Even if you’re running an established dental office, there is always the possibility that your bookkeeping practices aren’t quite up to speed, or that your systems need streamlining.
Working with a dental office bookkeeping service can of course help, and is the most convenient way of addressing any issues that might be holding your dental office back. But there are plenty of simple things you can do as a dental office manager to keep better tabs on your financials through efficient bookkeeping practices.
With this in mind, here are some straightforward bookkeeping tips for your dental office:
Set up a tailored chart of accounts
Generic templates won’t represent the unique needs of your dental practice adequately enough, so begin by setting up a chart of accounts with categories specific to your practice, so that you can better track payments from patients, equipment costs, salaries and so on.
Reconcile transactions and bank statements regularly
From insurance reimbursements and supplier invoices, to payments from patients, lining up your internal records with your external records on a regular basis, helps you make sure that everything has been accounted for.
Monitor cashflow closely
A smooth-running practice requires constant cashflow management, so that you can comfortably cover ongoing expenses such as supplies, salaries, and rent. When you work with a bookkeeper, you’ll get valuable insights into your cashflow so that you can keep it steady over the coming months.
Get to grips with your tax deductions
While good bookkeeping is certainly the best way to run an organized dental office, it’s also one of the most effective ways to save practice owner’s money when tax season rolls around. There are plenty of useful tax deductions dental practices may be eligible to take, such as dental equipment, continuing education and license fees, and marketing and advertising to name but a few, but getting the most out of these requires the keeping of detailed expense records.
Dental practices are eligible for a wide range of tax deductions, but to take full advantage of them, you need to keep detailed records of every eligible expense. In doing so, dental offices can put themselves in a much stronger position when it comes to claiming deductions, and potentially lower their tax liability significantly.
Detailed bookkeeping for dentists helps them keep their practices organized and running smoothly, but it also helps ensure that they’re not paying out more in taxes than is necessary.
While dental office bookkeeping should never be so complicated that you neglect it entirely, it does require a little effort on the part of practice managers or dentists themselves. By covering the key basics of bookkeeping outlined above, such as setting up a chart of accounts, reconciling transactions and bank statements regularly, and meticulously tracking tax deductions, dental practices can keep their books clean and tidy, and their patients satisfied. That said, it’s sometimes easier all round to hire a dental bookkeeper; someone who can do all of the above and more, while you focus on everything else that makes your practice profitable.