Today is the official opening of your dental clinic.
Everything is in tip-top shape and you can’t wait to start fixing teeth.
You must have dreamt of owning your clinic for years and now you made it happen!
But you know what else is about to happen? Taxes!
Of course, you will not be managing your accounts on your own. That’s what bookkeepers are for. So how can you make sure your bookkeeping goes as smoothly as possible?
Check out these few tips that’ll surely help you.
1.Choose the Right Software
No more papers and ancient methods of keeping your accounts in check. This is the 21st century and that means there's software for practically everything. That being said, choosing the right one for you can be tough.
Just to give you an idea, Xero, Wave, Zohobooks, and Quickbooks are some of the top 10 accounting software in Canada and the US. Whichever software you go for, you’ll be able to see your reports, manage your budget and keep your finances up-to-date.
2.Don’t Mix Personal with Business
Perhaps you just bought a few plants to decorate the waiting room or maybe you installed the latest TV in your office. That’s nice and all, but you have to make sure you keep these personal expenses separate from your business expenses.
Keeping your personal and business records separately will also help you have a clear picture of what is going on in your business.
You don’t want to face the auditor’s wrath when filing your taxes now, do you? Keeping your personal and business records separately will also help you have a clear picture of what is going on in your business.
3.Reconcile Your Accounts
No matter how trustworthy your bookkeeper or assistant may be, if they have access to your accounting software then it’s important to reconcile your accounts. Account reconciliation means keeping your bank statements and transactions in your accounting software in check.
Money likes counting, especially if it is your money. To avoid any financial discrepancies and embezzlement, make sure to reconcile your accounts monthly.
4.Focus on Financial Reports
How can you determine the overall health of your business?
Through examining your financial reports!
There are three main reports you should consider:
a) Balance Sheet: It determines what your business owes and owns. It lists your assets, liabilities, and owner’s equity. The accounting principle clearly states that liabilities + owner’s equity= assets.
b) Cash Flow Statement: It displays your financial trajectory. How much money is being generated and where it’s heading daily.
c) Profit and Loss Statement: This is self-explanatory, but keeping tabs on your overall profits and losses lets you see how well you’re doing in the market. You might need to make several improvements in your business plan or update your utilities for example.
5. Make Sure Your Hire the Professionals
As you can see, bookkeeping is not about just counting incoming and outgoing money flows. It’s about keeping track of all the financial transactions that happen in your business, be those with your vendors, your customers, or your shareholders.
Choosing the right bookkeeping firm marks the time to streamline your business as you get professional help with bookkeeping for dental offices!
Try to find a reputable company that understands the competitive nature of today’s dental industry. For that reason, that company would be able to provide top-notch accounting services that are customized, modern, and coherent.