Reducing Your Dental Practice’s Debt
Posted by Administrator at 8:30 PM on Jun 20, 2016
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Debt can be stressful, overwhelming and distracting. Especially if it feels like you just can’t ever get ahead! We know that all practices need new technology and other investments eventually, but if you’re drowning is debt, these investments can seem impossible to make.
It’s time that you make some changes so that you can help your practice meet its full potential! If you’re hundreds of thousands of dollars in debt, like many dentists are, this can seem like an overwhelming process, but with Dental Bookkeeping, you’re not doing it alone. We want to help your practice succeed as much as you do!
Below are a few tips to help you reduce debt and help your practice become more profitable than ever:
- Examine Cash Flow – The first thing to do is conduct an assessment of your cash flow. This means logging the numbers for your net collections and production over the last year, the percentage of your accounts receivable for the last 3 months, and your total monthly payments (this includes leases, loans, and your practice credit cards). Once this is done, examine your monthly payments for your dental supplies, salaries, lab, facilities costs and other miscellaneous expenses. You need to know where your cash is going! If this seems too daunting for you, Dental Bookkeeping can conduct a cash flow assessment for you!
- Hire Experts To Examine Practice Finances – Every dental practice is different, so it’s hard to give a one-size-fits-all answer. We know that you are a busy dentist and not a financial expert, so you should consider hiring outside help to reduce not only your debt, but also your stress.
- Update The Systems – Inefficient systems will contribute to your practice’s debt and overhead, which is why it’s important to keep them up to date. Updating your systems will also help your practice be more efficient and alleviate your money problems.
Debt shouldn’t control your life, but we know it’s a reality that you may have to face. It’s time to take back your dental practice and get your finances under control! For more information on alleviating your debt, please contact Dental Bookkeeping. We can help you become more productive and profitable than ever before!