The best way to start the new year is to have been prepared to start the new year. I’ve said that for nearly 30 years, and every December I’m reminded why.
Just this week, a practice owner admitted she wasn’t sure whether all her 2025 collections in the practice software were made into the bank. She’s not alone — this is the #1 financial disorganization mistake I see. When collections don’t match deposits, the accounts payable system will never reconcile, oversight becomes murky, and the CPA ends up working with distorted numbers.
December isn’t just a deadline.
It’s your reset button.
Your cleanup window.
Your chance to walk into 2026 with clarity, confidence, and control.
Here are essentials I recommend every practice should address before year-end.
1. Verify That Every 2025 Collection Has Been Deposited (Including Cash)
This is the most critical task — and the most commonly mishandled.
Every payment recorded in your practice management software must be deposited in the same year. Anything less creates reconciliation nightmares.
And let’s be honest:
Cash payments are sometimes intentionally not deposited.
This is a dangerous practice — ethically, legally, and financially — and it creates immediate inconsistencies between your AR and bank records.
Here’s what else you must account for:
- Payment plan deposits arrive net of fees.
- (The fee portion does not deposit — this is expected.)
- Credit card refunds, which reduce daily merchant deposits.
- (Again expected but must be understood.)
- Manual adjustments that may falsely inflate or deflate income.
Understanding these differences matters.
Accounting is clarity — not approximation.
Next week, I’ll release an article detailing exactly what your CPA needs from you before tax season.
2. Process Patient Refunds — When They Apply
Refunds should be issued only when:
- A patient has a credit balance and has not been in your practice for over a year, and
- Their credit cannot be applied to upcoming scheduled treatment.
Processing the refund reduces current-year income and cleans up your AR.
But it must be done correctly:
- Some states require businesses to transfer unclaimed credits to the State Comptroller after a specific period, typically five years.
- Never indefinitely hold patient credits. It is not your money.
- Always verify addresses and contact information before issuing a check.
This is not only financial accuracy —
it’s good ethics and good patient relationship management.
3. Ensure the Doctor Owner Controls All Admin Access
This correction is important: YOU refers to the doctor owner —
not the Office Manager, not the CPA, not the Team Leads, not anyone else.
By December 31, the doctor owner must personally hold:
- Practice software administrator credentials
- Primary admin rights to QuickBooks (QBO or Desktop) or other accounts payable software
- Merchant services logins and MFA (multi-factor authentication)
- CareCredit or patient financing access
- Online banking and credit card portal access
- Payroll service administrator access
Team Members may have role-based access,
but financial and software authority must remain with the doctor owner.
Why?
Because many embezzlement cases begin with:
- A doctor who didn’t know the admin password
- A Team Member who controlled all portals
- A CPA who never asked to see practice software reports
Access is oversight. Oversight is protection.
4. Download and Archive All Financial Reports — And Why It Matters
This step is more important today than ever before. Why?
Because financial institutions do NOT keep records forever.
I recently prepared evidence for an embezzlement case where the bank only had seven years of statements available. The true embezzlement amount was unquestionably higher — but no longer traceable because older statements were gone.
Additionally:
- If you change banks, you instantly lose access to ALL prior online statements.
- If you change merchant providers, the same thing occurs.
- CareCredit only allows limited date range retrieval windows for funding statements.
- If you change practice software, keep annual date range reports of the old software, regardless if you are “converting” the old software to the new. It most often has glitches…
So yes, the practice should download:
- Monthly bank statements
- Credit card statements
- Merchant deposit detail
- CareCredit funding reports
- Payroll summaries
- Annual production, collection, and adjustment reports
- AR and insurance aging reports
- Loan statements for LOCs and SBA loans
Archive all data in clearly labeled folders: 2025 Financials → Month → Statements + Reports
Your future CPA — and your future self — will thank you.
5. Conduct a Candid Year-End Evaluation of Your Practice
Before the calendar turns, I encourage every practice owner to pause and take an honest look at the year that’s ending — not just financially, but operationally and personally.
This isn’t about criticism or overwhelm. It’s about clarity.
Ask yourself a few candid questions:
-
Do you clearly understand how money is coming into your practice — and do those numbers match what is actually being deposited?
-
Are you confident that all collections, adjustments, and refunds are being handled consistently and transparently?
-
Who generates your financial reports — and who reviews them?
-
If you stepped away for 30 days, would you feel comfortable with the level of oversight in place?
-
Do you know which expenses are driving your overhead — and which ones quietly grew this year without much notice?
Too often, practices rush into a new year carrying forward the same habits, the same blind spots, and the same frustrations — hoping things will somehow improve. As the saying goes, doing the same thing and expecting different results rarely works.
A thoughtful year-end review creates space to identify what worked, what didn’t, and what needs to change before the pressure of a new year sets in. It also allows you to define clear goals for the year ahead:
-
What specifically needs to improve in 2026?
-
What systems need refinement or stronger oversight?
-
What would make you feel more confident — not just more productive — twelve months from now?
Whether this review is done independently, with a trusted advisor, or through a structured process, the key is intentionality. Starting a new year prepared is far less stressful than reacting once problems surface. And, if you need help, you know how to reach me.
I’ll be sharing additional guidance early next year on how to prepare your financial systems before sending information to your CPA. For now, consider this your nudge to slow down, reflect honestly, and start the new year with greater clarity and confidence.
A Final Reflection
There is something energizing about beginning a new year prepared — knowing everything is in order, the numbers make sense, and you aren’t dragging old problems into new territory.
By this time of year, most of us are running on fumes.
Life is full. Work is full. Leadership is full.
But preparation creates peace.
Clarity creates confidence.
And organization creates opportunity.
And you are not alone.
I’m making my own plans for an outstanding 2026 — a new book release, new speaking courses, and new opportunities to make a difference.
Let’s make sure your practice is ready, too.
If you want help reviewing your systems, ensuring oversight, or preparing for year-end, an Ask The Expert Consultation (two hours) is a great place to start.
Here’s to a strong finish — and an even stronger beginning.