3 Dental Bookkeeping Mistakes You’re Probably Making (And How to Fix Them) | Academy of Dental CPAs

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!

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Using Feedback to Improve Workplace Performance | ADCPA

We exchange feedback almost continuously from the leadership team as well as from the team members. Leading is as much about listening as it is about speaking. Although feedback is one of the most important aspects of performance improvement, it can also be one of the most challenging aspects of the process. People generally do not like to look at themselves critically. Throughout the following sections, we will illustrate some of the most effective methods for not only receiving constructive feedback but also handling it in such a way as to ensure its maximum effectiveness.

Ask for what you need:

People tend to assume that when something goes wrong, they will be informed and corrected as soon as possible. In an ideal world, this would be wonderful, but unfortunately, it isn’t the case when we look at what is happening in reality. By asking for feedback directly, you give your employees and your leaders the chance to provide you with valuable insights into what they think of your practice. You may miss out on mistakes that have been made or innovations that have improved processes or operations if you don’t ask.

Even if your feedback is not received formally, it can help strengthen your systems and enhance your performance. Do not hesitate to request feedback whenever possible.

Rather than reacting, listen and digest.

We can find it difficult not to feel personally attacked when we receive feedback, especially when it is critical. In situations like this, the worst thing you can do is react without considering the perspective of the other party. Listen to what they have to say and consider the reasons behind their feelings.

To understand the other person’s perspective, keep a clear head and ask clarifying questions. Positive and helpful feedback may be misinterpreted and turned into a destructive situation. Consider asking for additional time to digest your feedback if necessary. There is no harm in returning to discuss your feedback in greater detail and from a different perspective. If you allow yourself the necessary space and time, you will be in a position to deal with feedback more constructively and gain a better understanding of your leadership style and practice.

Providing Feedback Through Reflection:

Having a conversation with your team members is not the only way to receive valuable feedback. The successes and failures you have experienced can also provide you with valuable insight into your strengths and weaknesses. Are you prone to experiencing the same failure repeatedly? It may be necessary to determine the root cause of the problem and formulate a plan to prevent it from occurring again in the future.

The ability to hear criticism, whether constructive or not, can be difficult. It is, however, true that, at the end of the day, that brief period of difficulty will pay off for you and your practice in the long run. Our accounting team might be able to provide you with non-biased, constructive feedback from an outside perspective that may help you to grow your practice. Having the ability to analyze your strengths and areas for improvement is a great way to help you grow your practice. Contact our dental accounting office today to schedule a consultation.

What Makes a Real Dental CPA Better than Accounting Software | Best Dental CPA

In the years to come, as humanity expands further into the digital age, the number of accounting software providers who promise to offer everything your business requires will certainly grow. The truth is that, despite what these claims may suggest, a real dental accountant is still superior to software for your practice. 

The majority of people believe that accountants are experts in basic math, but that isn’t the case. To save ourselves the time of having to analyze and interpret the results, we let the computers do the majority of the math for us.

Although computers are capable of balancing your numbers, they cannot determine whether those numbers are accurate or what their implications are for the financial future of your organization. By contrast, a dental accountant can analyze the financial health of your practice by comparing your numbers to those of successful practices, tracking your progress over time, and determining the appropriate overhead costs for your practice.

A dental CPA is also available to assist you with determining what goals you wish to accomplish and what decisions you need to make to accomplish them. One of the weaknesses of software programs, not recognized by many, is that they can only tell you when something is wrong. Most of the time, they are unable to determine what the problem is and they are unable to provide a solution that is unique to your situation.

Because dental accounting professionals have vast experience in everything related to dentistry, they know what financial strategies will work and which will not. Their services do not end with just doing the math; we also provide support during financial emergencies as well as when you simply wish to learn how you can manage your money more effectively. 

While there is no denying the fact that these software tools can be very useful when they are used correctly, their value is often only as great as the person who uses them. Individuals who are inexperienced when it comes to managing their finances on their own may make costly mistakes they could have avoided with the support of a professional.

A dental accountant will be able to assist you at whatever stage you are at in your dental career. Your business and your career will thrive with our team of dental CPAs. The services we provide range from tax preparation and minimization to business management, start-up services, retirement planning, and yes, even bookkeeping. To arrange a consultation with one of our dental accounting professionals, please contact us today.

