Why Every Private Practice Needs HR (and What HR Doesn’t Do)

Julie Herres
Nov 7
4 min read

At GreenOak Accounting, we work with private practice owners every day—and one thing we see over and over is that HR is often the last thing on your mind when you start hiring. But having good HR support isn’t just for the big companies. It’s what keeps your team happy, your practice protected, and your business moving forward.

But let’s get something straight right out of the gate: HR is not accounting, and it’s not legal. As an accounting firm, we know exactly where our expertise begins and ends—and HR is its own world, just like legal. Each has a critical role in your private practice, and none are interchangeable.

The Basics: Benefits, Compliance, and Clear Policies

Most private practices start with no benefits at all (unless your state requires something specific, like sick leave). That’s completely normal! But as soon as you have employees—even just one—there may be new rules and requirements to keep up with.

Here’s what every practice owner needs to keep in mind:

Benefits: What’s Required and What’s Optional?

Health insurance: You might offer a group plan or a stipend, but whether you can offer a stipend, and how it should be handled, is something to check with HR and your accountant.
Retirement plans: Some states require you to set up a retirement plan if you have over a certain number of employees. Often, you’re just required to administer it, not contribute.
Paid sick leave: Some states and cities require this, sometimes even for just one employee.
Paid time off: Vacation, holidays, and personal days are not required by federal law, but some states mandate a minimum amount of paid time off.
Unpaid time off: This one trips up a lot of practice owners! Unlimited unpaid time off sounds great on paper—until you realize you don’t have clear guardrails. You want guidelines about how and when unpaid time off can be used, so your practice (and your clients) are protected. Of course, exceptions for medical or parental leave can always be made, but having written guidelines is best practice.

Clear, Written Policies

Having policies in writing is about more than just compliance. It’s about clarity, fairness, and protecting your practice from misunderstandings. Good HR helps you set policies for:

Attendance and punctuality
Requesting time off, both paid and unpaid, and how approvals work
Confidentiality and professional boundaries
Scheduling and client appointments
Eligibility for benefits, and how to enroll

A written policy gives everyone a fair playing field and means you don’t have to make things up as you go.

HR, Accounting, and Legal: Who Does What in Your Practice?

It’s easy to get these roles mixed up, so here’s how we like to explain it:

HR (Human Resources): Your HR professional is your go-to for people management and compliance with employment law. They know your state and city requirements, can help you administer required benefits, ensure you’re treating employees fairly, and be your sounding board for difficult situations—like whether to offer a health insurance stipend, how to handle medical or parental leave, or if it’s time to update your employee handbook.
Accounting: That’s us! We help you determine what you can afford, estimate costs, and set up benefits and payroll correctly—making sure everything is tracked, taxed, and reported accurately. For instance, whether a health insurance stipend is taxable isn’t a “choose your own adventure”—an accountant can let you know what the rules are and make sure everything is recorded correctly in your payroll system.
Legal/Attorney: Your attorney is the one who makes sure your policies are legally sound and compliant with all federal, state, and local laws. They can help you review contracts, draft policies, and ensure your practice is protected from a legal standpoint.

Bottom line: These three are not interchangeable. Each brings their own expertise, and sometimes you need them all working together—especially as your team grows.

What Happens If You Skip HR (or Think Your Accountant or Attorney Can Do It All)?

Without clear HR guidance:

You may unintentionally break the law (resulting in fines, audits, or lawsuits).
Employees may feel treated unfairly, which impacts morale and retention.
You might struggle when “sticky” situations come up, like a tricky time-off request or an employee issue.
You could miss state or city requirements for benefits, sick leave, or retirement plans.

Accountants and attorneys are essential, but neither is a substitute for good HR.

Real-World Example: How All Three Experts Work Together

Imagine an employee requests a health insurance stipend because you don’t offer a group plan.

HR: Confirms if a stipend is allowed in your state, and if it can be offered to a single person on your team.
Accountant: Advises whether the stipend is taxable and sets it up correctly in payroll.
Attorney: Reviews your policy to ensure it doesn’t create legal risks or unintentional discrimination.

HR is Your Practice’s Safety Net

Great HR isn’t about red tape or corporate bureaucracy—it’s about building a practice where your team can thrive, where you can grow confidently, and where surprises are kept to a minimum.

Protect your business and your people
Attract and keep a great team
Stay compliant with ever-changing laws
Spend more time helping clients, less time putting out fires

Ready to talk about setting your practice up for success? Schedule a free consultation to talk through your accounting needs.

This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney, or advisor regarding your particular facts and circumstances.

GreenOak Accounting specializes in working with private practice owners across the United States. For more information on our services, visit our website.