Mastering Dental Bookkeeping: 7 Tips for a Profitable Practice

For example, if salaried personnel are paid on the 15th and the last day of the month, we would say they are paid semimonthly. People paid semimonthly will receive 24 paychecks during a year. (People paid every two weeks – such as every other Thursday – Debt to Asset Ratio are said to be paid biweekly and will receive 26 paychecks during the year). Usually the pay for the hours worked in excess of 40 hours per week. Federal laws require payment for these hours for employees who are not able to control their hours.

Need Bookkeeping Built for Medical & Dental?

• When pricing is aligned with industry standards while reflecting the unique value provided, practices can enhance profitability and…
• Separating personal and business accounts is crucial for clear financial insight.
• The amount of insurance that was incurred/used up/expired during the period of time appearing in the heading of the income statement.
• Not only will it streamline the billing process, make things more efficient and eliminate the need for manual data entry, but it will also minimize the number of errors you have.
• If you decide that bookkeeping isn’t your strong suit, they also have a paid bookkeeping service to make the process even easier.

Taxes are a significant expense, and dental practices have unique tax deductions. By planning, you can maximize deductions for expenses like dental supplies, equipment, and continuing education. A dental CPA can ensure compliance with tax regulations and proactively reduce tax liabilities. At Dental CPAs, we provide tailored tax planning to help you keep more of your income. Regular accounting for HVAC business is critical and your accounts should be reconciled at least monthly to identify discrepancies and ensure the accuracy of your financial records. Regular reconciliation helps in detecting errors, preventing fraud, and maintaining a clear picture of your company’s financial health.

• Finding an accountant to manage your bookkeeping and file taxes is a big decision.
• Some withholdings, such as health insurance, were recorded as reductions of the company’s expenses in Salaried Payroll Entry #1.
• Dental practices are tricky, because you can be completely booked, provide amazing care, and still have trouble paying your building lease some months.
• As a dental professional, your days are filled with providing exceptional patient care, managing a talented team, and staying up-to-date with the latest advancements in dental technology.
• Bookkeeping for dentists is essential for keeping your practice financially healthy and growing steadily.

Create A Monthly Financial Report

Setting up patient financing options or offering incentives for early payments can also stabilize cash flow. Modern accounting software can streamline bookkeeping processes and reduce errors. Look for solutions that integrate with your practice management system and offer real-time financial insights.

Scaling alongside your growing business

As a result, an independent contractor submits an invoice for the services provided and the company issues a non-payroll check. As you learn about accounting for payroll and fringe benefits, keep the https://www.bookstime.com/ matching principle in mind. As the above examples show, the date on which a company pays wages or fringe benefits is not necessarily the date on which the company reports the expense on its financial statements. Sally McKenzie was CEO of McKenzie Management, a full-service, nationwide dental practice management company. For over 30 years, Sally immersed herself in techniques, systems, and methods to improve the performance of dental practices.

Your cash flow statement can tell you how your practice is spending its money, so you can also understand how much cash your business is bringing in. Tax compliance is vital for dentists because failing to comply can lead to significant fines or audits. Keeping detailed and accurate financial records year-round simplifies tax preparation. I specialize in taking bookkeeping stress off the plates of dental practice owners in Metro Detroit and beyond. When you can see exactly where every dollar goes, you can spot problems more easily. Perhaps your supply costs are increasing, or your overhead percentage is significantly above the industry benchmark of 60-65%.

Depositing Federal Payroll Taxes

These might seem little at first, but if you don’t routinely manage and reconcile your accounts payable, expenses, and other financial data, they will eventually add up. dental bookkeeping The amount of insurance that was incurred/used up/expired during the period of time appearing in the heading of the income statement. The amount of insurance premiums that have not yet expired should be reported in the current asset account Prepaid Insurance.