Not only do busy dentists enjoy reducing their time doing accounting, but focusing on your craft is in your business’s best interest. Maximizing the hours you spend on your core competency is highly beneficial to your profitability. I’d like to share our Bookkeeping for Dentists monthly checklist with you and walk you through the items on it so you can also achieve the same quality bookkeeping. If you’re not the one doing your bookkeeping, then this would be great to share with your current bookkeeper or accountant to follow along. Have you ever looked at your bank account and did not know why the balance was too high or too low?
Thus, the accounting software is used for general financial management and to pay vendors and staff (accounts payable) with perhaps only 10 percent of the actual accounting software’s capability utilized. An accountant can provide advice on tax planning, financial management, and other areas related to your dental bookkeeping practice’s finances. Nowadays, all dental professionals should connect their business bank accounts and credit cards to solutions that can track their transactions and generate financial statements. A bookkeeping firm is trained and experienced in handling the specific needs of your dental practice.
Your time is better spent focusing on your core business activities (delivering dental care to your patients).
A good healthcare banker can answer your questions and help you get set up. Bankers are great, but finding a healthcare focused banker will benefit you because they are already familiar with your industry and potential needs. Ledgerbench is your https://www.bookstime.com/ trusted accounting & bookkeeping outsourcing service provider catering to SMBs who want to get their books in order at fraction of local costs. Accounting is a universal knowledge, its basics remain the same wherever you go and whatever you do.
That means you’re in-network with a dental benefit plan and usually involves collecting payments from insurance companies and patients. Problems can also arise when a dental practice owner plans to sell their business at the end of their career. While that’s a long-term financial goal, it creates many accounting challenges regarding practice valuation and retirement planning. Dental schools are great at teaching prospective dentists how to care for their patients’ oral health. However, they don’t share the knowledge dentists need to be effective small business owners.
How to start a dental bookkeeping checklist to follow in your practice today.
Healthcare is a growing industry and Dental Practices form a core of that. No matter the field of business you are in, the challenges and competition are at an ever-high. With the changing dynamics of the market, it is important to have a clear strategy for your business management, accounting advisory and bookkeeping schedule.
You’re a smart person, and may be fully capable of handling your own bookkeeping. Just because you’re capable of doing something doesn’t mean that you’re the best person for the job. As intelligent as you are, you most likely cannot manage your books as effectively, efficiently, and accurately as a skilled professional bookkeeper. Just as bookkeepers do not perform their own dental care, you should not be handling your own bookkeeping.
Intro to Bookkeeping for Dental Practices
Consistency in data entry prevents backlogs which can make the job more complicated, and ensures you always have up-to-date financial information at your disposal. Regularly reconciling your bank statements, too, can help detect discrepancies and errors at an early stage when they are easier to sort out. Attention to detail is essential, while also striking the right balance so your chart of accounts captures all relevant financial information without becoming excessively complex. Consistency in naming conventions and account codes is critical, too, to prevent errors and make reconciliation easier.