True Payoff In Your Dental Practiceby Dr. Ron Arndt
Sure, you went into practice for yourself because you care for your patients. But, you must be paid fairly for your work – or burnout will occur faster. Operating your dental practice with a poor cash flow and financial scarcity adds to the already stressful life of a dentist.
Each of these has its own relevance and significance. By managing your finances, you have a greater chance of operating your business out of financial abundance – while still enjoying serving your patients.
- Learn the distinction between profitability and cash flows. For example, understand how depreciation and debt principal affect your profit and cash flow. Ask your accountant to explain the difference in straight forward terms.
- Monitor the relationship between expenditures for marketing and promotion with new patient intake. Spend advertising dollars where you get the best results and give you the “biggest bang for your buck.”
- Integrate your practice finances with your total financial game plan. This will enable you to avoid the stress and trauma of spending more than you make.
- Identify “talking points” with your accountant to discuss line item fluctuations and how they impact your business. This creates a dialogue to develop solutions to weak areas in your business and to acknowledge your practice management successes.
Remember: Both your profitability and peace of mind are important.