A Month-End Close Routine for a Membership-Based Medical Practice

A membership practice has fewer transactions than a high-volume clinic, which makes it easy to let the books slide. But the accounting has a few quirks, especially around prepaid fees, and an unreliable month undermines every decision that follows. A repeatable close fixes that.

Reconcile cash first

Tie out each bank and card account to its statement, and reconcile deposits for membership payments and any insurance remittances separately, as we recommend in keeping membership and insurance revenue separate. Differences usually point to timing, fees, or a miscoded deposit.

Update the membership schedule

Using your list of members, start dates, fees, and terms, calculate the month's earned revenue and move that amount out of deferred revenue, as described in membership fees and deferred revenue. Confirm the remaining balance matches the schedule. Record new members, refunds, and prorations.

Check payroll and accruals

Confirm payroll entries match payroll reports. Accrue wages and any on-call pay earned but not yet paid. Record prepaid expenses such as annual insurance and software in the months they cover.

Review the reports

Read the profit and loss and balance sheet, and compare with the prior month and the same month last year. Look for categories that moved unexpectedly and ask what changed. Then check your cash outlook for the next 60 days.

Set a deadline

Aim to close by the tenth. A fast, consistent close makes forecasting and decisions much easier.

The bottom line

Reconcile cash, update the membership schedule, check payroll and accruals, review the reports, and finish on time. The routine takes a few hours and keeps your numbers trustworthy.

911 Bookkeepers works with cash-pay and membership-based medical practices across the Baton Rouge metro and surrounding parishes, keeping membership practice books accurate and current every month.

MDVIP is a trademark of its respective owner. 911 Bookkeepers is an independent bookkeeping firm and is not affiliated with or endorsed by MDVIP. Nothing here is legal, tax, or compliance advice; confirm specifics with your own CPA, attorney, and affiliation agreement.