Bookkeeping for veterinary practices and animal hospitals
Pharmaceutical COGS tracking, CareCredit reconciliation, production-based associate compensation, controlled substance documentation, and equipment depreciation — bookkeeping built for how veterinary practices actually operate.
We work with veterinary practices — from single-doctor clinics to multi-associate hospitals — on the bookkeeping complexities most general firms have never encountered: pharma COGS, production-based compensation calculations, CareCredit remittance reconciliation, and the controlled substance tracking that supports your DEA compliance.
QuickBooks Online · Gusto · Ramp — professional liability insured — month-to-month, 30-day notice
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Veterinary practices have accounting requirements most general firms have never seen. Pharmaceutical inventory COGS. Third-party financing reconciliation. Production-based associate compensation. Controlled substance documentation. Equipment depreciation on specialized medical assets. We handle every one.
What changes with TurnkeyCFO
Every service below is built for how veterinary practices actually operate — inventory-intensive, associate-compensated, third-party-financed, and equipment-heavy.
Full monthly close for your veterinary practice — accurate categorization of medical revenue, pharmaceutical COGS, associate payroll, staff wages, facility costs, and equipment. Monthly close package with P&L, balance sheet, and written commentary ready for your review every month.
Pharmaceutical and medical supply purchases recorded to inventory — not expensed at purchase. COGS recognized when product is dispensed to patients. Inventory value on the balance sheet reflects what's actually on your shelves. Gross margin on medical services reflects the true cost of what was delivered. If you use practice management software (Avimark, EzyVet, Cornerstone, Impromed), we reconcile to your dispensing records.
Third-party financing deposits reconciled to originating invoices every month — gross invoice, financing fee, net remittance, and timing difference each tracked separately. Your accounts receivable reflects only what you actually expect to receive. Financing fees tracked as a distinct expense line so you can see the true cost of offering client financing. No more mystery gaps between invoiced revenue and bank deposits.
Associate veterinarian production pay (typically 18–25% of production) calculated correctly per pay period — gross production by associate tracked in your practice management software and reconciled to payroll. Contra-production adjustments (refunds, discounts, write-offs) accounted for before the percentage is applied. Every associate's compensation documented and reconciled before payroll runs.
DEA-regulated pharmaceuticals tracked in a dedicated expense account separate from general pharmaceutical inventory. Controlled substance purchases reconciled to your DEA log on a regular basis. If your financial records and your DEA usage log ever diverge, we find the discrepancy before it becomes a compliance issue. Controlled substance cost visibility also helps identify shrinkage that should be investigated.
Major veterinary equipment — digital radiography systems, ultrasound units, dental units, surgical tables, anesthesia machines, laboratory analyzers, and centrifuges — depreciated over their useful lives on a documented schedule. Purchases correctly classified as capital expenditures vs. repairs or maintenance. Your balance sheet reflects real asset value; your monthly P&L shows smooth depreciation expense rather than lumpy write-offs when you buy new equipment.
Veterinary medical services, boarding, and grooming have very different cost structures and margins. We track revenue and direct costs by service category so you see true medical margin separate from boarding and grooming. Multi-doctor practices get revenue allocation by associate — the foundation for production compensation calculations and practice performance evaluation.
Tax filings and legal matters — coordinated with your CPA or attorney. TurnkeyCFO does not provide tax or legal advice; we keep your books filing-ready and support the process.
The day-to-day realities most bookkeepers have never touched. We have.
Purchasing inventory and selling it are two different accounting events.
When you receive a pharma order and pay the invoice, you haven't had a cost yet — you've traded cash for inventory (an asset). The cost happens when you dispense the medication to a patient. Expensing at purchase distorts your P&L with lumpy spikes on order days and understates the true cost of care during high-volume months. Proper inventory COGS accounting gives you gross margin data you can actually use to run the practice.
Net remittance is always less than the invoice. The gap has a name.
