From the desk of STAC Bizness Solutions CEO, Shawna Aho
NEWS FLASH: Running a dental practice is no small feat! As a practice owner, you’re responsible for ensuring the well-being of your patients, overseeing staff, maintaining equipment, and, of course, staying on top of your financials. While managing patient care is likely your top priority, handling the business side is equally important. That’s why many practices turn to professional bookkeepers to help manage their finances effectively.
There is a long list of reasons why it makes sense to consider getting help from a bookkeeping pro, but today I’m going to cover only what I believe are the top 5.
- It Ensures Accurate Financial Records
Keeping accurate financial records is critical to the success of any practice. A professional bookkeeper has the knowledge and experience to track income, expenses, payroll, and other financial data meticulously. This ensures that your records are up-to-date and compliant with regulatory requirements, minimizing the risk of errors that could lead to penalties or audits.
In the fast-paced environment of a dental practice, mistakes in your financials can lead to costly consequences, whether it’s underestimating tax obligations or overpaying vendors. A professional bookkeeper can help you avoid these pitfalls by ensuring that your financial records are precise and reliable.
- It Frees Up Time for Other Priorities
As a dentist, your time is best spent treating patients and managing the clinical aspects of your practice—not crunching numbers. By outsourcing bookkeeping to a professional, you free up valuable time that can be reinvested in patient care and growing your practice.
Additionally, because bookkeeping requires a detailed understanding of financial transactions, a professional can handle it far more efficiently than someone who is juggling multiple responsibilities. This time-saving advantage allows you to focus on what you do best—caring for your patients and building a thriving practice.
- It Provides Clarity Around Cash Flow
Cash flow is the lifeblood of any business. For dental practices, managing cash flow can be especially challenging due to the nature of billing cycles and insurance payments. A professional bookkeeper can help ensure that you have a clear picture of your financial health by tracking payments, monitoring outstanding invoices, and managing expenses.
Proper cash flow management can help prevent unexpected shortfalls and ensure you have enough resources to cover operating expenses, payroll, and supplies. This proactive approach can lead to smoother operations and less financial stress for you as a practice owner.
- You’ll Be Ready (And Stress Free!) Come Tax Time!
Tax season can be overwhelming for dental practice owners, especially if financial records are not organized throughout the year. A professional bookkeeper ensures that your books are prepared for tax filing, making the process much less stressful. They also stay up to date on tax laws and can help identify deductions that may be specific to your industry.
By having a professional keep your records in order all year long, you’ll avoid the last-minute scramble to prepare documents, reducing the risk of filing errors or missed opportunities to save on taxes.
- It Helps You Make Better Decisions
As your dental practice grows, so do the complexities of managing its finances. A professional bookkeeper can scale with your practice, helping to identify areas of financial improvement and providing insights into profitability and cost management. With their expertise, you’ll have a better understanding of where to invest resources, how to manage overhead costs, and when to consider expanding.
Having a trusted advisor in the form of a bookkeeper can be very beneficial as you navigate the challenges of growing your practice. However, there may be a common question floating around in your mind…
“Can’t I Just Use Online Bookkeeping Software?”
It’s true that many dental practice owners are drawn to online bookkeeping software for its convenience and affordability. Software like QuickBooks, Xero, and others offer a range of features that help automate many of the manual tasks involved in bookkeeping, such as invoicing, tracking expenses, and generating financial reports.
There’s no question, these tools can make it easier to manage your practice’s finances on a day-to-day basis. However, while online bookkeeping software is helpful, it is not a substitute for the expertise of a professional bookkeeper. Here’s why:
Bookkeeping software can only do so much—it processes data that you input, but it cannot interpret the specific financial nuances of a dental practice. Dental practices have unique financial considerations, such as dealing with insurance payments, patient billing, and tax deductions specific to healthcare providers. A professional bookkeeper understands these complexities and can ensure that your financial data is categorized and managed properly, preventing costly mistakes.
In addition, a professional bookkeeper goes beyond just keeping your books in order. They can help you leverage your financial data to make informed business decisions. Whether it’s understanding your cash flow, identifying areas to cut costs, or planning for growth, an experienced bookkeeper can provide personalized insights that software alone cannot. They can also ensure you’re fully compliant with changing tax laws and regulations, which can vary for healthcare practices.
So while online bookkeeping software can be a useful tool, it works best in combination with the expertise and strategic guidance of a professional bookkeeper. Together, they ensure your dental practice’s financial health is managed efficiently and effectively.
As a highly experienced bookkeeping and payroll specialist in the dental industry, STAC Bizness Solutions stands ready to help! To learn more about us, feel free to visit our website at https://stacbiz.com or call us at 844-424-9637.
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7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
There’s no denying it. Creating a thriving practice is about much more than practicing medicine!
Topping the list of “other” priorities is your practice’s financial management. In this short guide, the experts at STAC Bizness Solutions outline 7 financial best practices that differentiate struggling practices from those which are highly profitable and experiencing healthy levels of growth.