Typical Bookkeeping Mistakes to Avoid in Dental Practices

Many dentists focus on providing the best and most effective service care for their patients without minding the business side of their practice. This can lead to many issues and problems that can be detrimental to the practice. A dental practice is a business, and as with any other business, it needs a well-organized bookkeeping system to ensure the operation runs smoothly.

Bookkeeping is critical to providing a clear picture of your dental business’s financial health. It also helps you know where the money is coming from and where it is going. Without a well-kept bookkeeping system, a business may be in financial trouble.

But before you hire dental bookkeeping services for your company, some of the most common bookkeeping mistakes that dental practices make so that you have an idea of how to avoid them.

1. Not Creating a Separate Bank Account

Creating a bank account for your business is a safe and helpful practice for keeping track of your business’s finances. This way, you can determine exactly how much your business makes and spends. As a general rule, you shouldn’t use your personal account for business expenses. You must set up a business account with a bank.

A business bank account is a separate account you can use to manage your business finances. By keeping your business finances separate from your personal finances, you can better understand your business’s financial health. This can help you carry out better decisions about your business.

2. Not Keeping Track of Accounts Payable

Accounts payable pertains to the money your business owes to suppliers and vendors. With dental bookkeeping services, monitoring the accounts payable is critical. This is because you must know the net 30 days of the accounts payable. This is the number of days that you have to pay your bill. 

You may end up paying off a late fee if you don’t know the net 30 days. Furthermore, if you don’t keep track of your accounts payable, you may miss payments and damage your relationships with vendors.

3. Not Creating a Budget

Establishing a budget is one significant thing you can do for your business. However, many dentists don’t create a budget. This is because they think it’s unnecessary.

Not having a budget can contribute to overspending. In addition, you may not have enough money to cover your other expenses, which can make your business suffer.

4. Not Hiring a Dental Accountant

Most dentists think they don’t need a dental accountant to handle their finances and monitor their business’s financial performance. This is because they think that hiring their services is a waste of money. Plus, they can allot it better on other expenses, such as hiring a dental hygienist or purchasing new dental equipment. 

However, they don’t realize that a dental accountant can save them money in the long run. Dental accountants play a vital role in ensuring the financial success of your dental practice. They can help you make sound financial decisions, monitor your financial performance, and save you time and money.

Final Thoughts

A few typical bookkeeping errors are often made in dental practices. These include not recording patient payments, not separating personal and business expenses, and not keeping accurate records of patient visits. By avoiding these errors, dental practices can improve their financial health and better serve their patients.

Ash Dental CPA provides top-notch and cost-efficient dental bookkeeping services to monitor your dental practice’s financial performance. Get in touch with us today for more information!