Increasing The Growth and Profitability of Your Dental Practice
Posted by Administrator at 8:47 PM on Jan 21, 2016
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Before you can increase the growth and profitability of your dental practice, it’s important to first know and understand your business finances and learn to invest to grow. Below are the 4 best practices that dentists can use in order to get an accurate view of their business finances and decide which efficiencies can be gained.
1. Evaluate the daily banking of your practice – The very best way to manage your cash flow is to determine if a daily bank deposit is being made. If you let the checks accumulate, you are delaying your own collection process. By keeping an eye on your daily deposits, you can gain control of your practice’s cash flow.
2. Consider a line of credit – In order to meet the short-term expenses associated with the day-to-day management of your practice, you may want to consider having a line of credit. It’s also a good idea to track your patient accounts and have processes in place if any accounts need to be sent to collections.
3. Understand how your patients’ prefer to pay– Keep track of how many patients use cash, credit cards, checks, and insurance payments you’re your patients utilize Health Savings Accounts? Examine how many days it takes for all of these different methods to show up in your business checking account.
4. Find ways to save – As a small business owner, you should take advantage of any available discount options. Use business credit cards for payments, especially ones that offer rewards. It’s also smart to pay early and use bill pay and ACH options to eliminate writing checks every day.
Hiring a team of trusted advisors such as bankers, IT consultants, and CPAs will allow you to focus more on running your practice and providing quality care to your patients. For help keeping your finances in order, please contact Dental Bookkeeping today!