Fix Your Finances – 5 Easy Changesby Dr. Ron Arndt
Getting your dental practice finances squared away is not as daunting as you perceive. Take action today by doing these 5 quick changes — and watch profitability soar!
- Evaluate your accounts receivable: Work with your Administrative Coordinator to determine the amount of accounts that are 30, 60 and 90 days past due. Cash flow is the “blood” of your business practice; keep it pumping. Have your Administrative Coordinator call make arrangements for prompt payment.
- Assess your current fees: By keeping your fees current you are able to maintain your profitability and safeguard all your stakeholders. As you improve your clinical abilities and attend continuing education courses, you increase your value. As such, your fees should reflect this.
- Review employee compensation: Tie compensation directly into performance and results. Consider incentive compensation for achieving performance goals.
- Evaluate overhead relative to gross income and production: You can determine what you are doing well and where you must tighten the reins.
- Adjust financial arrangements: Patients will buy more of what you have to offer and what they need. Offer simpler financial arrangements for clients, in writing. Make it an easy choice for patients to work with your dental office.