Are you a Dentist with small to medium size dental practice? Dental practice owner wears many hats taking customer calls, taking care of patients, managing staff and paying the bills? These may be just very few of the things you do during the day. If you are looking to make your dental practice successful, you need to get your finances in order. We have compiled 6 top reasons dentists should hire a professional bookkeeper for your getting your practice to an optimal level.
Continue reading to learn more key reasons dentist should hire a professional bookkeeper.
Contents
Business & Financial Transactions are Accurately Recorded
Every small business owner must know where cash comes from and where it goes. Bookkeeping makes this crystal clear. For example, you can quickly determine how much your business spent on office supplies or how lucrative a given client or customer is for your business.
And don’t overlook the importance of accurate records when it comes to resolving discrepancies like those that can occur between employees, vendors, or customers. IRS requires accurate record keeping. See more details by visiting IRS website here
Easier to Budget Important Expenditures
Expense budgeting allows you to adjust your businesses’ budget quickly and easily. You can examine financial statements to determine the which products or services generate most amount of profit or losses.
Hence you can make better and more informed decisions. You can also maximize your profit by changing prices timely.
You can also increase or decrease your expenses to better serve your business.
Filing Dental practice Business Taxes is Much Easier
Tax time is stressful for any business owner. However, having a bookkeeper helps you organize your records and eliminates the need to sift through piles of invoices, paper receipts and other documents to gather relevant documents.
Proper bookkeeping ensures that information is organized all year long.
Click here to learn more about how long to retain your tax records.
Your records are organized and accurate in the event of an IRS audit
Even if you follow all the laws, there is chance you will see IRS auditor once in your lifetime.
While the chances of an audit for a small business are low, there’s always the chance of an audit no matter how compliant your business is with tax laws and guidelines.
Thorough bookkeeping is your first line of defense when and if the IRS decides to audit your company. Organized bookkeeping records allow you to answer the IRS’s questions about any financial aspect of your business.
Click here how to Avoid an IRS Audit. In case of an audit, you will realize the advantages of hiring a bookkeeper for your business. It is very difficult to run a fulltime business and also to dig though hundreds of boxes and try to find every receipts 3 years later.
Dental Practice Cash Flow is improved as you can budget better.
Cash flow is on top of every entrepreneurs and small business owners mind. By having your financials organized give you better chance to monitor your cash flow on monthly basis hence, you mitigate the challenge of running out of cash.
At a glance, your bookkeeper can tell you how much profit or loss your business generates and if you need to make any changes to your business to improve cash flow.
Hiring a professional bookkeeper for your dental practice, can save you headaches in the long run. You can be more proactive and apply line of credit, Apply for SBA Loan or raise cash from family and friend before you run out of money.
You may even need to consider invoice factoring if you are in a business that takes months to get paid.
It is easier to Obtain Dental Practice Bank Loans.
It is easier to obtain Bank Loans as you have your financial statement ready all the time.
When bank requests a profit and loss or balance sheet, all you have to do is Print and send to them.
If bank has any questions, its easy for you to answer the questions as all the financial data is easily accessible.
Final Thoughts
How that you have read our article, Top Reasons Dentists Should Hire A Professional Bookkeeper, you should start looking for a professional bookkeeper who has at least 5 years experience in Dental industry. Dentist office accounting is very different from lets say a restaurant or a retail store, hence you need a bookkeeper how is self started and experienced in working with Dentists.
Learn More
What Is a Full Charge Bookkeeper?
How to Find CPA Firms Near You? (and Pick the Best One)
Best Tax Write Offs for Dentists in 2021-2022
