Dental Accounting Tips To Make the Numbers Work For You

Keeping the expenses as low as possible is vital to the success of any enterprise.

It is imperative for dental practices and dentists to use in-depth, accurate techniques for business planning, bookkeeping, accounting and tax planning in today's complicated and challenging business environment.

Adhering to these easy accounting tips will significantly improve the possibility that your practice will thrive.

Tip #1
Introduce strategic measures for cost-cutting. Keeping the expenses as low as possible is vital to the success of any enterprise. Dental practices are constrained on this matter due to the inevitable need to buy expensive dental equipment. Although you cannot do away with buying costly medical equipment, you can significantly reduce the medical costs by employing an astute bookkeeper.

A DIY approach to bookkeeping is not recommended for dentists as it heightens the risk of financial losses due to lost chances to claim deductions and tax credits, preventable calculation mistakes, and embezzlement by employees as well. A bookkeeper is trained to identify these discrepancies, and they can alert you to any dubious activities.

Tip #2
Ensure you are knowledgeable about key financial terms such as the difference between cash flow and profits. While “profit” is the excess cash that remains after all of the practice’s expenses have been met, “cash flow” is the flowing in and out of your practice. A lack of appropriate cash flow can cause a deficit in the operating expenses which are high for a dentist, and the business may not be able to recover from this state. It is critical to garner a basic understanding of accounting and bookkeeping terms to avoid losses due to confusion on financial terminology.

Tip #3
Make use of widely available accounting software to assist you in managing your records. If you choose software accurate for the volume and size of your business, it could significantly enhance your ability to reduce the chances for error, increase efficiency and keep better track of your records. QuickBooks is the optimal software for smaller enterprises.

Tip # 4
Review the finances frequently with professional accountants. You should always stay alert for internal embezzlement. You may not be able to identify the theft singularly. Just as you consult professionals for dental advice, you must engage professionals to audit your practice’s finances regularly. Monitoring your practice’s finances with a dental CPA on a monthly basis can help detect problems immediately reducing the likelihood of future losses.

Benefits of In-house Accounting
The accounting requirements for your practice may be unusual or individualized. In this case, it will be more expensive to outsource the bookkeeping compared to employing your own accountant.

If you employ someone, you can determine the work they perform. Most outsourced services are not as customized which may be disadvantageous for your practice.

Hiring your own private accountant also offers a mostly forgotten attribute-loyalty. Outsourcing your work to an outside accountant means they will have other customers, and will not belong exclusively to your practice. Additionally, you need to consider information privacy issues when hiring an outside accountant.

External accountants may follow standard processes that may vary from yours or these may even be suitable for your enterprise. An in-house accountant can allow you to choose, at least to some extent, the way things operate in your practice.

Benefits of Outsourcing
Outsourcing assists in decreasing the chances of serious mistakes or fraud associated with your practice as the duties are segregated, and strong measures are taken to produce the financial statements for an enterprise. Many outsourcing service providers have at least two reviews of every step and various levels of staff assigned to one account. There are procedures where one employee has to review another's work to eliminate discrepancies.

Sometimes, internal bookkeepers are entrusted with other responsibilities such as human resource management. This is detrimental as it can take time away from their primary responsibility. This situation can cause recording invoices, paying bills and data entry to take precedence over financial reporting and collections.


Through outsourcing your accounting work, you can eliminate instances of inaccurate, meaningless or late financial reporting. The decision to outsource can enable you to decide what is essential for your practice.

Article Source: https://www.dmdtoday.com/news/dental-accounting-tips-to-make-the-numbers-work-for-you

How to Avoid Overpaying for Everyday Business Expenses

Every penny counts to small businesses, so paying too much for the things your business needs just isn't an option. Here are eight ways you can save money on everyday business expenses.

You’re a small business. You probably don’t have the money-is-no-object budget of big businesses when it comes to every day expenses. In fact, you’re probably trying to pinch pennies while providing your employees the tools they need to do their best work. So how do other business owners save money on—well—everything? Here are a few ideas.

Don’t Hire. Contract!

Gone are the days where you have to bring on a part-time “employee.” Employees need an office and/or equipment, you’re on the hook for a portion of their taxes and insurances, and you have to invest a considerable amount into training.

Instead, hire a contractor or freelancer. They’ll require some training but outside of that, all you pay them is the cost of the job. No taxes, no worker’s comp. insurance—just a fair wage for outstanding work.

