Dental Bookkeeping for Dentists & Dental Offices WCG CPAs & Advisors

We strive to give dentists a better opportunity to succeed in the business side of patient care by minimizing the learning curve of finances. And the QuickBooks Online reconcile feature will walk you through reconciling any account on your balance sheet. It also leaves you and your CPA historical reconciliation reports which CPA’s depend on for their review work.

You’ll work with one dedicated bookkeeper, and they have a team of support behind them.

Knowing the financial health of your practice gives you the clarity to make informed decisions. That’s why, as 21st century bookkeepers, we still hold traditional values when it comes to being there for our clients. We provide unlimited phone and email support and pledge to always respond within one business day. It’s confusing and time-consuming to try and remember which purchases or deposits belong to the business.

Download these documents and save with bookkeeping records

The mission of the ADCPA is to enhance its members’ expertise through the sharing of knowledge and resources to provide progressive consulting, accounting and tax services to dental professionals. So while the earlier suggestion of adopting cloud-based dental accounting software is effective at cutting down on paper, it doesn’t eliminate the need to keep certain documents. Without the following documents stored safely in your records, you could face big problems. Reviewing your finances is an important part of ensuring your bookkeeping process is working well. Not reviewing your financial situation regularly can leave you with unanswered questions about your business.

• You or the patient can still submit a claim to their insurer for reimbursement if there is one.
• He now writes articles on personal and corporate finance, accounting and tax matters, and entrepreneurship.
• We recommend owners follow strict guidelines for keeping business and personal expenses separate.
• A friendly dentist who counsels you on the best ways to maintain and improve your health.
• We are onboarding clients through out the year (even during tax season).

for dentists

Every business is subject to the same fundamental accounting principles, but their applications vary significantly due to the nuances of each industry. As a result, choosing a generalist accounting advisor is often a mistake for dentists. Dentists are rarely excited by the prospect of financial concerns interfering with their craft, but you can’t https://www.bookstime.com/articles/retained-earnings-formula afford to ignore that aspect of your responsibilities. Dental practices are businesses, so you must understand the monetary aspects to run them well. In many cases, it makes sense to bring the bookkeeping process in-house. It’s usually straightforward enough to have one staff member handle it with other administrative tasks like scheduling.

QuickBooks reporting is geared specifically toward organized businesses. QuickBooks uses a full chart of accounts with assets, liabilities, and equity accounts in addition to the income and expense accounts. The reports are all built on these available accounts and can be exported into Microsoft Excel® spreadsheet software for further analysis.

• To help you set yourself up for success, here are some common pitfalls dentists fall into that you should know to avoid.
• Business owners have multiple legal entity options, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
• When you open your dental practice, you become responsible for your dental practice accounting.
• Fortunately, modern cloud-based software has made that entirely unnecessary.
• Most of her finance knowledge stems from her career as a Financial Consultant and Branch Manager at the 7th largest US bank.

Don’t hesitate to seek professional help if you need it, and remember that financial management is a continuous process that requires ongoing attention and effort. One of the key aspects of bookkeeping for dental practices is tracking income. This includes recording payments from patients, insurance companies, and other sources of revenue. It is important to accurately record income in order to properly calculate the profitability of the practice. Some of this information is recorded in both the patient management system, and again in the QuickBooks Online accounting software.

Payroll Setup & Processing

The final collected revenue in these two separate systems should reconcile (match) at the end of the year. Dental accounting is an essential part of managing a successful dental practice. It involves keeping track of all financial transactions, including revenue, expenses, and cash flow.

• The biggest benefit to dental bookkeeping is one that drives pretty much every business owner regardless of the field that they are in, profit.
• Payroll, for example, should only be handled by someone with formal payroll training to ensure that your business stays up to date and compliant with the changing payroll legislation.
• Apply for financing, track your business cashflow, and more with a single lendio account.
• Using a modern cloud accounting system like QuickBooks Online (QBO) allows dental practices to classify and organize their financial information into categories, such as revenue, expenses, and assets.
• We’ll keep track of your revenue and expenses, providing you with valuable benchmarks for sustainable growth.
• Most dentists prefer to focus on client work rather than business management, but you can’t afford to neglect the function.

Typically, choosing the fee-for-service approach implies a shift to a quality-over-quantity strategy. You’ll likely have fewer patients, but your profit margins for each one should increase. Dental practices have multiple options when it comes to determining their billing structures, and dental bookkeeping they have a significant effect on your overall business strategy and accounting processes. Bookkeeping can be one of the most time-consuming aspects of small business accounting when you do things by hand. Fortunately, modern cloud-based software has made that entirely unnecessary.

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