You may have many patients seeking dental services. You may be seeing the money flowing into your business accounts. But that doesn’t mean your business is financially healthy. You need to let a professional look through your books to understand what is going on underneath the surface. For that reason, you need to think about hiring accountancy services that specifically cater to dentists. Here is how it can help protect your practice:
1. Your accountant can help you spot cases of embezzlement
Your dental practice is more vulnerable to fraud than you think. According to a 2016 ACFE Global Fraud Study, internal audits were responsible for only 12% of fraud detection in small organisations. So, if you think you are in a position to determine any cases of embezzlement in your business, think again.
As a dentist, you will spend most of your time working. Someone else will be in charge of your accounts. That person in charge probably knows more about your business finances than you do. And that makes it quite easy for a dishonest employee to rob you. The money may be taken in small amounts over a long time.
You may also end up with several employees working together to embezzle money from your dental practice. By the time you realise something is wrong, it may be too late. And you may have large debts you unknowingly incurred.
As such, you need to outsource accountancy services. It will ensure the right kind of professional gets to look over your business books with a fine-tooth comb. Since these accountants are not in-house employees, you can trust them to tell you if someone is robbing your business without fear.
2. Your accountant will help you gain more time to work on more patients
According to research, only 50.2% of adults have been able to access an NHS dentist in the past two years. The numbers have hit a 10-year low. This means there are so many patients out there who could do with private dental services.
As a dentist running a growing dental practice, you may be tempted to spend some time looking over your books. But you shouldn’t. Outsourcing accountancy services is a much better option. It enables you to have more time to concentrate on your core business operations, which involve providing dental care to your patients. The more patients you have, the more revenues your practice will generate. Those revenues can be enough to cover the expenses associated with hiring an accountant to put your business finances in order.
3. Your accountant will help improve your cash flow by determining who owes you money
Studies show that 78% of UK SMEs that are owed money are forced to wait for one more month beyond the agreed-on deadline before they can get paid. This kind of delay can be detrimental to your dental practice. Your business may suffer from poor cash flow because you may have more money owed to you than what you owe your suppliers. And yet, you have already provided the required services.
To avoid business failure, you need the help of a professional accountant to determine your debtors. You may find that process to be more complex than you anticipated. Then, you need to invoice or issue reminders to patients and other debtors who owe you money. That task may be easier said than done, especially when you deal with people you know very well. The accountant you outsource, however, would have no problem doing so.
The devil is in the detail. If you fail to pay attention to small issues that crop up when running your business, your finances may suffer in the future. So, it is an excellent idea to outsource accountancy services. This way, you can be free to run other aspects of your business without jeopardising the financial health of your dental practice.
PS Hope this was informational ?!
Stanley
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