Accounting vs Bookkeeping at Dental Practices: What Dentists Need To Know About Outsourcing
Home/Bookkeeping / Accounting vs Bookkeeping at Dental Practices: What Dentists Need To Know About Outsourcing
Accounting vs Bookkeeping at Dental Practices: What Dentists Need To Know About Outsourcing
what two types of bookkeeping systems are used in dental practice

Let’s take a look at what makes accounting and bookkeeping different and how each one keeps your finances in order at your dental practice. And while dental bookkeeping and accounting are both essential to running a practice, they are separate tasks each with unique responsibilities involved. This handy tool allows you to make an Accountants Copy for your accountant, who can then make adjustments to your finances, https://www.bookstime.com/ entries for tax purposes, etc. With QuickBooks, you can continue to write checks, create payroll, and run reports without any time delays or having to reenter any information. Another step that is often missed by inexperienced dental bookkeepers would be to reconcile payroll. I can't even tell you the countless payroll mistakes we find practice owners making after we reconcile payroll each month.

Not reviewing your financial situation regularly can leave you with unanswered questions about your business. You’ll still need a base knowledge of bookkeeping or accounting to get started, but most accounting software offers basic educational dental bookkeeping walkthroughs of what to do. Combining business and personal transactions might not seem like a big deal until you have to sort through them. Mixing the two types of transactions makes the bookkeeping process much more difficult.

Manage by Your Bank Statements

Business owners have multiple legal entity options, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. In some industries, all of them are viable, but that’s usually not the case for dentists. While this can be costly, consider treating it as an investment, just like your practice’s equipment.

Even though dentistry is your focus, running a dental practice comes with extra responsibilities that take time away from patient care. One of the biggest and most important of those responsibilities is bookkeeping. Since 2000, Invensis has been catering to the diverse outsourcing needs of clients for multiple industries and constantly striving to add value to clients’ businesses. Tax planning involves strategizing to minimize tax liabilities while remaining within the boundaries of the law. For dental practices, effective tax planning includes identifying deductions, credits, and exemptions that can reduce the overall tax burden. A robust tax planning system ensures that the practice meets all tax requirements, takes advantage of available deductions, and avoids penalties.

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