In primary care, financial uncertainty is a constant. Funding headlines tend to dominate, but in our work with practices, we see uncertainty itself creating as many challenges as funding levels.
Robust, timely reporting can help reduce that uncertainty so that partners and practice managers can make confident decisions throughout the year, not just at year’s end.
Why financial management matters
Accurate reporting leads to better decision-making. Given that practices cannot simply “put prices up,” cost control and proactive planning become crucial. Without timely information, we find that partners can sometimes be surprised by the costs that have accumulated quietly. Using structured reporting regularly brings these trends into view well before the year end accounts are prepared.
Making the most of modern accounting platforms
Most practices we support have moved to cloud accounting in recent years, gaining the benefits of easier collaboration, automation, and integrations for effortless document capture.
Live bank feeds reduce manual effort and risk of errors. Tools like HubDoc/Dext streamline the recording of invoices into the ledger. Newer AI capabilities are emerging to automate reminders, insights, and reconciliations.
What are the biggest challenges to producing accurate and timely information?
Time
Practice managers wear many hats: finance, HR and operations. Retaining time for bookkeeping can be a challenge. Three practical solutions could help:
- Use automation (bank feeds, bank rules) to reduce clicks and standardise coding.
- Work little and often to prevent backlog.
- Outsource – utilise a payroll bureau, bookkeeping or financial management outsourcing services to save time and boost efficiency.
Knowledge
As finance is not the only role of a practice manager, there can sometimes be gaps in knowledge – we often hear the phrase ‘we don’t know what we don’t know’. So, what can you do to enhance your knowledge?
- Use learning hubs (Xero Central, Sage University, QuickBooks Training & Learning).
- Ask for tailored training from your accountant which focuses on the reports you need.
- Ask your accountant for help – there are no “silly questions”.
Common mistakes that distort reporting
Before we look at the key reports that you can use to help with decision-making, it’s worth taking a look at the common mistakes that can mislead decision-makers:
- Duplicated invoices or bills.
- Inconsistent or unclear coding.
- Posting complex statements as one transaction.
- Lack of supporting documentation for transactions.
On the reporting sid,e it is important to:
- Understand the difference between cash basis and accruals basis.
- Review the bank reconciliation and aged payables and receivables routinely.
The core reports that every practice should review
- Bank Reconciliation Report
- Aged Receivables & Aged Payables
- Profit & Loss
- Balance Sheet
- Cash Summary
Going further: customised reporting that drives decisions
Customise reports to group related codes, add comparison columns, and build formulas.
Use the budget manager and set up reports to compare actuals vs budget and forecast year end outcomes.
Use tracking to see performance by site, PCN project, or service line.
These tools detect overspend early, highlight opportunities and enable timely operational decisions.
How your accountant can help:
- Maintaining your Xero ledger
- Report set up
- Free up your time
- Improve insights
It’s why we’re formalising our virtual finance manager support – bringing together bookkeeping, reporting, and insight so practices can rely on timely, accurate data without the admin burden. Keep an eye out for further information to be released on this shortly!
Practical next steps for your practice
- Block protected time weekly to keep data current.
- Record transactions accurately: review coding, allocate NHS income based on statement analysis, and attach documents.
- Adopt a monthly checklist: bank reconciliation cleared, aged receivables and payables reviewed.
- Customise your reports: group codes, add budgets and tracking; monitor locum costs and staffing.
- Ask for help early: training, health checks, or management reporting support.
If you would like to discuss any of these recommendations further with a member of our specialist Healthcare team, please get in touch!
This material is for informational purposes only and should not be relied upon as professional advice.
