Like any small business, cash flow troubles can cripple your dental practice. Simple dentist accounting and bookkeeping mistakes can create financial problems that you do not want for your growing practice.
While you are an expert in the dentistry field, accurate financial records are best left to accounting experts. They have proven systems that show the true financial health of your dental practice.
With this in mind, know the common accounting mistakes that you want to avoid.
1. Mixing Cash Flow and Profit Numbers
Profit numbers do not represent how much cash is available for purchases. Misunderstanding the differences between your cash flow and profit statements can lead to mismanaging how money gets spent. This rookie mistake can happen with an untrained bookkeeper.
2. Not Closing the Books on a Monthly Basis
Typically, you want to record transactions on a monthly basis and reconcile different accounts for that period. Adding transactions from the previous period results in the wrong balance adjustments. Nothing will match your financial reports or bank balance.
3. Not Hiring an Experienced Accountant
Hiring an accountant that specializes in dentist accounting helps to ensure you maintain an accurate view of the financial health of your practice. Hiring an inexperienced bookkeeper or trying to handle it yourself can result in an incorrect reconciliation of the finances.
Get Accounting Help for Your Dental Practice
Partner with Duckett Ladd, LLP for help with building the practice you want. Their trusted accountants will make sure your financial records accurately reflect your success. Visit http://duckettladd.com to schedule an appointment today.