But be careful. The IRS has very strict rules when hiring a contractor. For the most part, you can’t have any control over their schedule, you can’t act as their manager, and you shouldn’t provide them with any type of company uniform, among others. If you break the rules, they’re an employee. If you’re not sure, use IRS form SS-8 to figure it out.

Cut the Office Supplies

Nobody is saying not to provide paper for the copier but if you’re still following the old playbook of stocking your closets with binder clips, post-it notes, and boxes of pens, there’s probably not a need. Technology has made offices much more paperless. Those to-do lists that were once kept on post-it notes can now be saved on an app. Filing cabinets have been replaced with Dropbox and Google Drive, and there’s no need to print everything out.

You also don’t need swanky, high-end desks. If you have an IKEA close by, head there and buy desks on the cheap.

Teleconference your Meetings

Is it essential that you’re all in the same room to hold a meeting? How about a teleconference? There are plenty of conferencing platforms on the market and some are pretty expensive but if you only have a few people in the meeting, consider Google Hangouts. For meetings of 10 or less, all your people need is an Internet connection. It’s completely free and easy to use.

If you need a more robust platform, platforms like GoToMeeting will cost $50 per month for up to 100 people but that’s still cheaper than flying people to one location.

Speaking of Technology

First, Internet. Depending on your type of business, you may not need business-class service. If you have a lot of employees or they’re doing high-end computing tasks that actually require a robust service, then business-class speed is a necessity. But if you only have a couple of employees and they’re performing basic computing tasks, you can probably get by with a slower speed at a lower price. Don’t buy more than what you need.

Second, no need to upgrade your equipment every time something new comes out. Purchase every other software update instead of each one unless there are large amounts of security updates. No need to buy the newest iGadget either. On the other hand, don’t be cheap. New features and faster, more efficient hardware could be a cost saver. Buy and update, skip an update, buy an update—that makes for a reasonable upgrade cycle.

Don’t be Too Loyal

In business, loyalty to vendors can be a plus but don’t be too loyal. That insurance agent you play golf with might not have the lowest rate. The vendor you’ve done business with for decades may not be the best deal. At least once per year, compare prices and don’t be afraid to do some haggling. Loyalty means giving your current vendors the opportunity to match prices. It doesn’t mean paying more for the same product.

Stop Paying Finance Charges

There’s no way around it—if you’re paying finance charges, late fees, or bank charges, you are throwing away money unnecessarily. If you’re paying annual fees on a credit card, unused gym membership fees, and strange fees from a vendor, it’s time to cut these out. Every business ends up having a bit of money bleed. Audit your books regularly. Ask questions about every charge, regardless of how small it is, and refuse to pay unnecessary fees. You can’t avoid taxes but fees are negotiable.

Advertise Online

Advertising takes a lot of time and research to get right. That doesn’t mean you should pay for a mailing and hope it works. Online advertising gives you more control over the audience that will see your ad and you can spend as little as a few dollars each day if you want to. Carefully measure your advertising efforts and use the platform that converts the most people.

Partner with Other Businesses

Businesses are finding creative ways to cut expenses by sharing. Businesses sometimes rent a large office space and move in together. They can then share Internet service, other utilities, and office equipment. Companies like Uber have made “sharing economy” a household term. There’s no reason your business can’t take advantage of it too.

Bottom Line

Just like at home, a little bit of digging will probably reveal ways to keep more money in your bank accounts. That’s just as important as gaining more customers.


Article Source: https://www.businessknowhow.com/money/bizexpenses.htm

Fixed Asset Management for Small Business

No matter what kind of business you run, you probably own property that helps you provide products and services. Your company's assets are a valuable part of your operations and need to be carefully maintained. Use a fixed asset management system to organize information about your business property.

What are fixed assets?
Fixed assets are the items in your business that typically are not converted to cash. These items can be any of the things listed below but not land. They are used to produce goods or services, can be rented to third parties and for use in your business.

• Buildings
• Equipment
• Furniture
• Vehicles
• Computers
• Land
• Intangible assets

This type of business property has a useful life greater than one year. Inventory is not a part of this category because it is converted it into cash as fast as possible.

What is fixed asset management?

Fixed asset management is a specialized field in which an accountant should be engaged to track them properly. Tracking includes recording the date purchased, the amount paid, the vendor from whom the item was purchased, and most importantly recording depreciation. Depreciation is the method used to record the expense annually. An accounting transaction is used to record an amount to accumulated depreciation and depreciation expense. Without getting into the technical details of accounting, suffice it to say that if the transactions are not recorded properly then there can be a major problem when it comes time to filing your business tax returns.