CareCredit and Scratchpay collect from the client but pay you less — the difference is a financing fee ranging from 0% (client pays in full) to 13–15% (extended no-interest plans). Booking the deposit as revenue ignores the fee and overstates your collection rate. We record gross revenue at invoice, financing fee as expense, and net remittance as the collection — giving you a complete picture of what client financing actually costs the practice.
18–25% of production — but which production, and after which adjustments?
Production-based compensation sounds simple but has real complexity in practice: gross production includes the dispensing charge but should it include the exam fee? Does the associate's production percentage apply before or after refunds and write-offs? What about wellness plan revenue? We set up the tracking structure so the numbers are right before payroll runs — not discovered wrong after an associate question.
Financial records and DEA logs should always be reconcilable.
Your DEA log tracks controlled substance purchases and usage by unit. Your books track purchases by dollar amount. When a DEA inspection happens, discrepancies between your financial records and your usage log raise questions you don't want to answer under pressure. We keep controlled substance expenses in a dedicated account and reconcile periodically so your books and logs are always consistent and any discrepancy is caught early.
Veterinary equipment is capital-intensive. The accounting should reflect that.
A new digital x-ray system ($40,000–$100,000+) is a multi-year asset, not a one-time expense. Expensing it in the month of purchase creates a massive artificial loss and understates what the practice is actually worth. We capitalize major equipment, build depreciation schedules matched to useful life, and record monthly depreciation expense so your P&L and balance sheet both tell the right story. Bonus depreciation and Section 179 elections are coordinated with your CPA.
Per-associate revenue visibility is the foundation for production comp.
In a multi-doctor practice, knowing each associate's gross production by pay period is essential for compensation calculations, productivity benchmarking, and staff planning. We set up doctor-level revenue tracking that integrates with your practice management software so production numbers are reliable, compensation calculations are accurate, and you can benchmark each associate's contribution to practice revenue over time.
Simple, fast, and designed not to take you away from patient care.
We learn your practice — doctor count, associate compensation structure, financing providers, practice management software, pharma inventory approach, and current software. No sales pitch.
We connect to QuickBooks, review your chart of accounts, assess pharma inventory setup, map your associate production tracking, and build your depreciation schedule for existing equipment.
Monthly close package, pharma COGS tracking, CareCredit reconciliation, production comp by associate, controlled substance segregation, and equipment depreciation running clean from month one.
Pharmaceuticals and medical supplies are inventory — they become COGS when dispensed, not when purchased. We track pharma and supply inventory, record purchases to inventory, and recognize COGS when product is dispensed. Your gross margin on medical services reflects the actual cost of what was delivered.
Financing deposits don't equal the full invoice amount — there's a processing fee and sometimes a discount rate. We reconcile every CareCredit and Scratchpay deposit to the originating invoice, track financing fees as a separate expense line, and make sure your AR and cash always reflect actual net remittances.
Associate production compensation (typically 18–25% of production) requires tracking each associate's gross production by pay period, deducting contra-production adjustments, and calculating the percentage against your contract terms. We set up the compensation tracking so every associate's production-based pay is calculated correctly and reconciled to payroll before it runs.
DEA-controlled substances must be tracked with greater specificity than general pharma inventory. Separating them in your books supports your DEA log reconciliation and creates a clear audit trail. If your usage records and financial records ever need to be compared, having them in sync from the start is what matters.
Major equipment — digital x-ray systems, ultrasound units, dental units, surgical tables, anesthesia machines, and laboratory analyzers — should be depreciated over their useful lives, not expensed when purchased. We build and maintain a depreciation schedule for all capitalized equipment and correctly classify capital purchases vs. repairs.
Yes — and for most practices this matters. Boarding and grooming have very different cost structures and margins compared to veterinary medical services. We track revenue by service category so you see the real picture for each part of your business.
Yes. In multi-doctor practices, allocating revenue by associate is essential for calculating production compensation and evaluating each doctor's contribution. We set up doctor-level revenue tracking so you always have accurate production numbers by associate — the foundation for all production-based compensation calculations.
Month-to-month engagement, 30-day notice. No multi-year contracts. We keep clients because the work is good, not because paperwork traps them. Use the Instant Estimate to see a real price range before we ever talk.
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