If you’re too busy seeing patients to keep up with your dental practice’s bookkeeping, don’t simply let this critical work go undone. Instead, team up with a bookkeeping service.
Detailed and organized books do more than simply track income and expenses—they safeguard crucial data and provide valuable insights into the state of your business.
Today, we’ll highlight a number of key benefits of professional bookkeeping services for dentists.
First, let’s take a moment to differentiate bookkeeping from accounting. These two terms are sometimes used interchangeably but they represent two distinct professions.
Bookkeeping Vs. Accounting
Bookkeeping is the recording of financial transactions.
Bookkeeping consists of detail-oriented tasks that keep track of a business’s financial records. This includes assigning credits and debits to accounts and recording journal entries that document the movements of funds.
Accounting, on the other hand, involves the generation of insights and analysis on the financial health of an organization. Accountants prepare financial statements, assess business risks, and make recommendations for improving financial performance.
Accounting activities are considered more sophisticated than bookkeeping tasks. Yet, accounting relies on bookkeeping. Bookkeeping errors or omissions can be costly, while well-maintained books are a major asset during financial decision-making.
The advantages of working with a great accountant are more widely lauded, but bookkeeping is just as essential, providing the foundation for many higher-level financial activities.
Here are the benefits enjoyed by dentists who work with a professional bookkeeping service.
Comprehensive Bookkeeping Services
Bookkeeping services for dentists may include administration and documentation tasks related to accounts receivable/payable, human resources and payroll, and insurance billing.
Bookkeeping services are highly customizable and can be tailored to the unique needs of any practice.
Detailed Tracking of Revenue and Expenses
Bookkeepers are skilled at financial data entry operations, including:
- Tracking income, expenses, and account balances
- Adding credits and debits to accounts
- Preparing tax documents
Keeping your revenue and expense books in proper order protects your practice from unpleasant surprises, such as overdrawn accounts or unintentional fraud.
Bookkeeping also helps you maintain an accurate, ongoing idea of your practice’s financial health. That way, you’re always ready to evaluate growth opportunities and business decisions from an informed standing.
Reduced Admin Workload for Dental Practice Staff
Bookkeeping represents a considerable administrative workload. For small practices, it’s difficult to devote sufficient training and staff time to ensure that books are properly maintained. For larger practices, the sheer volume of data complicates the prospect of in-house bookkeeping.
Many small business owners attempt to oversimplify important tasks related to financial planning and record-keeping. A survey by Clutch found that only 54% of small business owners even engage in the fundamental act of maintaining an official budget.
If there’s no time for you or your staff to keep up with the books, then you might be in need of some outside help.
Working with a bookkeeping service or an all-purpose advisory team helps dentists stay focused on patient care, knowing that their financial records are professionally maintained and monitored.
Real-Time Financial Insights and Comprehensive Reporting Options
Some dental practice owners have a general sense of their office’s financial health. Others know exactly where to access the precise data that clarifies revenue, expenses, account balances, and other key info. That’s the difference that great bookkeeping makes.
Bookkeeping provides real-time financial data that can easily be skimmed or mined for insights and decision-making support.
As a practice owner, how you receive and act on your bookkeeping data is up to you. Professional bookkeepers offer reporting options that are easily customized to your schedule, the desired level of detail, and preferred technology platforms.
Reduce the Risk of Errors and Unintentional Fraud
To protect a growing practice from costly financial errors, or even fraud, meticulous record-keeping is needed. Professional bookkeepers employ the proper tools and strategies to keep books current, accurate, and detailed.
Flexibly Scale Services Up or Down
Since bookkeeping consists of a set of distinct and easily-defined tasks, bookkeeping services are easily scaled up or down. According to your needs, receive flexible and affordable bookkeeping support when and how you need it.
Bookkeeping and Accounting Services for Your Dental Practice
At Duckett Ladd, we’re a team of CPAs working exclusively within the dental industry.
Our comprehensive and customizable accounting services include:
- Tax planning
- Financial statement preparation and reporting
We offer complete accounting solutions that enable dentists to stay focused on patient care while enjoying the successful practices they always dreamed of.
Contact Duckett Ladd today to learn more.