There is specific software that can be used apart from your accounting program if you want. However, unless that software automatically posts to your accounting module, you will have to make a manual entry which could lead to problems if not recorded properly. Most accounting programs have modules for recording all transactions relating to fixed assets thereby simplifying the procedures.

The importance of fixed asset management

Managing these properties makes it easier when concerns and opportunities arise. There are several ways this technique can help your business succeed:

• As a small business owner, you know that unexpected events happen every day. When something breaks, it's easier to address the issue if you already know what's going on.
• Know the best times to acquire new assets. This system will show you the proper time to take advantage of opportunities to replace or purchase assets.
• Keep up with your tax obligations: When you buy these items, you usually should depreciate them. The IRS does allow for substantial expense write-offs of fixed assets, but keep in mind that you lose any future expense on that amount which can impact your tax returns. Fixed asset management helps you accurately assess depreciation expenses and see an asset's depreciation status.
• Determine the value of your business. Fixed assets add value to the overall worth of your company. At the same time the accurate recording of depreciation expense is also necessary to determine your profit or loss.

This overview is meant to show the importance of the system used for tracking and depreciating these critical business items. You should have adequate knowledge of proper accounting procedures before undertaking this program. Otherwise, how will you know if what you have recorded is accurate?

Article Source: https://ezinearticles.com/?Fixed-Asset-Management-for-Small-Business&id=9842176

Basics of Money Management

Money plays an important part in our every day lives and making the most of what we have will help us live a life free of financial pressures. By learning some basic rules, you can make life easier for yourself and for those who depend on you. Here are my basic rules.

Rule one. Don't borrow money for consumable goods. What are consumable goods? They are stuff that lose value over time. Stuff you want but can live without. Examples are electronics, subscriptions to magazines, auto mobiles etc.

Rule two. Live within your means. In other words, spend less than you make. I know that may sound hard if you are on a tight budget but to just take easy credit when it is available to you is simply inviting financial disaster.

Rule three. Become financially educated. This can only be done by reading all you can about the various investment options available to you. There is really no excuse for not being kept up to date with all of the financial news because there is so much information on financial matters available on and offline.

Rule four. Diversify. A mistake that some investors have made in the past is to put all of their eggs in the one basket only to find that the company they invested their money in went bellyup. Prudent investors diversify. That is spread their money around in various companies to minimize their risk.

Rule five. Keep good company. There are people about who have bad attitudes toward financial planning and money in general and if you spend too much time with these people there attitudes can affect your thinking.

Rule six. Take responsibility for your own finances. Some people will ask others for advice just so that they have someone to blame if things do not work out for them. A financial advisor will tell you to do this or that but at the end of the day it is your money and you are the one who reaps the rewards when the markets are up or takes a hit when they are down.

Rule seven. Take a long-term view of your investments. Investing your savings is a long-term game and in order to take advantage of the gains in the markets you have to take a hit occasionally which means not panicking when the markets are going down.

Rule eight. Keep the big picture in mind. In other words have a target or goal in mind. Are you saving for a house deposit or your retirement?

Article Source: https://ezinearticles.com/?Basics-of-Money-Management&id=9941728

How Can Accounting Contribute in Growth of Your Business?

Accounting is a part of business and so every business should look forward to it. Bookkeeping falls under accounting and maintained by every enterprises. The size of business will determine the complexities involved in accounting processes, but to keep a track of profit and loss it is necessary to maintain accounts. Being updated on the basic accounting principles will definitely help to succeed in the world of business. Through proper record keeping and financial analysis it is convenient for any business to keep an eye on the expenses.

Accounting is not just limited to maintaining the credits and debits, but has other roles to play as well. While making any decisions in business, accounting comes into role and enables the entrepreneur to take the final call.

• Monitoring the accounts would actually help to understand the behavior of customer base and finally cut down the costs
• Accounting is the only way through which you can understand the actual financial position of the company which can influence many decisions

How accounting helps any business

Accounting is a system that keeps track of assets, liabilities and income of business. To make an informed decision in business it is vital to check the past performance and this can only be possible when you maintain proper accounts. Through sound accounting, it is also possible to satisfy customers and know the earnings and expenses of a company which will give a better understanding of how to maintain satisfaction level of customers.

Want to know more? Accounting also allows in proper tracking of profits and losses and manages payroll records. It is the best way to maintain any budget and also attract potential investors.

