Bookkeeping is a crucial element of any successful dental practice, but for busy dentists who prefer focusing on patient welfare and quality of care, it can feel like tracking payments, taking care of insurance claims and balancing the books, are more than they can, or want, to handle. Fortunately, there are ways to streamline bookkeeping so that you can carry on giving your patients the very best care, while not losing track of important financial records. While one of the simplest and most convenient ways is to hire a dentist bookkeeper, you can also test out the following tips:
Set up a custom chart of accounts
Instead of using a one-size-fits-all template for your chart of accounts, it’s best to use a system that has been tailored to the unique needs of your practice. With a setup that tracks important categories such as dental supplies, staff salaries, patient payments and equipment costs, you can easily see exactly where your money is going, and when it might be necessary to make adjustments to your budget.
Reconcile transactions and bank statements regularly
From insurance reimbursements and patient payments, to supplier invoices, your internal records should align with external records like bank statements. By regularly reconciling these, you can quickly spot missed payments or improperly processed insurance claims, and make sure that all is accounted for while maintaining a healthy cashflow.
Manage cashflow effectively
Critical to the smooth-running of any dental practice, cashflow must be managed efficiently; without this, you’ll struggle to pay regular expenses such as salaries, rent and supplies. With accurate bookkeeping, you can gain insights into your cashflow that will help you better forecast your costs and cover them with ease.
Understand tax deductions
With comprehensive bookkeeping, you can do so much more than keep your practice organized, you can also save money on taxes when tax season rolls around. There are a number of tax deductions dental practices are eligible for, but only with detailed and up-to-date records will you be able to take advantage of them. Some common deductions include: dental equipment, marketing and advertising, and continuing education and licensing fees.
Seeking professional help from dental bookkeepers and accountants
Without help from specialist dental practice accounting, many dentists and practice owners struggle to cope with running the operational side of their business alongside the financial side. Bookkeeping and taxes are time consuming, and without specialist knowledge, can prove tricky for dentists to manage effectively.
Dental bookkeepers and accountants have specific knowledge of the dental industry, and can apply their experience to individual practices, helping them achieve sustainable profitability through maximizing deductions, keeping them compliant, managing their cashflow more efficiently and ultimately, lowering their stress levels.
Whether you’re a dentist just starting out on your dental journey as a practice owner, or a seasoned dental practice owner with many years under your belt, seeking third party assistance for bookkeeping and accounting is a fantastically convenient and cost-effective way to reduce the stress of running a busy practice, and afford you more time for the things that make you tick, such as patient care.