After 15 years of experience working with dental practices and through owning dental practices myself, it is evident across the entire industry that many practices are using out of date procedures and technology to run their dental practice finances & accounting.
The days of handwritten ledgers, updating cumbersome spreadsheets, sending boxes of invoices to your accountant last minute before the looming deadlines before submission, fortunately no longer cease to exist.
The last few years have seen a revolution in the accountancy world. The technology has evolved whereby much of the sending and processing of invoices can be done with capable technology systems.
Thus reducing manpower needs in both dental practice and also accountancy firms alike, potentially leading to saving time and money.
Working with hundreds of dental practices across the UK, we have detailed below what we know to be the most important things you need be doing in your practice to ensure your finance systems are streamlined to help you manage your practice better.
Use Cloud-based Book-keeping + Invoice Scanning Software.
Cloud based accounting software such as Xero or Quickbooks online have revolutionised small business accounting. Combine this with scanning support software such as Receipt bank – once you have mastered the systems you will have a slick system in place.
Invoices from suppliers can be scanned via phone or scanner or emailed directly into Receipt Bank which can be automatically be programmed into software like Xero or Quickbooks online.
The invoices can be processed in Xero whilst all your bank statement information can be securely fed directly into Xero with no need to print off bank statements and sending them through to your accountant.
By having the bank data coming straight into Xero saves considerable time and can greatly improve the efficiency of your dental practice.
All your invoices are also stored in Xero too, so trying to find an old invoice is easy as they all reside in the Cloud accessible 24/7 from anywhere with an internet connection
By having everything available on the cloud, what you see on the cloud is also what your accountant sees too, allowing your accountant the ability to advise on the performance of your dental practice finances, assisting with adding value to your practice.
The technology allows one to collaborate and work together to improve your dental practice performance.
Improve Practice Performance via Management Reporting
Software packages such as Xero allow you to run a variety of financial reports for you to analyse over a whole variety of time periods.
We advise clients to run such reports at least quarterly so they can assess and routinely judge and keep up with the performance of their dental practice.
Reports include Profit and Loss, Balance Sheet, Cashflow reports just to name a few. Making it easy to understand your progress and keep track of your expenditure.
Make Quality Decisions
With the technology available today there is no excuse as to running a much more efficient and profitable practice.
By looking at the performance detailed in the reports you can interpret areas that need changing in your dental practice, whether it means cutting costs, increasing fees, or a increasing activity. Understanding the management reports can only help you a run a more efficient and successful dental practice.
More on How to Streamline Dental Practice Finances & Accounting
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