After collecting the financial information it is stored in accounting records which is finally compiled into financial statements. It includes certain documents like:

• Balance sheet
• Statement of retained earnings
• Income statement
• Cash flow statement

Responsibilities of an accountant

Professional accountants know how to maintain accounts and keep a track of financial transaction. Every business needs an accountant so that proper financial advice can be taken. An accountant is responsible for finding a way out through which a business can easily increase its capital and make wise use of it. An accountant will also help:

• Filling of taxes
• Prepare the VAT returns
• Help in computing tax and national insurance
• Keeps record of sales revenue

The other essential function performed through accounting is cost management. Though it is often overlooked by corporate houses, but certainly there are some advantages associated with cost management are:

1. Understanding the profitability

2. Financial structure of business

Through cost management it is possible to focus on different aspects of business that can finally help in boosting up profits.

The handling of company's accounts depends on the size of business. In case of a public sector, Chief Financial Officer is appointed to manage the job. While a small business hires an external accountant on a part time basis to manage invoices and keep record of financial transactions. A large sized enterprise usually keeps an in-house accountant.


Article Source: https://ezinearticles.com/?How-Can-Accounting-Contribute-in-Growth-of-Your-Business?&id=9874762

Fast and Easy Tips for Hiring a Good Accountant

Looking for fast and easy tips for hiring a good accountant for your business or individual finances? There are many experts that you need in your life to ensure that things run smoothly. From your doctor to your dentist, each professional you hire is there to provide their expertise and solve your problems. In each case, it's important that the staff you select are a good match for your personality and your requirements.

A good accountant is no different. They are worth their weight in gold, ultimately assisting you in maximizing your income and minimizing those taxes. So what are you waiting for? Here are my top tips to ensuring you hire the best accountant for your needs.

Fast and easy tips for hiring a good accountant

Knowing what you want is by far and away the best tip there is. What exactly are you hoping to get from your accountant? Do you need them to prepare your taxes or sort out your financials? Understanding your needs is the first step in sourcing a good accountant.

Ask the right questions

Not every accountant will be the ideal candidate for you. Therefore, prepare a list of questions to get to the bottom of exactly what they are offering to avoid any surprises. Do they provide monthly bookkeeping as well as business taxes? What exactly can you expect to pay for their services?

Get a referral from a personal contact

Like a good hairdresser, finding a professional that 'gets' you can be a challenge. Ask around and see if there is an accountant that somebody near and dear to you recommends. Find out what they like about them. Ask them what services they are given and at what price.

Double check their qualifications and experience

Don't be swayed by the promise of a large check following your tax return submission. Always confirm their qualifications and experience thoroughly. If in doubt, ask them for a reference so you can verify they are as good as they say they are.

Understand what they need from you

Make sure you know what is expected of you up front. Can you do everything that is required from your perspective? Do you need to visit their office and supply them with physical paperwork, or will electronic copies sent through email be suitable? Does the way they operate meet your expectations?

Gauge their availability

Accountants may not be known for their customer service skills, but it is still an important and real aspect of their job. If you don't hear from them for days, perhaps they are not the one for you. You need to know that you can get a hold of them when you need them the most.

Consider whether you need a specialized service

Not everyone has the same accounting requirements, and there are many situations which require a specialist's touch. Ask them specifically whether they have the experience to help you. Do their regular services cover your requirements? Or do you need to pay over and above to get the assistance you need?

Undertaking the legwork before you hire is vital to a successful match. There is no shortcut when it comes to hiring a good accountant, so make sure you do your homework before you sign on the dotted line.


Article Source: https://ezinearticles.com/?Fast-and-Easy-Tips-for-Hiring-a-Good-Accountant&id=9764457

11 Reasons Why Businesses Change Payroll Services

What are the factors that cause business owners to change payroll providers?

Talking with small business owners about what they like about one payroll company over another varies greatly depending on their individual philosophy, experience and core values. Allow me to list just list a few reasons that cause organizations to switch their payroll software and talk about payroll business solutions business owners value. Let’s look at a few key factors that a big deal to everyone:

Quality Payroll
Price –   Paying $120 payroll processing fee 26 times a year (bi-weekly payroll) when they could be paying $70 per payroll every 2 weeks. After a while, the dollar sign does add up to a significant number and people can be enticed and consider alternative options.

Hidden Fees – Sometimes companies are not so forthcoming with their fee structure during the initial consultation. Sometimes the fine print has some details that you didn’t notice. People become furious that they were being charged fees for processing quarterly state and/or federal tax returns.  Being nickeled and dimed for delivery fees for tax returns and W-2’s does not help. I’ve even seen payroll providers charge significant fees for processing payroll the day before payday. One overlooked cost that makes one provider more expensive than another is the delivery costs for paper checks. Seeing additional fees on an invoice is a not so savory surprise and a good reason to change payroll providers.

