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20 June, 2022

Benefits of Bookkeeping for Dentists

Being a dentist takes up a huge amount of time and energy.  There are the demanding duties related to dental services, as well as office administration, patient relations, some marketing, and overseeing the dental practice as a whole.  Just the idea of adding another responsibility, let alone managing your finances, might seem overwhelming and even impossible. Services like bookkeeping for dentists help things run smoothly.

Outside of your daily dental services, there is nothing more important to your practice than tending to bookkeeping functions. Dental businesses need extensive accounting and bookkeeping in order to have their practice operating smoothly.

Your bookkeeper has an immense responsibility to manage every aspect of your practice’s finances. It is highly unlikely that your spouse, assistant, or friend could handle comprehensive bookkeeping duties sufficiently as needed. Bookkeepers are required to have extensive knowledge and a deep understanding of the law, the tax code, and various accounting standards.

What Do Bookkeepers Do?

 Your bookkeeper handles many complex and intricate duties. She typically will be involved in all financial transactions for the dentist, record purchases, sales and expenses, and develop systems.

A competent bookkeeper makes it possible for your dental practice to have a holistic snapshot and overview of your business’s finances, as well as projected growth forecasts, and much more.  Your dental practice gains significant value when you have a dedicated team handling your bookkeeping services. 

7 Benefits of Hiring a Bookkeeper for Your Dental Practice

1)     Awareness of Possible Cash Flow Issues

As a dentist and business owner, your schedule is typically chaotic with little time to take on more responsibilities, and that includes financial services like bookkeeping. If it is just you overseeing all aspects of your practice, it is quite possible invoices or dues escaped your attention. This could put your dental business in jeopardy. 

An experienced, professional bookkeeper is charged with tracking all of your income and expenses, and alerting you of potential cash flow problems, and then guiding you on how to prevent cash flow issues from arising in the future.

In short, your bookkeeper will be responsible for organizing your dental practice books to help you manage cash flow.

2)     Focus on Your Dental Services

Your primary allegiance in your dental practice is tending to your patients. After all, your core competency is improving the oral health of the people who visit your dentist office.

The best set up for your dental business is to have you, as the dentist, be able to focus on the varied dental needs of patients and identify ways to meet their needs more effectively and efficiently. This is where bookkeeping for dentists comes in. Hiring a professional bookkeeper frees you to perform dental services exclusively while having a skilled professional available to manage bookkeeping, accounting, and dental taxation.

By outsourcing your bookkeeping services, you take the tedious, time-consuming tasks of bookkeeping and payroll off your hands so you can focus on what you do best, which is tending to the dental needs of your patients!

3)     Prepare for a Tax Audit

Is your dental practice ready for an audit?  There has been an increase in audits of small businesses in recent years who have taken advantage of Covid-19 schemes and benefits.

Up-to-date records of transactions are imperative to prepare for any potential audits. This approach will help you navigate the intricate maze of compliances. Accurate records are vital to applying for federal or state loans, grants, or programs.

4)     Easier to Secure Loans & Sell

As a dental business owner, you may be planning to expand your practice to allow for new growth and as a way to increase your profit margin. If that is the case, then it is critical to have your books in meticulous condition. You might be thinking about selling your business as you are approaching retirement age or perhaps you want to move to a more suitable location. Investors and creditors demand detailed financial records during the course of a business expansion, selling your business, or moving your dental practice. 

Your outsourced bookkeeper will ensure all documents and records are always up-to-date, which will make securing funding much easier.

5)     Smoother Tax Season

Your dedicated bookkeeper will work closely with you to make sure all your tax liabilities are accounted for while also working to ensure you don’t pay anymore than necessary to the government. You will secure an impressive return on your investment with the money spent to hire a bookkeeper compared with the potentially sizable tax savings for your practice.

A bookkeeper will also prepare a very useful year-end financial statement. This statement will assist you in planning the next year for your small business and preparing for potential expansions based on your growth and forecast.

6)     Improve Work-Life Balance

Hiring a professional bookkeeper who specializes in servicing dental businesses frees up time and energy from your practice so you have more time to enjoy your long-delayed personal pursuits. You achieve a healthier work-life balance when your financial services are outsourced to a competent bookkeeper.

7)     All Payments Made on Time

You definitely do not want to accrue debt for your dental practice. This debt could result in big fines and interests.

Services involved in bookkeeping for dentists ensure that a professional bookkeeper will make all payments on time and in full. This consistent pattern will help keep your small business debt free. 

Contracting Out for a Bookkeeper Makes Sense for Your Dental Practice 

As you can see, there are multiple, tangible benefits to hiring bookkeeping for dentists. The money spent to hire a bookkeeper will bring substantial ROI in the form of cutting costs and realizing tax savings. 

Your bookkeeper will be charged with maintaining your practice finances with efficiency and accuracy. She will track revenue and monitor overhead.  This consistent method will help your dental business become more profitable. 

Drilldown Solution Can Help Your Small Business Accounting Needs 

Our accounting services are designed to reduce your administrative and bookkeeping burdens and provide you with valuable financial benchmarks for your business. This approach results in keeping you updated and informed. 

Our seasoned, highly skilled full-service accounting team at Drilldown Solution will remove your financial pain points with bookkeeping for dentists to make managing your money easier.

DrillDown Solution has the important tools you require to track expenses, oversee cash flow, and discover financial trends so you can effectively plan for the future of your business.  Our primary goal is to help dentists like you make and keep more money. 

We have the expert team to help any small business thrive, even under the current COVID-19 pandemic circumstances. We accomplish this result with a three-part system comprised of patient-experience excellence, financial focused operations, and accountability. 

Our goal at Drilldown Solution is to put your small business in the best financial position possible, utilizing proactive processes and personal care!

 

Heather Porter

DrillDown Solution was founded in 2004 and has helped thousands of people save on taxes and achieve their best financial position possible.

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