Choosing the Right Bookkeeping System for Your Dental Practice

Most dentists prefer to focus on client work rather than business management, but you can’t afford to neglect the function. To better determine how each site performs, take advantage of your class or location tracking functionality in your accounting software. It is crucial to understand the performance of each individual location so that you can perform financial comparisons across all of your practices and find ways to improve each clinic. In many dental offices, it becomes the receptionist or office manager’s duty to take over the bookkeeping, and in most cases, this personnel isn’t adequately trained to handle this task.

I am now ready to get another bookkeeper and be able to guide them to have my books exactly as I want. Seychelle is a Maryland-based personal finance writer and business owner. She’s passionate about helping others out of financial pitfalls she’s already dug herself out of. Most of her finance knowledge stems from her career as a Financial Consultant and Branch Manager at the 7th largest US bank. You run the risk of omitting important information without the use of a dentistry-specific chart of accounts. This might affect you further down the line when you transfer those figures to other financial reports.

A Practical Guide To Dentist Accounting

Hiring an in-house bookkeeper can be extremely costly and doesn’t make good financial sense for most practices, so outsourcing to a bookkeeping firm is your best option. You can arrange your chart of accounts to track the areas that pertain to your business model. For example, the payroll for your receptionist would be considered an overhead expense. In contrast, the dentists’ and hygienists’ payroll would be considered to be part of the Cost of Sales.

Learn how to do bookkeeping correctly for a dental practice in QuickBooks Online, from start to finish. You’ll finally know how to read and use your financial reports https://www.bookstime.com/ to run your practice more like a business. Opening your dental practice is exciting, but it comes with a significant increase in accounting responsibilities.

Bookkeeping Services

Therefore, at the top of our checklist, we list items that we need to remember before we start anything. Fortunately, you can automate those functions with accounting software. With years of training and expertise, we know how to help your practice achieve greatness. This course perfectly summed up the years of education that Sona provided me while working together.

Far too often, cash flow gets confused with profit, but it’s important to remember that these aren’t the same thing. Many dentists think that profit represents excess cash they can spend on purchases, but this isn’t necessarily the case. If you choose to work with an experienced bookkeeping firm like Enkel, you can get the professional assistance dental bookkeeping you require when setting up your chart of accounts. Many of the newest dental management software programs, like ClearDent, now include crucial functionalities like time tracking, billing, and inventory management. A program like Dext Prepare will allow you to capture your invoices and receipts by taking a snapshot of them with your smartphone.

Dental Office Bookkeeping Checklist:

Effective accounting and bookkeeping are essential for the success of your dental practice. Don’t underestimate the importance of financial management in dental practice management – it can make all the difference in the success of your practice. In conclusion, effective accounting and bookkeeping are crucial for managing a successful dental practice. By implementing the best practices and tips outlined in this blog, you can streamline your finances, reduce stress, and focus on providing quality patient care. Don’t hesitate to seek professional help if you need it, and remember that financial management is a continuous process that requires ongoing attention and effort.

• On top of that we help an additional dentists on average through the buyer-rep transition or start-up process each year.
• Depending on what works for your business you could also choose to close books annually.
• Remember that financial management is an ongoing process that requires regular attention and effort.
• It can also integrate with other tools like Dext Prepare to help manage your expenses.

Dentists are rarely excited by the prospect of financial concerns interfering with their craft, but you can’t afford to ignore that aspect of your responsibilities. Dental practices are businesses, so you must understand the monetary aspects to run them well. Dentists accept the lower prices insurance companies set for their services in exchange for the consistency of capitation payments and increased patient volume due to insurance referrals. That’s because litigation is one of the most significant risks in the healthcare industry, and you can’t afford to leave yourself exposed. As a result, dentists generally must choose from corporate and LLC structures.