Accounting Problems – How A Creative Mind Can Solve Them | ADCPA Dental Accountant

Al Capone, a notorious crime boss and mobster, committed countless crimes either directly or through his organization. Ultimately, it was not his gangster reputation that led to his arrest and sentencing. Instead, Capone was charged with income tax evasion. It took a team of accountants to bring down a man who had been the crime boss of Chicago for seven years.

The story has little to do with dentistry, but it is an example of how important accountants are to every industry. When you hire a dental accountant, you can be confident that they are professionals who have dedicated their lives to dentistry. Dental accountants are more than just tax preparers; they are specially trained to understand dental businesses and offer solutions that others may not consider. The following are a few ways that dental accountants can assist in the success of your practice.

Understanding Dentistry:

The services of an accountant of any type will be beneficial to your practice, but a dental CPA understands the ins and outs of dentistry and can utilize this knowledge to your advantage. Dental accountants are uniquely qualified to assist you since they comprehend the broader context of dentistry and can approach a problem from multiple perspectives. Since they fully understand your business, they can recommend a solution that will be ideal for you and which you can feel confident about.

Looking At The Big Picture:

Traditionally, accountants have been analytical thinkers. To solve a financial issue in your practice, you may need a new perspective that takes into account all the consequences. Dental accountants are capable of thinking laterally, which is one of the main reasons why they can greatly contribute to your practice’s success.

Creative Thinking:

Difficult problems require creative solutions. Even though accountants aren’t known for their creativity, you may be surprised to learn that their line of work actually requires quite a bit more creativity than might be expected. A dental accountant combines their dental knowledge and experience with a unique approach in order to create innovative solutions that help your practice meet and exceed its financial goals. 

Having the right accountant can make the difference between success and failure in your practice. Although it is best to consult an accountant before problems arise, we are always available to help you. For assistance with your financial goals and a highly specialized approach, please contact out dental accountant of professional dental CPAs.

Accountants Should Have These 5 Qualities | Dental Accountant

The most effective way to evaluate your practice’s performance is to hire a professional dental accountant. As a dentist, we realize that you have a lot on your plate, and accounting may be the last thing on your mind. However, not all accountants are the same, so you should know what you’re looking for before you hire one. Here are five characteristics to look for before you hire an accountant.

Awareness

Even though it may seem like a no-brainer, your accountant should be an expert in dental bookkeeping and accounting. Make sure dentists are aware of the best options for financial support and stay on top of practice-related financial details and information.

Well organized

If you’ve ever attempted to do your own accounting, you know how quickly it can get complicated. An experienced accountant will know how to resolve issues and maintain accurate records. As well as allowing you to achieve your goals more quickly, it will also guarantee your company is both compliant and efficient.

Trustworthy

The most important factor when choosing an accountant is trustworthiness. Do not hire an accountant blindly without proper research. Often, you entrust them with your practice, your finances, and even your life. It’s all about your reputation. Before you sign anything, take the time to become familiar with the company and accountant. Ask for references from other professionals.

Reputable

The devil lies in the details, and a single mistake could cost you your practice and your reputation. Examine how your accountant will avoid mistakes and keep you informed about your finances. In your role as a doctor, you spend a lot of time getting to know your patients. An accountant should perform the same service for your practice, recognizing the significance of accuracy. 

Committed

The top dental accountants place great importance on customer service. If you want your practice to be successful, then you should expect them to go the extra mile to ensure that this happens. It is for this reason that we respect and dedicate ourselves to every client we work with. As a client, you should feel confident and comfortable as your accountant performs all work on your behalf.

You have devoted all of your energy and effort to establishing a reputable dental practice. We are here to assist you. Contact ADCPA today to arrange a consultation with one of our dental accounting professionals. Let’s work together to help you achieve your financial goals.

ADCPA | 4 Money-Saving Tips to Keep Your Dental Practice in the Black

Running a profitable dental practice requires a significant investment of both time and money. Regardless of the size or age of your office, you have ongoing overhead and expenses related to things like:

  • Instruments, tools, and equipment 
  • Marketing
  • Office rent or mortgage
  • Utilities 
  • Staffing and payroll
  • Insurance
  • Technology and software
  • Building or equipment maintenance

With so much to keep up with, you might be wondering if there are tangible ways you can actually save money while continuing to help your practice grow. Here are some proven accounting tips that can get your dental practice headed in the right direction:

