Owning a dental practice is a demanding position. In addition to seeing patients and managing your staff, you also have to keep track of your finances. While bookkeeping may not be your favorite task, it’s important to make sure that you’re doing it correctly. Otherwise, you could end up making mistakes that cost you money.
In this blog post, we’ll discuss three common dental bookkeeping mistakes and how to fix them.
Dental Bookkeeping Mistake #1: Not Tracking Your Income
One of the most important aspects of dental bookkeeping is tracking your income. Without accurate records of what you’ve earned, it’s impossible to make informed financial decisions for your practice. Yet, many dental practices fail to track their income properly, leading to all sorts of problems down the road.
If you’re not tracking your income, you could be making some serious mistakes that could have a negative impact on your practice. Here are just a few of the things that can go wrong if you’re not keeping accurate records of your dental practice’s income.
- You could miss out on tax deductions: Without accurate records of your income, you could miss out on important tax deductions that could save you money.
- You could make poor financial decisions. Without knowing how much money you’re bringing in, it’s difficult to make sound financial decisions for your practice.
Dental Bookkeeping Mistake #2: Failure to Track Expenses
One of the most important aspects of running a successful dental practice is keeping track of your expenses. This can be a difficult task, as there are many different items that you need to keep track of. However, it is essential to track your expenses in order to maintain a healthy financial situation for your practice.
One of the biggest mistakes that dental practices make is not tracking their expenses. This can lead to major financial problems down the road. Tracking expenses can be done in a variety of ways, but consistency is the key to success.
You can use a simple spreadsheet to track your expenses, or you can use more sophisticated financial software. Whichever method you choose, make sure that you track all of your expenses on a regular basis. If you are not tracking your expenses, you are putting your dental practice at risk.
3rd Dental Bookkeeping Mistake: Failing to Keep Up with Accounts Receivable
One of the most important aspects of dental bookkeeping is staying on top of your accounts receivable. This refers to the money that is owed to you by your patients. When patients don’t pay their bills on time, it can put a strain on your cash flow and make it difficult to keep up with your own bills.
One way to stay on top of your accounts receivable is to use a software system that can track payments and send reminders to patients who are behind on their payments. There are a number of different software systems available, so be sure to do your research to find one that will work well for your dental practice.
Another way to stay on top of your accounts receivable is to hire a bookkeeper or accountant to handle this aspect of your business. This can be a good option if you don’t have the time or resources.
If you’re reading this, chances are you’re making at least one of these three dental bookkeeping mistakes. But don’t worry, we can help! Our dental accounting office offers a wide range of services to help you get your bookkeeping in order. We’ll work with you to find a solution that fits your needs. So, please contact our dental accounting firm to schedule a consultation. Our dental accountants look forward to hearing from you!