Good Service determines Loyalty
Customer Service – Some payroll companies have excellent customer service and other companies may not be so great. If your payroll software company relies on a call center for customer support, be wary. Sometimes it takes 15,20, 30 and event 45 minutes (worst case) to get in contact with a customer services representative. That’s not good when you need something done immediately regarding payroll amid other priorities. Running a business is stressful and I’ve seen people change providers because they can’t afford to be on hold for extended periods of time. You expect excellent service when you need it the most. When you need help, you need a human on the phone right away.

Errors – I’ll say that every payroll company at some point will not have 100% fidelity. Considering the human element involved with payroll, the best of companies will make an error eventually somewhere in their client base. Payroll errors should be corrected within 24 hours or less to minimize inconvenience or interruption. Responsiveness is important. If you are not quick to solve a problem, likely people will go to someone who can. The frequency of errors is a big deal. If a company exhibits a pattern of mistakes and they occur often enough to irritate the accounting department, the door is wide open for a change.

Integrated Payroll & HR Software
Workers Comp Integration – The ability to pay your insurance through payroll software is a great perk. Insurance premiums are calculated from the total hours your employees worked per month. If your employees work more hours, your premium for insurance goes up. If your employee’s hours go down, then your premium goes down for that month. At the end of the year, you also don’t have to do any additional work for the insurance audit. You automatically have a report generated that satisfies an audit. Having this ability to save money is a great perk people gravitate toward. Not having to deal with a worker’s comp audit…. Priceless.

QuickBooks Interface – QuickBooks interface occurs uniquely in our software.  Payroll data is automatically transmitted to QuickBooks without any additional work or time required. No need to export the data into QuickBooks, it’s already there! Being able to have this feature saves on time and is an attractive element of our software. It’s something to consider when choosing a company or deciding to stay put where you are.

Additional Service
Handling Unemployment Claims – If the employee files a claim for unemployment benefits in your state, you must agree with the claim or disagree with the claim within a brief period once you are contacted by the state. This can be a pain in the rear, especially when you are not familiar with the employment law, state regulations and HR protocols. Figuring out whether you should grant a claim or fight a claim can be a tough cookie, especially when you don’t have the experience or expertise. Considering the implications, your State unemployment tax rate becomes a bigger deal as the number of employees you have increased. To be able to hand off this task and not have to think about it is a blessing.

Benefits Administration
Lack of Integration – If you cannot pay your health/dental/vision insurance through your payroll software, you will have to do it on your own. People that value their ability to generate revenue/clients will appreciate the extra time to focus on what’s most important. If more integration means more free time, and more time means more money. When companies can save time and earn more money, people make changes.

Go Above & Beyond
Wage Garnishment Service – Is nearly identical to the lack of integration. If an employee owes child support, the business owner who employs him or her is responsible for withholding wages from their earning and remitting them to the appropriate state agency.  Failing to garnish wages is the “Owners responsibility.  The person who owns the business can receive a steep penalty for not properly remitting child support payments. Oh, by the way, wage garnishments can occur because of back taxes owed to the state or federal government. The business owner is still on the hook for that as well.

Dedicated Representative/Call Center – When you call your payroll provider, do you wait for the next available representative? Does a dedicated representative pick up the phone right away? With a call center model, you will likely always talk to a new person with every call and the person will not have a good working knowledge of your business. With a dedicated representative you have direct communication with someone who is familiar with you and your business. l. Most people prefer a dedicated rep over a call center. Especially because they are likely to not make a mistake on your payroll account since they know your business very well

Added Convenience
Check Printing/Direct Deposit – Remember how I talked about errors as a pain point earlier? Well when errors occur, how fast can they be corrected? Not every company can fix an error on the spot like that. Business owners have had problems come up on a Friday and the solution was not available until Monday. Not good! If you can print a check onsite and do same-day payroll, that’s great for the business owner.  Reimbursement on the spot with a paper check is a great perk to have. For a full list of our payroll features. Visit our homepage.

When considering a list of payroll processing companies make sure you conduct a thorough investigation into all of the above mentioned available features,  since every company is created equal. For more helpful information check out our article titled “9 Reasons Why Payroll Outsourcing Costs Businesses Money” for more insight to help you choose the right payroll provider.

Article Source: https://www.articlecity.com/blog/11-reasons-why-businesses-change-payroll-services/