  1. Select the right software: Choosing accounting software customized for your practice can help you accurately assess and track your expenses and revenue. While there are several “good” programs out there, you might not be getting all of their intended benefits unless you’re using a system designed specifically for your field of business. 
  1. If possible, automate patient interactions: Web-based portals allow patients to interact with your office online, 24/7. Utilizing such technology can save you and your staff significant amounts of time when it comes to appointment scheduling, answering the phone, accepting payments, or addressing simple billing questions. Once perceived as impersonal, online portals are increasingly becoming a preferred service by most patients because of their convenience.
  1. Track your marketing efforts: Marketing your practice is essential for attracting and converting prospective new patients. The question is, are you analyzing your efforts to ensure that you’re getting the best return on your investment? If you aren’t sure what your ROI is, it will be impossible to know if your marketing budget is being invested wisely or simply wasted altogether.  
  1. Hire a professional so that you can focus on what you do best: Investing in a professional dental accountant may feel counterintuitive if your goal is to cut overall costs, but in many cases, hiring a financial advisor can help you find, make, and keep more of your hard-earned money.

The accounting needs of a dental practice are detailed and complex. While there are reliable do-it-yourself programs designed to make small business accounting easy, there are additional benefits that come with hiring an accountant who specializes in dental practice operations. Contact us today to learn more about how our small-business accounting services can help your practice thrive.

ADCPA | Does Your Practice Really Need an Accountant?

In many ways, we rely on the internet to solve our problems and answer all of the questions we ever have, instantly. The internet is such a useful tool, that more doctors are beginning to turn to it for their accounting needs, making it seem as if an accountant really isn’t all that necessary.

But while the internet can be an extremely useful place, don’t be fooled. The internet can’t solve everything and your practice really does still need an accountant.

Our accounting team doesn’t just crunch the numbers. We have years of experience and education that allows us to explain your financial statements. In turn, we help you understand those statements in order to truly grasp the ins and outs of your business. These insights can include useful information on cash flow and any recognizable patterns, how your inventory is being managed, whether the pricing of your services is reasonable, and even your business financing. 

From those insights, we can help you analyze which areas are ready for growth, what changes need to be made and how you can create a plan for continued success. In short, an accountant gives you the resources and guidance you need to make better, more informed decisions for your practice. The internet might be able to help you in some ways, but it can’t provide the level of depth and personalized understanding of individual situations that we can.

Accountants are also great for all the roles they are usually associated with. We can provide expert advice and oversight on aspects of your practice finances, such as payroll and estimated tax payments.

We work efficiently, avoiding costly errors that someone with less experience could make and we make sure that everything is completed fully and on time to help protect you from audits.

Hopefully, we’ve convinced you of the benefits an accountant can have for your practice. If so, get in touch with our team and have a conversation about how we can best serve your practice and financial goals.

ADCPA | Bookkeeping Basics to Help Your Practice Thrive

As a small business owner, you likely wear a lot of hats. When it comes to managing your office finances, you’ve likely realized that there are many tasks that demand more time and attention than you have to offer. While there are reliable software packages designed to streamline do-it-yourself small business accounting, there are also numerous benefits associated with hiring an accountant trained in your practice field. For example, a skilled accountant:

Understands your industry. Specialized accounting professionals will stay abreast of trends that impact your profitability and bottom line. That means they can offer you practice-specific tax advice to make sure you maximize your annual tax savings. They are also knowledgeable about new tax laws so you stay compliant in your ever-evolving field.

Can offer advice on equipment purchases. Investing in the latest technology and equipment is an important part of keeping your practice on the leading edge. A specialized accountant can advise you on the financial benefits and liabilities associated with these types of investments, so you can make informed choices that save you money in the long run.

Is trained to help you see the big picture. Industry-specific accounting professionals can provide useful comparisons that benchmark your practice against other similar ones. This kind of insight can help you make informed choices when it comes to hiring, adding products and services, or expansion decisions that require a financial investment.

Can assist with retirement planning. If you are self-employed (and many dental practitioners are), responsibility for retirement planning is solely up to you. A good CPA can advise you on the right types of plans for your situation and help you strategize on your long-term financial goals.

Is connected with other industry professionals. Perhaps you want to purchase a larger facility or add a partner to your practice. A specialized accounting firm can connect you with banking professionals or loan officers who understand the nuances of your field, and also advise on business structure best practices when it comes to creating a partnership agreement.

