Texas franchise tax help
Keep the PLLC/PA margin-tax figures clean for your practice entity.
Franchise tax helpTexas · Healthcare Accounting
Texas medical-practice accounting that reconciles what you’re actually paid.
Texas practice books turn on two numbers: what payers actually remit against what you billed, and how much of it the franchise tax lets you exclude. We reconcile insurance AR and reimbursement, keep collections coded by payer, run clean provider payroll, keep the PLLC margin-tax figures straight, and track equipment for the BPP rendition — prepared by a senior bookkeeper who works in your software, or by a signed specialist practice when your books need one. Books only; we never touch PHI.
If your file needs our paid diagnostic first, its fee is credited in full against the cleanup. Either way, you get a fixed fee in writing before any work starts.
State rule
Texas rule: a health care provider excludes from franchise-tax total revenue its Medicaid, Medicare, CHIP, Indigent Health Care and Treatment Act, workers’ compensation and TRICARE payments (a health care institution, 50%); QuickBooks codes collections by payer, so the exclusion is a report. Source: Texas Tax Code §171.1011(n).
§ The short version
Texas healthcare accounting from TechBrot reconciles what payers actually remit against what your practice billed, runs provider payroll and keeps PLLC franchise-tax figures straight, from financial data only, never PHI. Collections are coded by payer so the Medicaid, Medicare, CHIP, workers’ compensation and TRICARE exclusion under Tax Code §171.1011(n) is a report, not a rebuild.
They took something that felt overwhelming to me as a first-year business owner and made it simple.
What stood out the most was TechBrot Inc’s attention to detail.
Intuit QuickBooks Certification Level 2 and QuickBooks Workforce Certification,
§ 01 · Why Texas practice books break
Three places Texas practices lose the numbers.
Billed isn’t collected, and payroll is complex. Knowing which gap you’re in tells us where to start.
01Collections
Billed but never collected
Contractual adjustments, denials, and clawbacks mean collected revenue is often well below billed — and a practice that tracks billed numbers is flying on a figure that isn’t real.02Payroll
Provider & staff payroll complexity
Multiple providers, mixed W-2 and contractor arrangements, and benefits make practice payroll complex — and errors here are expensive and recurring.03Entity & tax
PLLC margin-tax figures
As a PLLC or PA, the practice owes the franchise (margin) tax — and without clean revenue and payroll figures, the margin can’t be computed accurately. If deposits aren’t coded by payer, the Medicare, Medicaid, CHIP, workers’ comp, and TRICARE payments Texas lets a provider exclude can’t be totaled either.§ 02 · What TechBrot handles
What we reconcile for a Texas practice.
Every engagement is scoped to your practice, delivered in your own QuickBooks file by your TechBrot team, with every close reviewed by a Certified QuickBooks ProAdvisor — from financial data only.
01
Insurance-AR reconciliation
Collected reconciled to billed — contractual adjustments, denials, and clawbacks accounted for — from billing summaries, not patient records.
Bookkeeping services02
Provider & staff payroll
Clean payroll for providers and staff, W-2 and contractor arrangements handled, coordinated with your payroll provider.
Payroll03
PLLC margin-tax figures
Revenue, payroll, and expenses kept clean, with collections coded by payer so the §171.1011(n) health care exclusion totals itself, so your CPA can compute the franchise (margin) tax for the PLLC or PA.
Franchise tax help04
Equipment on the BPP rendition
Medical and dental equipment tracked on a fixed-asset schedule by location, so the $125,000-per-location exemption that applies from 2026 and the business personal property rendition both read straight from the books.
Monthly bookkeeping05
Provider-level profitability
Reporting that shows profitability by provider or location so compensation and capacity decisions rest on real numbers.
Financial statements06
Monthly close that ties
A monthly close with collections reconciled and payroll clean — CPA-ready and decision-ready.
QuickBooks accountant§ 03 · Tools we work alongside
Connected to how you bill — financials only.
- Financial exports from your practice-management / EHR system
- QuickBooks Online or hosted Desktop — your file
- Gusto, ADP, and healthcare payroll providers
- Merchant and patient-payment processors (summary level)
- Bill.com for vendor and supply AP
- Payer remittance summaries (financial data only)
We reconcile from the financial summaries your systems produce — deposits, remittance totals, payroll — never from patient records or PHI.
§ 04 · How engagements work
From billed to actually collected.
Every Texas healthcare engagement follows the same rhythm — books accurate first, collection visibility second, advisory third.
