If dental practice owners want to avoid loss of revenue and IRS penalties, and gain powerful insights that will help them make informed financial decisions, they must invest in accurate dental accounting.
Encompassing the management of such tasks as tax returns, marketing costs, daily accounts receivable, creation and analysis of financial statements, and rent, utilities and mortgage, engaging with a specialist dental accounting firm can help you get the very best out of your dental practice.
What makes dental accounting so important for practices?
Nowadays, it takes more than the provision of high quality patient care to run a successful dental practice; you must also be able to manage its finances, take care of insurance payments, track expenses, and stay IRS-compliant at all times.
Through the expert organization, monitoring and analysis of your practice’s finances, dental accounting helps you keep your practice audit-ready, and able to provide your patients with even better care.
Here are some of the top factors that make dental accounting crucial for all modern practices:
1. Revenue tracking
With out-of-pocket payments, insurance reimbursements and co-pays to deal with, dental accounting keeps track of all payment sources to prevent any loss of revenue.
2. Management of expenses
From payroll and lab fees, to medical equipment and more, there are typically many different types of expenses dental practices must deal with in their day-to-day operations. Monitoring these meticulously and identifying any areas where expenses can be reduced, is the role of a dental accountant.
3. Claims and insurance handling
Delays and mistakes can be greatly reduced when insurance claims are handled professionally, and cashflow can remain streamlined.
4. Tax compliance
Dental accounting can keep your practice compliant with the tax rules and deductions specific to the dental industry.
5. Financial planning
Accurate financial reports are the backbone of any successful dental practice, and with a dental accountant onboard, you can gain access to these at any time, making decisions to hire, expand, or invest, a lot more informed and straightforward.
6. Dental industry-specific expertise
Unlike a regular accountant, dental accountants are well-versed in the myriad challenges uniquely faced by the dental industry, and can guide you expertly with the help of customized financial solutions.
7. Time saving
The time that you aren’t spent working on payroll, bookkeeping and tax planning and preparation, is time you can devote to your patients; the people who keep your practice ticking over.
8. IRS compliance
Helping you reduce the risk of IRS penalties and ensuring that you’re always audit-ready, an outsourced dental accounting service will make sure you’re compliant at all times.
9. Strategic tax planning
Their knowledge of which tax credits, deductions and write-offs are applicable, can help your practice reduce its tax liability and boost savings.
10. Real-time reporting
Most dental accountants nowadays use cloud-based tools and dashboards that give you an insight into your practice’s finances, in real-time, enabling you to make savvy decisions for the future of the business.
Although dental accounting can help you keep your practice’s books clean and organized, it’s about so much more than that. Dental accounting puts practice owners and managers in the very best position for managing EFT reconciliation and revenue cycles, for generating reports, and maintaining IRS-compliance, all of which will help the practice run smoothly in a manner that’s easy to sustain.
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