How to Use Year-End Numbers for Your Dental Practice
Feb 06, 2014
Now that you have final numbers for 2013, it is a good time to sit down with your CPA to review your practice’s financial standing to prepare for the new year. From your year-end financial statements, you can compare fluctuations in your practice from year-to-year as well as provide a benchmark to compare with industry statistics. These numbers really tell the story of your practice. They tell how you choose to operate your practice, what worked and what did not.
Watch your business by tracking key statistics such as collections, adjustments, new patients and accounts receivable aging.
Looking at your revenue stream, it is a good time to review the insurance providers your practice accepts. Review how quickly they reimburse you, how much extra work do they create and are there other providers that should be considered. Your practice manager’s input may be valuable to help determine which carriers remain.
This would also be a good time to discuss specific issues within the practice, from business procedures to routine office policies and employee problems to potential hiring of additional staff.
Other questions you may need to address might be: What changes are anticipated within the practice in the coming year? Are rental or lease agreements expiring? Are you planning any large purchases? Are there any regulatory changes or retirements of key personnel on the horizon? Are there any plans to acquire another practice or potentially sell the practice? Envision what success looks like in 2014 and set goals and a develop a plan how to achieve them.
Categories: Healthcare & Dentistry