Bookkeeping for dental practices: are you making these bookkeeping errors?

As your dental clinic grows, it can become more and more difficult to stay on top of things.

Dental clinics are businesses too. And like any other business owner, dentists and their staff must dedicate a portion of their time without patients, doing administrative tasks such as ordering supplies, managing appointments, and yes, bookkeeping.

At Maximum Business Solutions, we provide accounting software for your bookkeeping to a wide range of businesses, including those in the dental industry. And no matter the industry, there are some errors we see occurring time and time again.

Is your dental clinic making these common bookkeeping mistakes?

1. Doing your own dental bookkeeping

If you’re not currently engaging a professional bookkeeper to look after your clinic’s finances, you should start now.

Not all dental practices have their own in-house professional bookkeeper. Some dentists may like a more hands-on approach towards their business accounts, while others are worried about their cash flow and expenses but are unsure about the next steps that need to be taken.

In our line of work, we’ve seen many businesses whose internal bookkeeping simply isn’t up to scratch.

More than just “keeping the books”

There’s more to bookkeeping that meets the eye. Unclear reporting, inaccurate record keeping, and payroll errors are just some of the hidden pitfalls we see too many business owners stumble into when doing their own bookkeeping.

Bookkeeping is not just about recording every single financial transaction. It gives business owners the tools to properly make decisions that will help improve business operations and essentially make a greater profit.

Not everybody is born with a knack for numbers. There’s no shame in admitting that! So it’s important to hire an expert so you can make the best possible decisions.

If you’re looking at finding the perfect partner to handle your bookkeeping requirements, let Maximum Business Solutions take care of your dentist’s bookkeeping needs.

2. Cash flow ≠ profit

Another common bookkeeping mistake being committed is not knowing the difference between cash flow and profit.

Make no mistake: the cash that flows in and out of your business is separate from your profits!

Cash flow refers to the money coming in to (revenue from sales, consultations, services, etc.) and going out of (expenses) your business.

Profit is, in a way, the next step beyond cash flow: profit refers to the remaining amount of revenue after expenses are deducted.

This might seem like a fairly simple concept, but it’s an important one in bookkeeping. It’s also something some small business owners sometimes struggle to understand.

Talk to a bookkeeper today about how small business bookkeeping in Melbourne improves your business cash flow; if these concepts are new to you or you feel out of your depth.

3. Recording and tracking in the wrong period

Bookkeeping mistakes can happen. It’s easy to accidentally mistype a date or list a transaction in the wrong accounting period. We’re only human, after all, and as the owner of a busy dental clinic, no-one will blame you for missing something that small while you’re busy with everything else that goes into running a clinic.

If you record a transaction in the wrong period, your clinic is left with an inaccurate idea of your business expenses, revenues and how money is flowing.

Fortunately, bookkeeping mistakes can be fixed by experienced dental accountants.

What you won’t get back, however, is your time.

Time is money after all, and time spent going over records to correct bookkeeping errors is less time you and your team could be spending looking after patients or simply stepping away from the office.

A bookkeeping expert for your dental clinic

No matter how great your patients’ oral health, if your bookkeeping practices are full of mistakes and errors, it could affect your practice’s financial health.

If you’re looking for a bookkeeping service that can help clean or manage your account, get in touch with us today.

Maximum Business Solutions is a Beaumaris-based bookkeeping service that caters to small and medium-sized businesses just like yours. Working seamlessly with your accountant, we’ll get your finances back to top health.

For more information on bookkeeping for your dental practice, organise a catch-up today or give us a call.