AuthorBy Sam Andrews
Animator / Designer / Dancer
7 Helpful Tips for Dental Bookkeeping
By outsourcing your bookkeeping, you’re giving yourself the ability to do what you do best– improving peoples’ smiles. There are several reasons why dentists and oral surgeons decide to outsource their bookkeeping to a dental accountant instead of keeping it in-house. You might be running a larger dental practice, or the job is just too much to hand off to an office manager. Accounting services commonly provided include tax prep and consultation, expense as well as revenue tracking, and much more. Accounting is concerned with maintaining accurate financial records and efficient recordkeeping practices. Outsourced bookkeeping for dental practices ensures that you can spend your time and energy on improving your practice.
You also get an active community of support and continuous learning. Doing it yourself or hiring an in-house inexperienced bookkeeper can result in costly mistakes. A common and costly mistake is to accidentally enter transactions from a previous period, which results in balance adjustments that don’t match the bank balance or financial reports. If this error goes unnoticed, all future reports, tax documents, and cash figures will be incorrect.
Dental Accounting and Bookkeeping Services
After all, if you wanted to spend your workweek sorting through balance sheets and payroll reports, you would have gone into accounting, not dentistry. However, while accounting is likely among the least exciting aspects of running your dental practice, it is also among the most important. This is particularly true if your practice is still in its nascent stages, when early business planning decisions can chart a course toward long-term success – or an early economic demise. Fortunately, following some simple accounting tips will bolster the odds that your practice will flourish. Though industry figures vary by year, most statistics indicate that there are more dentists practicing in California than virtually any other state in the country. It is essential to work with a skilled accountant who develops high-level strategies aimed at improving your practice’s financial standing.
The truth is – the dental industry is entirely difficult from the common businesses, and it definitely requires a different treatment. If your dental practice is growing and there’s an unstoppable flow of books and accounts every month, the best option to tackle them is acquiring a dental practice management system. There are multiple such systems available in the market offering great features and assistance. You can easily integrate one of these into your dental office setup, learn to use them effectively, and be able to manage hundreds of books and accounts effectively. You need to see if your taxes are being rightly paid, your books are properly being closed, and you have an adequate insight into your financial standing to empower future growth.
You will be starting with our onboarding accountant, and she will walk you each step of the way.
A Generalist doesn’t understand the profit levers of a dental practice like we do. Overall, dental bookkeeping requires attention to detail and base knowledge of bookkeeping guidelines. You’ll need to use an industry-specific chart of accounts, reconcile financial data and make sure that the books are properly closed each month. No, it is not; we offer dental accounting and bookkeeping services on a month-to-month basis only. It enables you and your team to easily access all of your dental practice accounting and bookkeeping data online, 24 hours a day, seven days a week.
What is bookkeeping in a dental office?
Dental practice bookkeeping and accounting.
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.
Tag any transaction in ZipBooks with a customer, vendor, project, location, or other custom tag — and generate an income statement and other reports based on one or more of your tags. Organize your work into projects and tasks, and track your time right in ZipBooks. Once you’re ready to bill, pull that time into an invoice with a single click.
Below are some vidoes that may interest dental practice owners. Signing up for Gusto with this link will automatically connect your Gusto business account to our Gusto team account. Support from the most experienced and educated dental bookkeepers. But when they decide to open their own practices, they take on the role of the business owner too. The responsibilities of working in their profession while effectively operating a business are incredibly challenging. We continue to grow and advance our services to meet your needs.
- Without closing your books properly, it could result in mistakes and inaccurate depictions of how much profit or loss was experienced within one accounting period.
- It also helps you reconcile each different account the right way.
- Whether you’re looking to improve accuracy, efficiency, or are simply troubleshooting a specific problem, these dental bookkeeping basics can point you in the right direction.
- You also won’t have to worry about sick days or vacation days—outsourced bookkeeping firms are there to handle your books every single day.
We provide you with regular financial statements, but we also give you the tools to understand what those numbers mean in the simplest terms. Time currently spent on bookkeeping can be applied to bettering your dental practice. Most dentists find when they are solely in charge of bookkeeping, they cannot focus on their practice as much as they would like. Just like brushing and flossing keep your mouth healthy, practicing good bookkeeping techniques will help your dental practice thrive. Use this information to compose a profit and loss summary which can then be incorporated in your monthly financial report. The primary purpose of bookkeeping is to reconcile financial information and make informed decisions based on those results.
Free accounting software for dental practices
We have a professionally trained support team on board that are available 24 hours a day, 7 days a week to answer your inquiries and address dental bookkeeping your issues. A CPA is required if you are an expert with taxable income. The difficult part is finding the best candidates for the job.