Dental practices require an understanding of how the practice relates to banking as it pertains to accounting. In many cases, this is why so many dental practices fail to become financially stable. Unfortunately, not knowing the difference between income and cash flow - Most dental offices and their in house bookkeepers simply don't understand how to read a balance sheet and know when it's time to reconcile the books. The good news, however, is that Bookkeeping Aesthetics Bank Reconciliations Service can help you and your office better understand the differences between these two very important financial categories.
Prevention is so important and the dentist needs to be informed on the subject.
One mistake that most dentists make is to not make sure that all of their cash receipts have been accounted for. This means that they might have money coming in but not leaving the office, or vice versa. In order to ensure that cash flows are accurate, a dentist must also make sure that the cash receipts are accurate too. This is where a good account manager comes into play. Bookkeeping Aesthetics Bank Reconciliations will help to ensure that the accounts are up to date, which means that no cash is being taken out of the bank balance when accounts have been paid. This can be an extremely significant difference.
Lastly, another mistake that most dentists make is to underestimate the importance of maintaining a good business relationship with their financial custodian. Many times, dental offices just don't care about maintaining a good relationship with the custodian, since the custodian is there to assist them in getting their books in order. This is a huge mistake, however, because the custodian is the one responsible for collecting all the checks that come in. By building a relationship with the custodian, a dentist can avoid the unnecessary costs of running his or her practice with a custodian that doesn't care.
If you have concerns in any of these areas, please contact us to help you increase your protection.