in relation to payments, rather than the consultant’s personal name, including where this appeared on their bank statement.
The business structure had changed. The patient’s experience didn’t need to.
The Outcome
The consultant moved into the new company structure with the financial processes needed to support it already embedded into the day-to-day management of the practice.
Billing, payments, reconciliation and bookkeeping became part of a connected financial process, providing clearer records throughout the year and organised financial information for the accountant.
Most importantly, a significant operational change behind the practice was implemented without disrupting the delivery of the practice itself.
The Wider Lesson
Changes to the structure of a private practice don’t happen in isolation. They can affect banking, payments, billing, bookkeeping, systems and administration.
Managing those practical details alongside the professional advice of an accountant can help ensure the business changes behind the scenes while the practice continues to operate as normal.
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