staff consult you or your office manager prior
to placing dental and office supply orders? Is
there a system in place in your office that monitors
all expenditures? Have you developed a practice
budget and then followed it? In many practices
the answer to these questions is a resounding
"NO". You may be asking yourself "where
has the money gone?" and with good reason.
Practice profitability is directly tied to the
establishment of accounting systems relating to
the control of practice expenditures. The first
step involves setting up a budget. Looking back
at expenditures from prior years is essential
to determining the areas in your practice that
need improvement. Dental consultants and CPA's
can be of assistance in this area. The major guideline
areas for budgeting are as follows:
· Dental and office supplies
and equipment costs
Accounting, Continuing Education, etc. .
The second step involves following the budget.
Your bookkeeper must be trained to spot the areas
which exceed your guidelines and alert you so
that adjustments can be made. Staff must have
all supply orders authorized prior to placing
them. Major facility and equipment expenditures
should be discussed with a CPA prior to purchasing
to determine the profitability of the expenditure.
Budgeting is one of the most effective ways to
grow your practice into a financially healthy
one, to reduce your stress, and to never have
to ask again "Where has the money gone?".