Bookkeeping Support – Outsourced!
How to run a dental practice
Since I provide outsourced dental staff training support for dental practices, I am always looking for new resources that could be helpful to dentists. Recently, I had the pleasure of meeting Sona Wegner, Owner of Bookkeeping for Dentists, LLC. She provides bookkeeping services from her home office in Baltimore to dentists across the country.
She has written the following article to share her thoughts on why dentists may want to outsource their bookkeeping needs.
5 Things to look for when hiring a bookkeeper for your dental practice
Bookkeeping is so much more than data entry. It’s complicated enough for CPA’s to make great profit by fixing the mistakes of bookkeepers. When I worked in the CPA firm preparing the taxes, it took only took an average of 2 hours to prepare a dental practice tax return. However, the preparation and fixing mistakes in the bookkeeping is what took days or weeks. Fixing the books for the tax return is usually why you’re getting large bills from your accountant.
Here are 5 things to look for when hiring a bookkeeper so you can avoid getting hit with large bills from your accountant and use your time and money for more important things, like generating profit.
I suggest looking for a bookkeeper that has a financial or accounting related degree. An accounting 4 year degree would be best. It’s important for a bookkeeper to understand the fundamentals of accounting to ensure an accurate view of the financial condition at all times. The bookkeeper should know the IRS guidelines, the dental industry standards and generally accepted accounting principles to grasp where things should go when entering items into QuickBooks.
The bookkeeper should have as much experience as you can afford, because great bookkeeping is instrumental in growing your practice and maximizing profits. It’s equally as important to have experience as it is to have the education. The bookkeeper will need to know how to do your books without your instructions. They also need to know tax code and implications of certain transactions because I have seen CPA’s not review the books carefully and miss big mistakes. This will go along with the educated point that I listed above.
3. Tax Preparation and Planning
Come January 15th, you realize tax season is here. You call your bookkeeper in a panic, and if you had a great bookkeeping solution, December would have already been entered into QuickBooks and year-end financials would be the push of a button away. You wouldn’t have to worry about filing late, mistakes, missing expenses, or risking an audit. And a great bookkeeper will warn you about red flags that might arise in terms of unforeseen tax burdens.
- Remote & Outsourced
Outsourcing frees up time and resources to focus on your practice strategy and goals. You can tap into the resources and expertise of the outsourced bookkeeper and reduce operating costs. Using a remote or outsourced bookkeeper frees up expenses like wages, paid time off, payroll taxes, unemployment taxes, worker compensation insurance, and benefits. For an in-house bookkeeper you’d also have to provide work space, office furniture, office supplies, software and computers. By outsourcing your bookkeeping, you can receive services from a fantastic degreed professional at a fraction of the cost.
Look for a bookkeeper with specific knowledge and experience in dentistry. If they’ve worked with clients similar to you, your bookkeeper will better understand what you and your practice needs to function financially. She will be better able to understand your particular needs and how best to help you.
Sona Wegner is the owner of Bookkeeping for Dentists, LLC. She has a four year degree in accounting with eight years of experience in accounting for dentistry. Sona provides dental bookkeeping services with beautiful monthly detailed transactions and reports at the root of where the dental practice spends, right to their inbox. Visit www.bookkeepingfordentists.com or contact Sona at firstname.lastname@example.org or 443-604-7549.
Income Statements Matter
One more thought as you are thinking about a bookkeeper for your solo or group dental practice – income statements are key to running your business! If you are not getting an income statement every month, then you are missing out on a great opportunity to see how your business is running and you cannot make good decisions without knowing your numbers. In fact, I offer a service called Know your Numbers – I can remotely connect to your dental practice computer and run a series of reports to help you see how your business is performing. As part of this evaluation, I request an income statement so I can calculate the percentage of income you are spending for staff, supplies, lab and general overhead. You deserve to know how the business side of your practice is performing – make sure you receive an income statement!
Handling your financial statements properly is just one way to run a successful group dental practice. If you’re interested in new ideas on running a dental practice, please subscribe to my weekly blog. One of the biggest challenges to managing a dental practice is managing dental insurance. With dental insurance handled, then dental marketing for new patients becomes a primary focus. In today’s day of online reviews, handling patient complaints well is essential. As your practice grows, hiring dental staff becomes more important. With 16+ years of dental practice management experience, I’m open to your questions to help you run a successful dental office.