The One Piece of Paper Dentists Must Stop Ignoringby Dr. Ron Arndt
Your income statement. (You do have an income statement, don’t you?) If you are the dentist who receives an income statement, and stuffs it in a drawer because you have no idea what to do with it, you are essentially driving a car without a rear view mirror. Not very safe, is it?
Taking a moment to pull out your income statement will help you manage your practice like you would any other successful business – you are, after all, the Dental CEO. When I was studying for my MBA, I learned that managing by the numbers allows you to make better business decisions.
Without the income statement serving as your dashboard — you won’t know which direction you’re going. You won’t know if you’re going right, left or straight… and more importantly, what you will back into.
It’s okay if this overwhelms you, but I won’t let you use that as an excuse to continue to ignore it. Enlist the help of another professional – a CPA or Financial Advisor – to review the statement with you. Don’t be apprehensive about it; this is your key to a successful practice!