13 Feb Bookkeeping for Dental Practice Managers Explained
As a dental practice manager, you’ve learned to be a jack of all trades. You keep the machine well-oiled and you fill in the gaps. You love your job and you do it well.
When you were hired as a dental practice manager, you had a general idea of what your responsibilities would include: office administration, patient relations, perhaps a little bit of marketing, maybe payroll. However, as the practice has grown, you’ve taken on new tasks and have had to learn on the job…a lot.
The good news is that you work for a great dentist. You’re being fairly compensated. You’re well appreciated by your team. The bad news? Some of these tasks, primarily those related to dental practice bookkeeping and accounting, are well outside your area of expertise. Because you’ve been spending most of your time learning on the fly, the quality of the things you do well has slipped and you fear people are beginning to notice.
There’s a cost to doing all of your bookkeeping in-house.
Dental practice bookkeeping and accounting.
At Two Roads, we understand the concerns that come with juggling so many different (and unfamiliar!) responsibilities. As a bookkeeping and accounting firm, we want to give you a few tips on reconciling financial information to help relieve your stress and make your job a little easier.
The primary purpose of bookkeeping is to reconcile financial information and make informed decisions based on those results. If your bookkeeping is not done properly, you are making business decisions with poor information and big problems can arise. This includes internal theft, unpaid bills, uncollected receivables, tax delinquencies, and unpleasant run-ins with the IRS.
Dental practice financial records.
When keeping financial records, be sure to include:
- Point of Sale transactions
- Company bank accounts
- Medical insurance billing
- Accounts payable
- Accounts receivable
- Cash flow
Use this information to compose a profit and loss summary which can then be incorporated into your monthly financial report. This can help you (or your dentist) make informed financial decisions.
While you’re not afraid to accept a challenge, you see wisdom in being careful in choosing the challenges you accept. Bookkeeping is a full-time job in and of itself. (If it wasn’t, we wouldn’t exist!)
So, what if you’re in a position where you can’t do your true job well and manage dental practice financials accurately? It may be a good idea to talk with your dentist about outsourcing those duties to someone else.
Benefits of outsourcing dental practice bookkeeping.
- Time currently spent on bookkeeping can be applied to doing your true job and bettering the dental practice.
- The dental practice will only pay for what it needs and therefore saves money by cutting productivity costs. This means a bigger budget for things like annual raises!
- You can be confident in the accuracy of the results and can manage the office accordingly because the books will be done by experts in the field .
- You can focus on the tasks you were originally hired to do, rather than financials. This will improve your patients’ overall experience.
- Instead of being primarily responsible for the practice’s bookkeeping (which can be a dangerous place to be when you’re not an expert!), you will have access to an entire team. This means more consistency in bookkeeping best practices and more application of financial strategy.
- The practice will have access to some of the best bookkeeping programs, which will backup and save data for years, making it easy to retrieve financial records later down the road.
Looking for real life examples? Click here to read how one CEO describes the benefits of outsourcing his accounting and how it helps his bottom line.
We can help.
We like to think investing in professional bookkeeping is like buying the roadmap to your success. Here’s why.
Our services are designed to remove the burden of bookkeeping from those who already have too much on their plate (or toothpaste on their toothbrushes). By allowing us to handle the more complicated aspects of practice financials, you can focus on running the show, managing your team, and connecting with people.
For more information about how you and your dentist can benefit from using Two Roads, please contact us at 865-212-0063.
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