4 Common Bookkeeping Errors That can be Costly for your Dental Practice

When you open a dental practice, the main thing that you want to do is get to help your patients. However, if you decide to open your practice, this means taking on the responsibilities of managing a business. This is a lot of work, especially when it comes to also work as a dentist. One of the toughest aspects of managing a business is handling bookkeeping.

That’s why we have compiled 4 common bookkeeping mistakes that can be costly to your dental practice.

Having Improper Record Keeping

Record keeping is hard and that’s why so many small businesses tend to have improper receipts and record keeping. It’s easy to lose track of receipts, especially when it comes to small expenses that seem to be insignificant. While it is easy to forget to log these expenses, these costs will add up. This means that small expenses can lead to big costs down the line. This will give headaches that are going to make running a business even harder. Maintaining accurate receipts and records will help save both money and time in so many ways, especially when it comes to tax season. Proper record keeping will also make it easier to find exactly what you need when you need it, so you don’t have to go searching for an exact receipt.

It is also very important that you keep track of your business receipts, so that you know about all your expenses

Mixing Together Business And Personal Spending

While it might be tempting in the short term to mix together personal spending and business spending, especially on smaller purchases, this habit can get very messy, very quickly. This is why you should always try to keep your business and personal spending separate. The easiest way to start doing this is by setting up a bank account for your dental practice. This way even if you need to spend some personal funds, you can at least have them put through a business account that will track them as business spending.

Not Paying Yourself A Salary

When first starting your own practice you might be under the impression that you don’t need to give yourself a salary, as you are the owner of the practice and are handling the expenses.

However, treating the money that you give to yourself as a salary rather than an expense will save you money in the long term by showing a more realistic amount of money that you need to pay income tax on.

Not Getting A CPA

One of the biggest mistakes that you can make when it comes to bookkeeping for your dental practice is not getting in touch with a CPA. If you are a dentist and running your own dental practice, you are definitely capable, but with so much to do you might not have the time to put into your businesses finances that are required. Having a CPA on your team will be a massive asset to your business. From helping the business grow in general due to their expertise to more specific benefits like assisting with end-of-year taxes, knowing how to maximize your dental practices tax deductions and much, much more.