- Step 1
Free practice review
A QuickBooks ProAdvisor reviews your collections reconciliation, payroll, and entity setup — from financial data only, at no cost. - Step 2
Written fixed-fee scope
A written scope and fixed fee within 3 business days — setup, cleanup, or monthly. - Step 3
Reconcile & clean
Insurance AR reconciled to collected, payroll cleaned, margin-tax figures organized — from financial summaries. - Step 4
Monthly collected-revenue close
A monthly close showing real collected revenue and provider profitability, CPA-ready.
§ 05 · Beyond the books
Clean collections are the start. Practice profitability is the point.
When collections reconcile and payroll is clean, the decisions get real: which payers and services actually pay, whether to add a provider or location, where overhead is outrunning collected revenue — answered from numbers that tie, not billed figures that flatter.
That’s where fractional-CFO advisory picks up, on cleaned-up books, in coordination with your CPA.
Checked against Tax Code §171.1011 and the Texas Comptroller.
§ 07 · Around this page
Around Texas.
Texas QuickBooks ProAdvisor & bookkeeping
The state page: services, industries, cities and the Texas tax terms in one place.Healthcare accounting, nationally
The national engagement this page is the Texas version of — same scope, same written fixed fee.Not sure where your file stands? Start with the free QuickBooks file review · how Texas compares: state-by-state tax quirks.
§ 08 · FAQ
Texas healthcare accounting questions.
What does Texas healthcare accounting include?
Insurance-AR and reimbursement reconciliation (collected vs billed), provider and staff payroll, PLLC/PA franchise (margin) tax figures, and medical/dental equipment on a fixed-asset schedule for the business personal property rendition — in your own QuickBooks file, from financial data only.
Do you access patient records, PHI, or our EHR?
No — this is a firm boundary. We work strictly from financial data: deposits, payer remittance totals at the summary level, payroll, and expenses. We never access protected health information, patient records, or the clinical side of your EHR. The financial summaries your systems export are all we need, and they contain no PHI.
How do you reconcile insurance reimbursement against billing?
We reconcile what was actually collected against what was billed, accounting for contractual adjustments, denials, and clawbacks, so your books show real collected revenue rather than billed revenue that overstates the picture. The data comes from your billing system’s financial summaries and your deposits — not from patient-level records.
How is a Texas medical or dental practice taxed?
Texas practices commonly operate as a PLLC or PA, which is subject to the Texas franchise (“margin”) tax; Texas has no state income tax. For reports due in 2026 and 2027, an entity at or below $2,650,000 in total revenue owes no tax, and the annual report is due May 15. A health care provider also excludes from total revenue its payments under Medicaid, Medicare, the Indigent Health Care and Treatment Act, and CHIP, workers’ compensation professional-services payments, and TRICARE payments, plus the actual cost of uncompensated care (Tax Code §171.1011(n); a health care institution excludes 50%). We keep the revenue, payroll, and expense figures clean, with collections coded by payer, so your CPA can compute the margin and file. We track the figures; your CPA computes the liability and files the return.
How do you keep the books ready for the Texas health care exclusion?
By coding every deposit to its payer class as it is posted — Medicare, Medicaid, CHIP, Indigent Health Care and Treatment Act programs, workers’ compensation, TRICARE, commercial insurance, and patient pay — and reconciling those totals to the remittance summaries each month. At year end the excludable total under Tax Code §171.1011(n) is a report your CPA can tie out, instead of a reconstruction from bank statements. Uncompensated care is tracked at cost where your CPA asks for it. We work from remittance totals and deposits only, never patient-level records; your CPA decides what qualifies and files.
Can you handle payroll for multiple providers?
Yes — we keep payroll clean for multiple providers and staff, including mixed W-2 employee and contractor arrangements and benefits, coordinated with your payroll provider. Practice payroll is one of the most error-prone areas, so getting it right and reconciled every period matters.
Do you work in my own QuickBooks file?
Yes — your file, your data, in QuickBooks Online or hosted Desktop, with a senior bookkeeper assigned to your file, and every close reviewed by a Certified QuickBooks ProAdvisor before it reaches you, reconciling from the financial exports your practice-management system produces.
Do you file my Texas taxes or handle HIPAA compliance?
No. TechBrot is a bookkeeping and advisory firm — we keep the books CPA-ready from financial data and coordinate with your CPA, who files. We don’t access PHI, provide HIPAA or regulatory-compliance advice, or represent clients before authorities, and we are not affiliated with Intuit Inc.
Texas healthcare practices start here