Running your own business is never an easy task, and running your own dental practice comes with its own unique challenges. A great amount of time and effort goes into making sure you make the best choices for your practice, and not every choice works on the first try. One common mistake among those who run the finances in a dental practice is the assumption that bookkeeping and accounting are one and the same. The truth is that they are two distinct processes that will both benefit your practice if you understand them and can implement them properly.
What are the differences between what a dental bookkeeper does and what a dental accountant does? In order to help you help you make good fiscal decisions for your practice in San Diego, keep these points in mind:
Purpose of a Dental Bookkeeper
In order to make sure that your practice is spending its money appropriately, a good dental bookkeeping service is valuable beyond measure. The skills and tasks unique to their position will help to keep your practice in good fiscal health. The main goal of a bookkeeper is to record and analyze daily transactions. The key items they’re looking for are inaccuracies and oversights in the hope that they never occur.
Bookkeepers have several common tasks:
- Recording transactions
- Creating invoices
- Posting credits and debits
- Maintaining ledges & keeping them balanced
- Managing payroll
Each individual bookkeeper will go about these tasks in their own way that works for them and their specific clients. Larger practices in big cities like San Diego will require different methods than a small town family practice. Your dental bookkeeping service will not only record your data but learn from it and develop some insights as to how to keep your practice running efficiently.
Purpose of a Dental Accountant
While it’s important to have a talented bookkeeper on staff, it’s also important to a practice manager to have a talented dental accountant on their side. Bookkeeping considers the day to day finances of the practice, while a dental accounting service looks at the bigger picture. They take information and insights to create long-term strategies to not only keep your practice healthy but to help it grow and thrive.
A dental accountant will do these things for you:
- Consult with you on financial decisions
- Analyze operations costs
- Prepare financial statements
- Prepare tax forms
Your dental accountant will help you see financial trends that show what you need for the future and how far you’ve come. They also recommend financial decisions and do a lot of the paperwork of taxes and business expenses.
What is Best for Your Practice?
In order to best serve your practice and its needs, the best choice is to have both a bookkeeper and an accountant to work in tandem for the greatest financial benefit. Hiring both in San Diego will cost you, but the value added to your financial future is immeasurable.