As the individual in charge of your practice’s financials, you’re well versed in the ins and outs of being a dental accountant or dental bookkeeper. You do your best to keep up with best practices, but a simple internet search makes one thing clear: nothing is clearly agreed upon. In a world full of contradictory information, what kind of choices do you make about what advice to follow and what advice to ignore? While you’re taking everything into account, avoid falling for these five dental accounting myths.
Myth #1: Accounting is Exclusively about Math
Yes, any dental accounting service or dental bookkeeping service will “handle your numbers,” but their job isn’t all about math. While entering numbers and performing mathematical calculations is the foundation of the job of a dental accountant or dental bookkeeper, the full structure of those jobs goes far beyond numbers. Understanding what the numbers indicate, performing an analysis of trends, and helping to plan for the future makes up a majority of the structure of dental accounting. You’ll find many strong analytical minds in San Diego.
Myth #2: Accounting Only Needs Your Attention at Tax Time
Not just untrue, this myth is tremendously dangerous to the health and survival of your practice if you buy into it. Yes, tax time is usually the busiest time of year for bookkeepers and accountants, but it’s not the only time they work. It’s important to stay on top of your financials throughout the year. Not only is this good practice, but it also makes processes much easier when tax time does come around. It is much easier to pay San Diego, the state, and the federal government when your books are already well in order.
Myth #3: Technology Automates All Accounting
Accounting has become much easier as the years have gone by and technology has made accounting easier, but it hasn’t eliminated the need for an actual person to be your dental accountant or dental bookkeeper, at least not yet. Only an actual human brain is still capable of the complex analysis and synthesis needed to keep your dental practice in good financial health while you keep your patients in good dental health.
Myth #4: Never Outsource Accounting
Everyone tries to keep expenses down, and often that means keeping the financials in-house. As counterintuitive as it sounds, this can actually be more costly in the long run than hiring a dental accounting service and a dental bookkeeping service. Trained professionals who deal exclusively in financials can find you great ways to save and make money that you probably wouldn’t come up with on your own. In addition to the tangible savings, the intangible benefit of decreasing stress of your in-house workers will lead to increased productivity and profit. Look around San Diego to see what services might best suit your practice.
Myth #5: You Can Stick With Pen and Paper Accounting
Though we encouraged you above to keep people in your accounting and bookkeeping, it’s equally important to keep technology in the mix as well. We live in a digital world, and not keeping up with the times can leave you left behind. Digital accounting minimizes errors and enhances the portability of financial information, increasing your financial efficiency.