Dental Bookkeeping: The Guide to Selecting the Best Dental Bookkeeping Firm

Mixing the two types of transactions makes the bookkeeping process much more difficult. There’s no point in hiring a bookkeeping firm if they don’t communicate with you regularly and make themselves available for support. Ideally, you will hire a firm where you have a single point of contact with someone familiar with your accounts, who can help you if there’s a problem. I don’t need a consultant.” But the fact is, even dentists in private practice can benefit from the services of a dental practice consultant. The terms “credit” and “debit” are difficult for many people unfamiliar with accounting to understand. This is an important concept to understand, even in the age of computers.

Most firms don’t list flat fees on their websites, so you’ll need to have a conversation about that in particular. The most important thing we can do as a dental bookkeeping business is to organize and prepare your financial information for your tax return each year. However, we here at Dental Bookkeeping will compile and organize this information each month to keep it as stress-free as possible, allowing you to make better decisions for your practice. Reconciliations are important because they can help your dental practice identify overdraft transactions and fraudulent financial activity. Whether you manually enter transactions or import them from the bank account, you will need to enter/accept transactions in QuickBooks to officially record them. But whatever you do, it needs to be for all of the business bank and credit card accounts through the current date or at least the last day of last month.

Who is the largest manufacturers of Dental Software Management Market worldwide?

We chose Dropbox because it’s HIPAA safe and easy for clients and their CPA’s to access so you will see me referring to Dropbox. But there are other storage options you can choose from obviously. I am a  firm believer that anyone can learn the bookkeeping process;  with enough studying and enough practice you’ll be on your way to becoming a bookkeeping, Guru. However, the area in which I see most business owners struggle is allocating enough time in doing their bookkeeping. Even though dentistry is your focus, running a dental practice comes with extra responsibilities that take time away from patient care.

Report moreover done a pestel evaluation within the business enterprise to study key influencers and boundaries to entry. Based on Product Types the Market is categorized into Below types that held the largest Dental Software Management market share In 2022. The report focuses on the Dental Software Management market size, segment size (mainly covering product type, application, and geography), competitor landscape, recent status, and development trends.

YOY (Year-Over-Year): Why Should You Care?

For example, one important rule in our bookkeeping process, (but so rarely followed by almost every practice that comes to us) is each and every transaction in QuickBooks needs a vendor name. It’s super easy to miss because of the way QuickBooks imports the transactions from the bank without the names in the vendor column but has it in the memo. Let me know if you’d like me to explain the importance of this and how to do it in more detail, but this is a good example of what you have to remember to do before you start doing anything. Going back and adding names to all of the transactions after they have been added would be a very time consuming mess.

• If for whatever reason that number does not exactly match, that means that there is something wrong with the transactions that you’ve categorized.
• Without our dental bookkeeping checklist, I’m not sure how we would function.
• As mentioned earlier, the main purpose of bookkeeping is to reconcile financial information and make informed decisions based on those results.
• Keep in mind that testimonials are usually solicited, and no firm will share a testimonial that isn’t positive.

Yet, you would not want to accuse every hard-working, loyal employee of embezzling. The only solution is to catch them early by being involved in the daily accounting. You do not have to make the entries, but you do need to check them. Always keep in mind that you are at risk of being taken advantage of by an embezzler so you accounting firm accounting companies will pay attention to the money that comes into and goes out of your office. I had been using old school Quickbooks Desktop for years and doing my own books. As Sona can attest, I had things placed in incorrect categories, was several months behind in balancing my statements, and just really had no idea of my profitability.

Use A Cloud-Based Accounting Software

HIPAA compliance should be a primary concern when hiring anybody who will have access to your financial and patient records. A local bookkeeper can come into your office if you prefer or access your accounts remotely. You’ll have the option to meet them in person and visit their offices if necessary. If they respond professionally and encourage reviewers to contact them for one-on-one assistance, then it’s a good sign that they respect their clients and will respect you. If they don’t respond at all or respond defensively, you should look elsewhere to find the bookkeeping help you need. There are several ways to validate the reputation of the firms you consider hiring.

In 2021, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon. Is using a security service for protection against online attacks. In addition to asking about security measures, we recommend asking specifically about HIPAA compliance. You should ask if the firm has ever experienced a data breach or been charged with a HIPAA violation. Their answer should include a plan to contact clients immediately and notify them of the breach.

Download these documents and save with bookkeeping records

It might also impact your ability to get approved for financing or find investors. Potential lenders want to see clean and precise financial data when they’re deciding to approve your business for credit. It’s confusing and time-consuming to try and remember which purchases or deposits belong to the business.

Making Percentology’s bookkeeping team part of our daily systems has multiplied our efforts. They run things like a well-oiled machine, which is exactly what you want to build a profitable practice. A large part of the magic in Percentology’s bookkeeping service is how we do the bookkeeping special for comparing dental practice overhead with dental benchmarks. We have our own technology that compares your overhead percentages against the averages of our clients. We streamline the bookkeeping process so that you can focus on more important things while your numbers are just magically done without your involvement.

We often help with catch-up bookkeeping work when onboarding a new client. Finally, keep track of any cash purchases made by both yourself and employees within your business, as these may result in potential tax implications if not accounted for correctly. It’s essential to track deductions throughout the year so that when taxes come due, you’re prepared with enough cash to pay them without causing further debt. By keeping track of purchases from vendors, sales to customers, and employee wages paid out, you can easily monitor the cash flow within your business. Auditing your bookkeeping can reveal whether you have seen an increase in office visits and new patients, allowing you to gain insights into the success and growth of your business.

If there is unbilled project work that has been complete, we will invoice you the remainder of the fee. Likewise, if there is a credit on your account, we will refund you the fee. Minimize your tax liability and maximize financial stability with a well-devised plan. A well-thought-out tax plan helps you stay financially secure in the long run.