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It is beneficial to have a CPA or virtual CFO who will look at your P&L statement with you, talk through your net income and help with cash flow, if needed. Even though you reconcile your deposits every week, when it comes to the end of the month you dental bookkeeping want to reconcile all bank accounts and credit card accounts. There may be some minor differences with timing of deposits or when charges were processed on the credit card, but overall they should match, and include everything with no duplication.
What is dental bookkeeping?
Bookkeeping is the practice of recording financial transactions. Credits (income coming in) and debits (money going out) are recorded in a general ledger. By recording the transactions, dental practice owners can track where their money is going and how much they earn.
Outsourcing of bookkeeping and accounting tasks can be very beneficial for the dental clinic. Alternatively, dentists can switch to a fee-for-service approach, which involves setting your prices for services and collecting payment in full from patients upfront. You or the patient can still submit a claim to their insurer for reimbursement if there is one. Dentists accept the lower prices insurance companies set for their services in exchange for the consistency of capitation payments and increased patient volume due to insurance referrals. Here are some best practices you should follow to minimize the interference of your dental accounting responsibilities in your day-to-day working life.
Expenses
These two terms are sometimes used interchangeably but they represent two distinct professions. Let us do the same for you – with high-quality accounting and bookkeeping guaranteed to ease your burden and make you smile. Buyer-Rep/Dental Practice Consultant Your Buyer-Rep helps you learn the process of buying a practice and fields initial purchase or start-up opportunities.
As Jason often says, he can mow his own lawn and change his own oil, but he’d rather pay someone else to do it. Bookkeeping is a chore – some might actually enjoy it, but others might view it as something they’d rather hand off. However, if dental accounting is viewed as a chore by dentists, it happens to be WCG’s chosen profession. DrillDown Solution helps dentists and small business owners reach the best financial position possible.
Flexibly Scale Services Up or Down
First, dental practices can go with the traditional route of being a participating provider. That means you’re in-network with a dental benefit plan and usually involves collecting payments from insurance companies and patients. In addition to reconciling transactions daily, it’s best practice to review and settle all bank accounts monthly. This step is especially important if you’re tracking electronic funds transfers, sending payments or waiting for incoming transactions (like insurance payments).
It allows practices to track their income, expenses, and profits, and make informed decisions about their financial health. By properly managing their bookkeeping, dental practices can ensure their financial stability and compliance with tax laws. Dentists, like any other business owner, have to worry about the financial aspect of their practice. This includes keeping track of their income and expenses, preparing and filing taxes, and making sure they are operating in a financially healthy manner. While some dentists may be able to handle these tasks on their own, it is often beneficial to work with a dental specialized CPA and accounting firm. Nowadays, all dental professionals should connect their business bank accounts and credit cards to solutions that can track their transactions and generate financial statements.