As a dental practice owner, it’s helpful to have some financial savvy and basic accounting and bookkeeping skills. However, as your practice grows and your books become more complex, it becomes less likely that you can manage all of your financial operations in-house.
For most dentists, outsourcing accounting services is a sensible and cost-effective choice.
Accounting is connected to every aspect of your practice’s financial well-being. This includes critical operations like tracking income and expenses, financial planning, tax filing, and payroll services. It makes sense to bring in some expert assistance to help handle these important and specialized operations.
In the sections below, we’ll make the case for outsourced accounting and offer tips for finding the right accounting group for your dental practice.
The Challenges of In-House Accounting for Dentists
Accounting is complex and time-consuming. Tasks like bookkeeping and tax planning can easily consume more than their fair share of a busy dentist’s bandwidth. Plus, the stakes are always high when your practice’s money is involved. Accounting errors can be costly, resulting in expensive headaches like missed payments to creditors or tax filing mistakes.
Dental accounting involves tracking a practice’s financial operations, preparing financial statements, and filing compliant and optimized tax returns. Accountants may also handle or assist with budgeting, financial planning, and other money matters.
While it’s important to have a professional accountant working on these tasks, it’s usually not practical for a dentist to hire an in-house accountant. Rather, it’s typically easier and more cost-efficient to outsource the work to an accounting firm. You’ll receive expert accounting services when and how you need them without taking on expenses like hiring, training, salary, and benefits.
Advantages of Outsourcing Accounting Services
Outsourcing accounting tasks is a time saver for busy dentists.
Accountants are organized, detail-oriented, and equipped with the right tools and skills for efficiently sifting through your financial data. Your accountant will tend to your financials and review the results with you, but you won’t have to pore over every detail. Rather, you’ll be free to focus on your core duties—providing great care and running a winning practice.
You need professional accounting services, but you probably don’t need them on a daily basis.
Rather than hiring an in-house accountant, the cost-effective solution is to work with an outsourced accounting team that offers customizable services. That way, you’ll get the exact level of support you need, while keeping overhead expenses to a minimum.
Access to Expert Services
Dental accountants stay up to date with the latest financial regulations, strategies, and technologies. Outsourcing your accounting work means gaining access to the accounting industry’s best practices without slowing down your own daily operations.
Improved Financial Analysis and Decision-Making
Outsourced accounting firms provide detailed, customized financial reports. These documents present your financial data in an organized format that equips you with the information you need to make sound business decisions.
If you work with an accounting firm that offers a full range of financial services, you’ll have access to comprehensive accounting, bookkeeping, and financial analysis—everything you need to protect your assets and plan for a prosperous future.
Essential Considerations When Outsourcing Accounting Services
To choose the right accounting team for your dental practice, look for a provider with experience in the healthcare sector. Your accountant should already have some knowledge of dental practice operations and regulations. Or, ideally, they’ll be like Duckett Ladd—entirely focused on the dental industry.
Consider the full range of services offered by the accountants that you consider working with. These may include:
- Tax preparation
- Payroll services
- Financial advising
- Acquisition and disposition planning
Keep in mind that the cost of accounting services varies widely based on the level of service. Basic tax prep services are often fairly inexpensive, while financial planning services may demand higher rates or charge based on a percentage of the amount of money being managed.
Shop around, discuss rates and contract terms, and choose a provider with experience in your industry. Additionally, consider the intangibles. A good accountant can provide a strong, long-term working relationship. Stability, trust, and compatible communication styles are valuable benefits.
Get Accounting Services and More From Duckett Ladd
At Duckett Ladd, we’re a team of CPAs and advisors that works exclusively in the dental industry. Our services include tax planning, bookkeeping, financial statement preparation, and more. To learn more, contact Duckett Ladd today.