As a dentist, you would be an expert at helping patients maintain healthy teeth and gums. Can you really say the same about your financial health? Not all dentists can. The demands of your role as a health care provider can make it really challenging to focus on much more than your patients and new developments in your field. A direct impact of this is that aspects like bookkeeping, payroll, business taxes, superannuation as well as creditor and debtor management take a backseat.
The importance of correct bookkeeping for your dental practice
One of the primary reasons for bookkeeping is to allow you to be able to reconcile your financial information and understand where your dental practice currently stands, so that you can make informed choice. Proper bookkeeping is also one of the keys to better cash flow management, and allows you to keep a close tab on your business finances, such as how much is going out, how much is coming in, and how much is receivable or payable in the future.
Having cash flow trouble can spell trouble for your practice, and mistakes in bookkeeping can prove costly, resulting in avoidable losses of time, money, and resources. There are many dentists who may mix up profits and cash flows, which are two different things or even fail to budget for superannuation and BAS payments. This results in spending money that isn’t yours and shouldn’t be spent. Transactions for equipment finance need to be entered correctly, ensuring that interest is accounted for. We have seen many incorrect variations in how these are entered, making profit and loss and balance sheet reports a lot less meaningful and sometimes even deceiving. Incorrectly entered transactions also make tax work for your accountant much more time-consuming at year-end, which usually means increased costs for your business.
How we can help you
On The Money Bookkeeping is a group of exceptionally well-trained bookkeepers and accountants. We are based in Box Hill but have experience in serving clients from across and beyond the state. We can look at your current bookkeeping records and work out a plan to move forward, correcting any errors and put in place best-practice methods to ensure correct and consistent reporting and budgeting. This will help you improve your back-end office efficiency and be more in control of your business finances.
We are a 100% Xero practice, which is one of the most advanced bookkeeping software packages available for medical professionals today. We are happy to share that all of our team members are qualified in bookkeeping or accounting and are Xero certified. Our goal is not just to do the bookkeeping well, but proactively find ways to save you money, claim additional, legitimate expenses, or claim back taxes or grants that are available to you that no one else has taken the time to notice.
Just as the wrong bookkeeping methods can cause much distress when allowed to continue unchecked for long periods, following best practices methodologies can help your practice flourish. At On The Money Bookkeeping, we are experienced with the principles for successful bookkeeping for dentists. We are well equipped to take that load off your shoulders so that you can focus on what you do best, which is maximising the oral health of your patients. Connect with us for a review of your existing Xero account as well as a no-obligation estimate for services.