3 Accounting Tips for Dentists and Dental Practices in CA

You might miss cost inefficiencies (are you paying too much for utilities?), you may miscalculate your tax liabilities and end up spending frustrating hours unravelling any issues. In addition to our Sacramento accounting services, we also work with dentists throughout the Roseville, CA area. The user accepts the information as is and assumes all responsibility for the use of such information. Our consultation fee is $250 for 40 minutes with a Partner or an experienced Tax Manager. If we decide to press forward with a Business Advisory or Tax Patrol Services engagement, we will credit the consultation fee towards those services.

Xero is a cloud-based platform, which can be accessed securely from any location with an internet connection. All your financial information – including historical data – will be at your fingertips and easier to share, available to view instantly without taking up any office space. It’s a modern way of working that will allow you to do things even better. “Profit” is the surplus that remains after your expenses have been subtracted from your practice’s revenue. By comparison, “cash flow” refers to money coming both into and out of your practice. Even if your practice is profitable, having inadequate cash flow can lead to an inability to cover your operating expenses – which, for dentists, are high.

Bookkeeping For Dentists

You run the risk of omitting important information without the use of a dentistry-specific chart of accounts. This might affect you further down the line when you transfer those figures to other financial reports. All businesses need to know how they make money and where the money is spent.

Very often dentists give lesser importance to the bookkeeping and accounting which later becomes a reason for financial irregularities. It is very important that the dentists have a proper dental CPA to handle all the accounting and other related activities efficiently. A proper dental bookkeeping is one of the foremost aspects for the dentist to ensure that all the financial transactions are recorded as proper places in accounting books.

Accounting and Bookkeeping Services for Dentists

Knowing where your money originates from can assist you in evaluating the success of your dental practice. It is prudent to reconcile your accounts as frequently as possible, but, at the very least, your practice should do so monthly. As mentioned earlier, the main purpose of bookkeeping is to reconcile financial information and make informed decisions based on those results.

• Accounting software is a compliment to automated practices that use dental practice-management software.
• Conversely, your accounts receivable, cash on hand, and inventory are all grouped together as assets.
• To answer those questions we need solid bookkeeping to springboard into the “what does it all mean?
• Without closing your books properly, it could result in mistakes and inaccurate depictions of how much profit or loss was experienced within one accounting period.
• As Sona can attest, I had things placed in incorrect categories, was several months behind in balancing my statements, and just really had no idea of my profitability.

Rather than consider it a matter of your bottom line, consider your bottom line to be the dental health of your patients. A shuttered office can’t fill a cavity, set a crown, or perform a root canal. Consider the state of your books to be just as important as the state of your probing. Blunt instruments lead to bad dental health outcomes, and so do unkempt books.

Dental bookkeeping basics

I’ve been using Percentology since 2016 and absolutely love working with them. Prior to working with them I did all of our bookkeeping myself. Having a dedicated expert do it for us has saved me a tremendous amount of time. As a result I’ve had much more time to help patients, which has increased revenue.

Successful businesses know exactly where it goes and to whom for cost-effective evaluations. I recommend two different versions – QuickBooks Basic and QuickBooks dental bookkeeping Pro. QuickBooks Premier is for advanced users, such as your accountant, and QuickBooks Healthcare Edition is no longer available for retail purchase.

We have the expert team to help any dental business thrive, even under the current COVID-19 pandemic circumstances. We accomplish this result with a three-part system comprised of patient-experience excellence, financial focused operations, and accountability. Of course, medical and dental practices have unique needs compared to other types of businesses. Each country and jurisdiction will have its own regulations for licensing, regulation and taxation. This means you’ll need to study up on your local guidelines when advising your medical and dental clients.

• We have a team of experts committed to updating your data with complete accuracy and excellence.
• I have six dental offices, and Sona Wegner’s team does my bookkeeping for all the offices since 2014.
• Discuss and choose an accounting software program that your team can efficiently and comfortably use.
• You can get so much more from your bookkeeping than just a tax return.
• To keep the process clear, we have finance professionals on the team who generate monthly reports showing each collection and expense made into and out of your account.
• Luckily in bookkeeping, this isn’t the case because choosing an accounting software is pretty straightforward.

Accounts Junction is a well-known accounting services providing agency across the globe. Accounting is more specialized, and picks up where bookkeeping leaves off. Accountants interpret, classify, analyze and summarize the financial data. They typically have more advisory positions and offer advice to business owners. Absolutely – but they also can provide a higher level of guidance to dentists as well.