Financial management is crucial to every business owner. Your finances tell you how well your business is doing, where you need to cut down on costs, and where you shouldn’t. It’s best to know about how your business is faring financially, especially if you’re not managing your accounts by yourself.
Although it’s excellent to outsource your account organization to a professional accountant. With expert knowledge of the dental industry, your finances are safe when managed by a dental associate accountant San Diego. You should also know details about your practice numbers. Several dentists tend to have very little knowledge about the essential accounting specifics of their practices and don’t bother to find out.
Most dental practice owners working with accountants receive their financial reports every month. But how many can understand the reports? Understanding your level of finances and how it is run lets you know how close you are to achieving your financial goals and targets.
One of the core duties of your dental accountant is educating you about aspects of your finance administration, you should know. So, ask yourself, “How much do I know about my finances?” And follow up that question with these 8 important ones about your financial management.
1. What Exactly Do I Understand and What Details Am I Supposed to Understand?
As the practice owner, there are some financial decisions you have to make. With the right dental associate accountant San Diego, you’ll understand these things easier.
2. Do I Get Reports From My Accountant and What Type Do I Get?
Ensure you get simple reports from your accountant monthly. Information about your income, expenses, cash flow, and tax returns is usually on such types of reports. You should know how to interpret those simple reports.
3. How Much Do I Need to Make Monthly to Break-Even and Achieve Profit?
4. Are My Monthly Expenses Within Normal Range In the Industry?
5. How Much Is My Tax Liability?
It’s good to know what to expect concerning the tax responsibilities of your practice. With that knowledge, you’ll not be shocked at the end of the year when you see your tax numbers. Also, knowing your tax liability helps you avoid overpaying your tax.
6. Do I Get New Patients Monthly and How Many? What to do when I’m Not Getting Enough Patients?
7. What are my production targets and goals every month/year? Can I achieve them?
8. Am I Saving Towards Retirement?
It’s never too early to consider retirement. Also, you should know how much goes into your employee benefits package.
As a dental practice owner, managing your business is a process. It involves a lot of planning, organizing, and hard work for your practice to succeed. And you can’t do that without adequate knowledge about your financial state. It’s just like taking a bus on a journey. You may not know when exactly you’ll arrive at your destination, but you should know your goal and how to get there. That’s what information about your financial management gives you.
If you find that you don’t have answers to most of the questions above, then you need to hire a dental associate accountant in San Diego to guide you.