Managing the practice finances
If you've just started, taken over, or are running a dental practice and want to improve your financial management, these insights are for you.
In today’s digital world, handling accounts and taxes can be simplified with online cloud accounting. Cloud software offers flexibility, easy access, and streamlined operations, outperforming traditional methods.
Benefits of Cloud Accounting:
Cloud systems can be used anywhere, from the practice to your home or even on the go. Tasks like invoicing, payment matching, and bank reconciliation are easy on smartphones or tablets. Consult your accountant for the best software and apps for your practice.
Bookkeeping and Compliance:
Don’t overlook bookkeeping when setting up or growing your practice. It’s a vital control. Company accounts must be submitted to Companies House within 9 months of each financial year-end. Sole traders and partnerships pay taxes twice a year. Your accountant can handle these submissions and help with tax planning.
Managing Cash and Costs:
Cash flow is crucial for new practices. Forecast cash movements to manage practice growth. Monitor costs and seek areas to cut expenses. Plan ahead, at least 6 months, for expected income and cash needs. Maintain a safe cash balance to cover short-term commitments.
Measuring Success:
Dentists need to understand business numbers for smart decisions. Monitor NHS income monthly to track practice volume. Look at income to payroll ratio and gross profit %. Measure return on assets and capital invested. Your accountant can review these metrics regularly. Cloud accounting tools automate calculations, helping you monitor key numbers, trends, and business success.