Accounting for a dental practice encompasses so much more than simply preparing an annual tax return. A skilled small-business accountant can offer sound business advice, help analyze the financial health of your practice, provide long-range financial planning, and guide you toward business decisions that keep you in the black. To learn more about how our small-business accounting services can help your dental practice thrive, contact us today for more information.

ADCPA | Common Characteristics of High Performing Teams

Teamwork makes the dream work, or so the saying goes. With a team of rockstars behind you, your practice can truly soar into the success that you envisioned when you first started your own business. However, creating that amazing team can be more difficult than you may have thought. Even if you have the right people, there may be something that is holding them back from reaching their full potential. Look at this list of common characteristics of high performing teams. Which ones are your team performing well on? Which do they lack? By comparing this list to your own, it may just give you the insight you need to reach the next step.

No Individual Member is More Important than the Team:

In any business, there are going to be some members of the team that are in positions of power. However, this should not make them more or less important than any other member on the team. When your team knows that they are all equals working to accomplish the same goal of success for your practice, it can help create a team that relies on the necessary people to get the job accomplished.

Each Person Carries Their Own Weight:

It’s important for every team member to be performing optimally in their own role. When one person is falling behind, the rest of your team can struggle to pick up the slack while maintaining their own work. Ultimately, what this characteristic boils down to is mutual respect. If you have a team that respects each other, they’ll be working to ensure everyone has what they need in order to do their job as best they can. Without that respect, it’s likely that people will be performing the bare minimum in their role.

Trust:

As important as mutual respect is the level of trust your employees have in each other. When you have a team that trusts one another, it allows for strong cohesion, conflict management and natural agreement when issues arise. Cohesion built upon trust means that every member of your staff is working towards the same goals, knows how to work together, and can make the right judgement calls when problems arise.

Understanding Limitations:

Some of the best teams know when it’s time to ask for outside help. Whether it’s a task that your team may not have the experience or knowledge to fully complete, or the workload seems to be simply more than they can handle, outside assistance or perspectives are nothing to be ashamed about and can help your team succeed at a higher level.

If you and your team require help with tax prep, retirement planning, or any accounting related service, we are here for you. Contact us today and let us know how we can help. 

Dental CPA | The Power of Feedback in Improving Workplace Performance

The exchange of feedback between leaders and their teams is an almost non-stop process. Official, or not, good leaders are as willing to listen to feedback as they are giving it out. Feedback is one of the most important aspects of improving performance, and yet it can be one of the most difficult things to hear. Very few people enjoy viewing themselves in a critical light. Below, we’ll outline some of the best ways to not only get constructive feedback, but also how to handle feedback for optimal benefit when it comes.

Don’t Be Afraid to Ask For It:

People will often assume that if something is wrong, they’ll be told and corrected. While in a perfect world, this may be the case, it is unfortunately not the reality. When you directly ask for feedback, you give your employees and your leaders the opportunity to give you valuable insights into the operations of your practice. Without asking, you may be missing out on mistakes being made, or innovations that have changed operations for the better.

Even if the feedback is not received in an official setting (such as an “on the fly” direction) it can give you the ability to bolster your systems and improve your practice. Make sure you ask for that chance as frequently as possible.

Don’t just React – Listen and Digest:

When feedback comes to us, it can sometimes be difficult to not feel personally attacked – especially if the feedback is critical. The worst thing you can do in this type of situation, would be to react without really considering what the other person is saying. Make sure you hear what them out and think about why they feel the way they do.

Do your best to stay clear headed and ask clarifying questions to help you fully understand the other person’s view point. Sometimes, the most positive and helpful feedback can be misinterpreted and turned into a destructive situation. If you need to take the time to digest, think about asking for time to do so. It never hurts to come back and be able to discuss feedback in more detail and from a different perspective. Taking whatever space and time you need will ultimately help you deal with feedback in a more constructive way and help you to understand your practice and your leadership style better.

Reflection is a Form of Feedback:

A conversation with a manager or employee is not the only way to get feedback. You can also learn a lot about your strengths and potential limitations by reviewing the successes and failures you have had in your position. Is the same failure happening over and over again? It may be time to figure out the root cause of the issue and create a plan to make sure it doesn’t happen again.

Criticism, constructive or not, can be difficult to hear. Ultimately however, that brief time of difficulty will turn in to large dividends for both you, your team, and the practice as a whole. If you’re looking for constructive feedback from an outside perspective that can help your practice grow, contact our team. We’ll be able to analyze your strengths and areas for improvement in order to help you bring your practice to the next level.