Bookkeepers and accountants are extremely organized people in general. They are able to find clarity in chaos which makes them great business partners and managers. Have you ever wondered? How can you help your dental accountants and dental CPA streamline your dental practice accounting? In this guide, we’ll help you learn the tricks you need to streamline dental practice accounting.
Hire A Manager Or Administrator
A practice manager pays the practice bills, manages payroll, assists with HR activities, and more. Shift the burden of administration to a manager so you can focus on doing what you do best.
A manager often provides relevant accounting information, like financing agreements and equipment bills when required, and helps with basic bookkeeping, which streamlines the accounting for your dental practice.
Use a cloud-based payroll platform.
If you own an extensive practice and don’t use a cloud-based payroll platform, your bookkeeping reconciliations would take twice as long. Cloud softwares enable your dental CPA to monitor your transitions regularly and reconcile statements before things turn worse. You can streamline your dental bookkeeping by moving to the cloud.
Use a single credit card to pay for everything.
Ideally, 99% of bill-paying should be through a corporate credit card, especially recurring payments. As a dentist, you should do minimal check writing no more than 3 to 5 a month. This provides consistent and accurate cash balances to be maintained in your bank account and makes your dental accountant’s life easier. Most dental bookkeepers agree that this reduces time spent paying bills and bookkeeping.
Don’t complicate your accounts.
Want to save up on dental accounting fees? Simplify your accounts. Your dental accountants has less to contend with and maintain when you have fewer bank and credit card accounts. As a result, you pay less for accounting fees.
It is recommended that even large practices do not have more than one bank account, one savings account, and 1-2 credit cards, including employee cards. To simplify dental accounting, use credit cards and checking accounts from recognizable banks, such as Bank of America and Chase.
Most national banks offer much more robust business features, and they can be easily accessed online regularly. This saves time and reduces headaches.
Accounts That Are Inactive And Old Should Be Closed Off
Are you still holding old bank accounts in which there is no activity, or do they have small balances? It is unfortunate that many dentists do not realize that their bookkeeper will have to continue to download monthly statements and reconcile the account with software so long as there is a balance on the account.
Tracking and reconciling old, unused accounts is the biggest pet peeve of most dental bookkeepers. This is a useless waste of time.
Closing inactive accounts with your bank and credit card is a smart move.
Use Systematic Digital Documentation
Today, it is becoming increasingly important to go paperless in all areas of business, especially documentation.
Apart from being paperless, you need an organized system for managing the things your dental practice accountant will require, like loan documents, bank statements, customer and equipment invoices.
Having documents easily accessible will make accounting smooth and convenient for everyone.
If your accountant doesn’t ask these questions, it’s time for you to find a new account!
Keep Business And Personal Matters Separate
Mixing personal and business transactions is never a good idea. Ever!
It’s simple. Transactions related to people’s personal lives should be kept in personal accounts, and business transactions should be held in business accounts.
By mixing your personal transitions and your business transactions, you’re creating nothing but utter chaos for your dental bookkeeping, and they will hate you for it.
There will be a lot of transaction inquiries that your dental CPA will not understand, causing you to answer hundreds of questions resulting in a lot of wasted time.
These tips and tricks will optimize your accounting process when working with a dental bookkeeper or a dental accounting firm. The first step to improve any business process is to develop a system that works for you and your business. We recommend you implement these tricks to streamline your accounting and bookkeeping and to help your dental CPA.