Just as with any kind of business, the temptation for dental practice owners to adopt a DIY approach to bookkeeping in an attempt to save money, is always there. However, with such important financial data at stake, this approach is a risky one, and when things go wrong (as they invariably do), dental practices are putting their very reputation on the line.
Here are 5 compelling ways in which professional dental bookkeeping can be of benefit to modern dental practices:
1. Financial recordkeeping that’s HIPAA compliant
Because they’re just as sensitive as patient health records, insurance claims, billing statements and payment data should always be handled appropriately to avoid exposing Protected Health Information (PHI), and putting your dental practice at risk of violating the HIPAA act.
With safeguards put in place by a qualified bookkeeper, such as using accounting software that’s HIPAA-compliant, setting up access controls, and keeping a robust audit trail, you can ensure that all financial data is handled appropriately, and most importantly, securely.
2. Insurance reimbursements and patient payments that are streamlined
It’s easy for revenue to slip through the cracks and leave you with a shortage of cashflow, without a system having been put in place to track every claim and follow up on every patient balance.
With help from a dental bookkeeper, you can ensure that all insurance claims are accurately submitted, late payments are followed up on, and unpaid patient balances are properly reconciled.
3. Cost-sharing arrangements with no tax drawbacks
With it being common for multiple dentists to share office space and expenses, even when working for different businesses, these scenarios can create unintentional tax liabilities and issues with tax compliance.
Having a bookkeeper to oversee cost-sharing agreements and make sure that they’re properly structured, can help stop tax misclassification, avoid unwanted attention from the IRS, and keep both parties financial responsibilities clear.
4. Maximized tax deductions
With CE courses, high-tech equipment, and professional memberships among several others, dental practices can access a range of tax deductions that other businesses cannot. But by not accurately tracking expenses or misclassifying them, thousands of dollars are being missed out on by dentists every year.
Help from a bookkeeper specializing in dental practices will ensure that no deduction is ever missed, through the tracking of all deductible expenses in real time, correct categorization of costs, and making all records audit-ready.
5. Clarity of finances for growth and scalability
For dental practices wishing to expand, secure financing, or decide when to invest in new technology, the absence of clear financial data can make it much harder to plan for these things.
A dental bookkeeper will work to deliver financial reports that are properly structured, giving a clearer picture of the financial standing of the practice, without which, knowing when to cut costs, scale sustainably and reinvest in the business, would be made much more difficult. This is also important in terms of presenting investors with financials or applying for a loan.
Lastly, outsourcing dental bookkeeping in Miami can give dental practitioners the freedom to focus on the treatment of their patients without the constant worry of record-keeping, HIPAA compliance, accounts reconciliation, insurance reimbursements and tax filing. With these important but time consuming tasks ably taken care of by a professional dental bookkeeper, dentists can confidently treat their patients, and work on building up their practice.
