2 Essential Metrics That Dentists Must Observe Closely

It is that time of year again! Tax season is just around the corner, which means it is time to start getting your paperwork in order. One of the most important things you must do is ensure you have all your books in order. It means taking them out and checking them with your dental tax accountant.

As a dentist, you are uniquely positioned to help your patients maintain oral health. However, you should also be aware of key metrics to make the most of your deductions. You can better optimize your time and maximize your deductions by understanding metrics such as the number of patients you see per day, the average length of each appointment, and the average number of procedures per patient. 

In addition, keeping track of your average treatment costs can help you identify ways to reduce your expenses. By understanding these key metrics, you can ensure that you provide the best possible care for your patients while maximizing your financial well-being.

Annual Patient Value

As a dental professional, you know the importance of providing high-quality patient care. However, you may need to become more familiar with the financial aspects of your practice. Your dental tax accountant can be a valuable resource in this area, and one suggestion they may have is to keep a close eye on your annual patient value.

This metric refers to the average amount of revenue your practice generates from each patient. It can help evaluate your marketing and patient retention efforts, as well as your overall profitability.

There are several different ways to calculate your practice’s annual patient value. One method is to take your total annual revenue and divide it by the number of patients you saw during the year. It will give you a rough estimate of how much each patient is worth to your practice.

Another way to calculate annual patient value is to track the revenue generated from each patient over several years. It will give you a more accurate picture of the long-term value of your patients.

Once you understand your annual patient value, you can start to look for ways to increase it. For example, you could focus on attracting new patients with higher incomes or providing additional services that generate more revenue per patient. Whatever strategies you decide to pursue, keeping a close eye on your annual patient value can help ensure that your dental practice is as profitable as possible.

Broken Appointment Percentage

Did you know that missed appointments cost your dental practice thousands, and they also negatively affect patient outcomes? That is why keeping an eye on your broken appointment percentage is necessary.

There are several reasons why patients might miss their appointments, but one of the most common is simply forgetting. That is why it is critical to have a reminder system, whether a phone call, text message, or email.

No matter the reason, missed appointments are costly for your practice. Not only do you lose out on revenue, but you also miss the opportunity to provide care for your patients. That is why keeping an eye on your broken appointment percentage is so important. By doing so, you can take steps to reduce the number of missed appointments and improve patient outcomes.

Conclusion

By closely monitoring these metrics, you can have a more productive consultation with your dental tax accountant. It will help ensure that you are on the same page with your accountant and that your taxes are filed correctly.

As the tax season looms, you must immediately ask for help from Ash Dental CPA. As a seasoned dental tax accountant, we can maximize your deductions so that you can optimize your profit. So, contact us now for a consultation!