<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=351166518341071&amp;ev=PageView&amp;noscript=1">

3 Accounting End-of-Year Checkups for Your Dental Practice

Nov 15, 2016 9:08:15 AM / by Brian Paulson posted in dental offices

How healthy is your dental practice?

Just as you advise patients to schedule regular checkups to maintain a healthy smile, you should also schedule financial checkups for your business, especially during end-of-year preparations and plannings. Run through this easy checklist with your accountant to find out where your business is heading.

dental-accounting-checkup.jpg

Dentail Practice Accounting Checklist

1. Annual Budget

Did you set an annual budget for the current year? If so, have you been referencing it on a regular basis, or has it sat untouched since its creation?

What’s the use of an annual budget if you haven’t used it as a benchmark throughout the year? Make an effort to reference the data to determine the health of your practice. Yes, your budget may fluctuate from time to time, but if you don’t have an initial plan, you may be flying by the seat of your pants. That’s no way to run a business.

To properly gauge profitability and potential growth, collect your financial reports from last year and the current year, and sit down with your accountant to project an annual budget for the upcoming year. The data can help determine trends and indicate areas that need attention moving forward.

2. Fee Schedules

When was the last time your fee schedules were updated? If you can’t remember, it’s probably a good sign that you need to evaluate your fees. Even slight changes to routine procedures can result in significant changes to your bottom line. Strive for strong financial policies with clearly understood and accepted treatment plans to streamline the process.

3. Collections Policy

Dental practices are not lending institutions. Are your collections reasonable, or are you finding a significant number of patients paying past due bills?

Even highly successful dental practices can become complacent with collections. Work with your accountant to create an efficient collections policy, and adhere to the policy regardless of cash flow fluctuations.

Bonus Tip:

Don’t wait until after the holidays to collect and prepare documents for tax preparation, and use your accountant as a sounding board to maximize deductions before the end of the year. Performing all of these accounting checkups will help you close the books and prepare for a successful new year.

MEET WITH AN ADVISOR

 

Brian Paulson

Written by Brian Paulson

Brian began working at CSI in 1996, and he purchased the business in 2002. As Owner, his primary role is in the management and growth of the firm. Since 2002, the firm has more than quadrupled in size. In 2009, Brian started CSI’s payroll service to complement CSI’s accounting and tax services. Brian received his Bachelor’s degree from the University of North Dakota, with a double major in Accounting and Financial Management. He’s a member of both the National Society for Tax Professionals and the National Society for Accountants, and he serves on the board of directors for the Professional Association of Small Business Accountants, where he was once president. Brian also serves on the business advisory council for Opportunity Partners, an organization that helps people with disabilities find employment. He’s also contributed to several business books, including Six Steps to Small Business Success and The Lean Mean Business Machine. Fun Fact: To help put himself through college, he used student loans, delivered pizzas, and worked summers in a salmon processing plant in Alaska.

Comments

WE MAKE YOUR ACCOUNTING AND PAYROLL EASY, 
SO YOU CAN FOCUS ON GROWING YOUR BUSINESS

MEET WITH AN ADVISOR