Assess Your Dental Practice to Increase Profitability

Your first priority as a dentist is to provide the most professional and effective care for your patients. To do that, you must follow the dental cpa technical developments. What is very important is work knowledge about business aspects of practice.

Whether you plan to start a new practice, buy a practice or become a partner in one that already exists, you must have a practical knowledge of the financial options at your disposal.

You must also align yourself with professional CPA firms in Maryland that can help steer you the right way. Below are some of the key areas you should review to help you answer the above questions.

• Equipment and Facilities

Are you using modern equipment your patients expect you to have? If not, you should consider utilising dental cpa equipment financing to get up to speed.

How does your waiting room look? Is the furniture faded or worn out? Are the colors pleasing to the eye? Are there a variety of magazines available for patients to read?

Do you have enough examination rooms to match the number of patients you either have now or expect to have in the future? If your patients are having to wait a long time to be served, you should consider.

• Marketing

Have you evaluated the effectiveness of your medical practice accounting plan? When times are moving out to be difficult, many dentists cut the advertising plans.

This is a bad idea because although you may be saving expenses, a good marketing plan will strengthen your patient base in good times and bad.

Do you have a website? Surprisingly, many dental offices don’t, which limits their reach to the community. You don’t have to spend thousands of dollars for an elaborate site. It can be done with an easy process.

Do you have a Facebook page? It takes little effort to set one up and can help you attain more business. Your patients should be encouraged to become “fans” of your page so they can stay up to date on your latest offers and news.

Do you encourage patients who you know have had a positive experience to do an online review of your practice? This is one of the best things you can do to increase your business.

• Financial

Do you receive monthly financial statements? Many dentists don’t have an accounting system in place to receive current results.

Instead, they gather up all the data at year-end to give to their dental cpa for tax preparation. Just knowing your production numbers isn’t good enough. You have to know the level of profitability each month.

Do you regularly monitor your collections? Don’t make the mistake of assuming the front office staff has it handled.

Delinquent accounts can get out of hand quickly. Do a monthly review of your system’s aging report. If you have a serious problem beyond the scope of your office’s ability to deal with it, call a professional tax preparation in Maryland to work your past due receivables.

Have you analysed your debt structure? If you have a variety of debts that require a lot of monthly payments, it could result in a tight cash flow despite profitability.

In such a circumstance, you should consider getting a debt consolidation loan. As mentioned earlier, using dental accountants equipment leasing gives you the technical edge you need to prosper and saves valuable cash flow because there are no down payments required.

Steps to Consider When Looking Out For Dental Practice

How do you measure success in your dental practice? Do you measure success by the size of your practice and the number of patient files? Do you measure success by the amount of income the practice produces for you, the dental cpa accountants?

Due Diligence Review

Before you buy practice, you must really review all the documents provided by the seller.

Don’t be shy about asking questions about all practice fields: marketing programs, personnel, supply vendors, accounting functions, and review of patient records.

With the help of CPA for doctors, you should analyse the practice’s tax returns and financial statements. Perform trend analysis not only from income, but also calculate the patient.

Bank Financing

The banking industry is highly competitive, not only in terms of national institutions, but local banks as well.

Banks usually view accounting services for doctors as good credits and will go out of their way to provide the funding they need. If you go this route, a down payment equal to the purchase price will be required.

Also, if you buy into existing practices, the bank might require the previous entity to be dissolved and the newly made.

When you drill down to measure these areas of your practice, you identify weaknesses and can celebrate accomplishments.

Buying practices can be one of the most helpful experiences in your career. You must try to do a comprehensive review of the assets you buy. Choosing the right accountants for doctors can be very important.