Private medical practice
I’ve used YNAB for over a year for our personal budget. I love how I can create categories and predict what real money we have.
We are purchasing a small (exsisting) private practice where my husband is a physician and I will be taking over the bookkeeping. I’m wondering if there is a limit to how much YNAB can do in that setting. We already have payroll for the 15 employees set up with a local bank. I can write the few checks we will need monthly. I’m guessing I would set up a separate budget and link the business bank accounts to that? Also we have a real estate holding company that will have the mortgage for the building that the medical practice will pay rent to. I would need a 3rd budget for that
Any advice or experience from all you YNAB friends out there?
My guess is the limiting factor will be carrying over negative amounts in categories and the lack of audit trails on moving money around. If you want to look at an affordable business software with accounting lite send me a private message. My coworker created a software package with his brother before he joined our company. He has some business customers in retail and distribution.
I use YNAB to do budgeting for my writing business. However, it YNAB doesn't handle "float" at all, so it's rather limiting in that regard. I mean, sometimes I pay contractors while I wait for the client to pay me, and YNAB won't tolerate that budget line being red. YNAB works well for the routine stuff, but I use a major accounting/bookkeeping software program for my main business budgeting. Good luck with your new practice!
Ask your accountant for software recommendations. YNAB is great for budgeting, but not so great for financial reporting, which is what you really need for a business bookkeeping package, despite the fact that YNAB will tell you otherwise.
I would want a bookkeeping system that is well-integrated with the billing system so that I don't have to do double or triple entry.