HIPAA compliance is woven into nearly every aspect of healthcare operations — from employee training and internal audits to patient consent forms and network security testing. But one area that’s often overlooked is accounting software.
That oversight can be costly.
A single breach involving billing or financial data tied to patient information can expose electronic protected health information (ePHI), triggering regulatory penalties, reputational damage, and loss of trust. According to the HIPAA Journal, hundreds of large healthcare data breaches are reported to the U.S. Department of Health and Human Services each year, affecting millions of individuals and resulting in penalties that can exceed $1.5 million per violation.
For healthcare organizations, HIPAA compliance isn’t just a technical requirement — it’s a financial and operational imperative.
What is HIPAA-compliant accounting software?
HIPAA-compliant accounting software is designed to protect electronic protected health information (ePHI) that may exist within financial, billing, or operational data. This includes systems that store, process, or transmit patient-related financial information such as billing records, insurance data, or identifiers linked to payment activity.
If your accounting platform touches patient-related financial data, it must apply the same HIPAA safeguards required of clinical systems and electronic health records (EHRs).
What HIPAA compliance means for healthcare accounting systems
HIPAA protects patient medical records and any data that can identify an individual when linked to healthcare services. In accounting and billing systems, this often includes:
- Names and contact information
- Email addresses and telephone numbers
- Social Security numbers
- Insurance beneficiary and plan numbers
- Driver’s license numbers
- Identifying photographs
- Any data that can reasonably identify a patient
With nearly all healthcare organizations now using electronic health records (EHRs), the HIPAA Security Rule extends protection beyond clinical systems to any platform that stores or transmits ePHI — including accounting software, payment systems, and integrated financial tools.
HIPAA safeguards for accounting software
HIPAA defines three categories of safeguards that apply to any system handling ePHI. Accounting software is no exception.
Technical safeguards
- Role-based access controls and user permissions
- User authentication and multi-factor authentication (MFA)
- Audit controls that record system activity and data changes
- Encryption of data at rest and in transit
Administrative safeguards
- Security policies and workforce training
- Incident response and breach notification procedures
- Data backup and disaster recovery plans
Physical safeguards
- Secure data centers and infrastructure
- Controlled physical access to systems and devices
Any vendor or service provider with access to ePHI — including accounting software providers — is considered a business associate and must support HIPAA compliance obligations, including breach notification requirements.
Must-have features of HIPAA-compliant accounting software
Not all accounting platforms marketed to healthcare organizations are built with HIPAA in mind. When evaluating solutions, these features are essential.
1. A full audit trail
A complete, tamper-evident audit trail tracks who accessed data, what changes were made, and when. This is critical for HIPAA audits, internal controls, and reducing fraud risk as organizations grow.
2. Role-based and limited user permissions
Granular user permissions ensure only authorized staff can access sensitive billing or financial data tied to patients. This reduces exposure risk and supports the principle of least privilege.
3. Secure authentication and payment processing
Healthcare organizations are frequently exposed to risk through third-party vendors. Accounting software should support:
- Multi-factor authentication
- Zero Trust access controls
- Encrypted and tokenized payment workflows
- Secure vendor and system integrations
4. Encryption and secure integrations
Data should be encrypted both at rest and in transit, with secure APIs for integrating EHRs and other healthcare systems. Reducing manual exports and imports helps minimize exposure to ePHI.
5. Multi-entity accounting and reporting
Healthcare organizations operating multiple locations, clinics, or legal entities need secure, centralized financial oversight without duplicating data or increasing compliance risk.
A true multi-entity accounting system allows organizations to:
- Maintain separate ledgers for each entity or location
- Consolidate financials in real time
- Reduce manual data entry and reporting errors
- Support growth without adding compliance complexity
How Gravity supports HIPAA-compliant healthcare accounting
Gravity’s healthcare accounting software is built on the Microsoft Power Platform, providing a secure, enterprise-grade foundation for healthcare financial operations.
By leveraging Microsoft’s security architecture, Gravity supports:
- Role-based access and centralized identity management
- Encryption aligned with Microsoft platform standards
- Secure integration with EHR and healthcare IT systems
- Automated updates and continuous security enhancements
Microsoft’s Security Development Lifecycle (SDL) ensures that Gravity’s platform adheres to rigorous security and privacy standards, helping healthcare organizations maintain compliance as regulations and threats evolve.
Why healthcare organizations choose Gravity
Healthcare finance teams often outgrow entry-level accounting tools that weren’t designed for regulated environments or multi-entity complexity.
Gravity helps healthcare organizations:
- Reduce manual handling of ePHI across systems
- Support secure, real-time multi-entity reporting
- Improve audit readiness and financial visibility
- Scale operations without increasing compliance risk
Unlike small business accounting software, Gravity is built to support complex healthcare structures, growing organizations, and long-term operational needs.
See how Gravity supports HIPAA-compliant, multi-entity healthcare accounting.
Schedule a personalized demo to explore how it fits your organization’s structure and workflows.
Gravity Software.
Better. Smarter. Accounting.
Frequently
asked
questions
What is HIPAA-compliant accounting software?
HIPAA-compliant accounting software applies required technical, administrative, and physical safeguards to protect ePHI within financial and billing systems.
Does HIPAA apply to accounting and billing systems?
Yes. If accounting or billing data includes patient identifiers or is linked to healthcare services, it is considered ePHI and must be protected under HIPAA.
Is QuickBooks HIPAA compliant?
Most small business accounting platforms are not designed to support HIPAA compliance requirements such as audit controls, role-based access, and secure integrations at scale.
What is multi-entity accounting, and why does it matter in healthcare?
Multi-entity accounting allows healthcare organizations to manage multiple locations or legal entities within one system while maintaining separation, security, and real-time consolidated reporting.
How does Gravity help healthcare organizations comply with HIPAA?
Gravity provides a secure accounting platform built on Microsoft technology, supporting encryption, access controls, audit trails, and secure integrations required for HIPAA compliance.