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As your practice grows, outsourcing allows for seamless expansion without the need for additional in-house resources. The initial transition to outsourcing may require time for adjustment. Dentists and their teams need to adapt to new workflows and communication channels. Track the ROI of major expenses, such as marketing initiatives or technology investments. This analysis helps prioritize spending on initiatives that yield the highest returns.

Lowering your clinic’s costs

Whichever way you decide is best for you, make sure your loan balance on the balance sheet matches the principal balance of your loan that the bank has for the specified period. Therefore, at the top of our checklist, we list items that we need to remember before we start anything.

A Guide to Efficient Bookkeeping for Dentists

Managing patient receivables and collections is vital for maintaining cash flow and sustaining the financial health of a dental clinic. Dental clinics often rely on insurance payments to supplement patient revenue. Efficient tracking of insurance payments is crucial for financial transparency and effective revenue management. Recognize revenue when services are provided, irrespective of when payment is received. This method provides a more accurate reflection of the clinic’s financial performance.

Management

Track claims submitted, dental bookkeeping payments received, and any discrepancies. There are so many different kinds of software systems available and it can be kind of overwhelming to know which one to use. Accounting software is a compliment to your dental practice-management software. Using QuickBooks online will give you instant access to all your reports and finical information in one location.

Passive income: Doing well by doing what’s best for your patients

• This will allow you to collaborate easily with external bookkeepers and accountants without them having to come into your practice to obtain the data.
• At the end of each month, we wrap up all financial activities, giving you a clear picture of your practice’s finances to guide your decisions.
• We believe that your time is better spent on treating patients and building your practice and relationships than worrying about your finances and accounting issues!
• Sure, you could use the weekend to maintain your financial records… but you should spend that offline time to build your practice and relax.
• As mentioned before, we can provide expert dental consultation on top of the bookkeeping.
• To help you set yourself up for success, here are some common pitfalls dentists fall into that you should know to avoid.

Benchmark your practice’s financial performance against industry standards. This comparative analysis helps identify areas where your practice excels and areas that may benefit from improvement. Explore options for suppliers, negotiate contracts, and implement strategies to maximize the value of each expense. Identify areas of the budget that contribute most to practice growth, and allocate resources accordingly.

Ensure that staff responsible for bookkeeping tasks receive adequate training. This includes understanding the chart of accounts, utilizing accounting software, and following established bookkeeping procedures. Record depreciation expenses regularly based on the established schedule.

Ensure all documentation for deductions is organized and readily available. This includes receipts, invoices, and supporting documents for claimed expenses. Deduct premiums paid for professional liability insurance, business insurance, and other relevant policies. Strive for a precise reconciliation where the ending balance in your records matches the ending balance on the bank statement. This may involve correcting errors in your records or addressing issues with the bank.

Consider working with a tax professional to ensure that you take advantage of all available deductions and credits and that your tax returns are accurate and timely. Cash flow is essential for the financial health of your practice. Regularly monitor your cash flow to ensure you have enough money to cover your expenses and invest in your practice’s growth. They can help you create custom reports that will track the profitability of each new and recurring patient and measure the overall growth of your practice. And, if you have more than one practice location, an outsourced bookkeeping firm can help track the performance of each individual practice, allowing you to compare their performance.

Our flexible bookkeeping solution can be tailored to the specific needs of your practice. Another tool in QuickBooks, not in Quicken, is the Accountant’s Review. This handy tool allows you to make an Accountants Copy for your accountant, who can then make adjustments to your finances, entries for tax purposes, etc. With QuickBooks, you can continue to write checks, create payroll, and run reports without any time delays or having to reenter any information. Features are similar between the two, but with very distinct differences. QuickBooks reporting is geared specifically toward organized businesses.