Every successful business should have their finances in check. If you own a dental practice, you will want to make sure that your accounting techniques are accurate. The main reason for this is because you need to be prepared for when the tax year end comes around. You don’t want to have to rummage through tons of paperwork just to find one transaction.
Properly organised finances will also mean an easier time for your staff and patients to find and process transactions. Your practice will be a lot more successful with some form of bookkeeping. For that reason, let’s go over a few accounting tips for your dental practice.
Know How to Save Money
Keeping your expenses low can be vital to the success of your practice. Of course, dental practices need to buy expensive equipment in order to operate properly, but there are other ways to reduce costs. Medical equipment is a must. Therefore, practices should focus on other expenditures that can be cut down.
Hiring a bookkeeper to manage your spending and organise all your transactions will definitely cut a lot of costs from your company spending. An experienced bookkeeper will be able to catch any financial losses, prevent any calculation mistakes or embezzlement, and take care of tedious taxes. They will make your life a lot easier. Your bookkeeper will also monitor your account at all times to ensure that there are no errors that could cost you quite a bit later on.
You will want to be knowledgeable about important financial terms. It’s important to know that your profit is the cash that your practice has after expenses, and your cash flow is the money that goes in and out of your business. Knowing at least the basic terms and having an understanding of accounting in order to speak to your bookkeeper will certainly pay-off. After all, they will be the ones who have to report to you. What good will that do if you don’t know what they are trying to say?
Use Accounting Software
Your practice should be taking advantage of all the convenient software available out there, especially as Making Tax Digital is just around the corner. There are a lot of systems that will be able to assist you in managing your financial accounts, recording your transactions, and carrying out other financial duties. Using software will allow your bookkeeper to record, organise, and input your expenses more accurately. Accounting software will reduce the likelihood of errors, increase efficiency, and allow your bookkeeper to do their job more easily. Most of The Peloton’s Dental clients use Xero, and as we are Xero Gold Partners, you can rest assured that we know what we’re talking about.
Determine Whether to Hire In-House or Outsource
While having an in-house bookkeeper might sound easier, with outsourcing, you can pay for the services you use. Outsourcing will also save you money on many other costs that only come with hiring staff. Not to mention that it will reduce the time that it takes to find, interview, and select worthy candidates.
The Peloton provides accounting & bookkeeping services for Dentists across the UK.
Get in touch today to see how we can help.