Running a successful dental practice is as tough as becoming a dentist itself. To become a dentist, one must go through a long and strenuous process that requires hard work, determination, and study. All this hard work does not stop once a person graduates, and if someone desires to run his/her dental firm successfully, then the same amount of hard work is needed.
After working many years with the dentist and dental practices, I realized that their bookkeeping and accounting department is not working correctly. They are losing a lot of money for not doing work properly; here are few points that will help them manage their back accounting office smoothly.
Some steps help to streamline the Backoffice and save money.
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- Cloud Drive – Setup on Dropbox/one drive or google drive to store files.
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- Create a filing system on the cloud –Â Create different folders to store various documents so whenever required, you can retrieve and use them. All the papers are essential; you might have to submit them to CRA for up to 7 years.
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- Accounting Software – Setup accounting software to record day-to-day accounting tasks; you have to be careful while choosing the accounting software. You should be able to import raw data from banks and credit card companies. You should be able to import other transactions to the software. If you have multiple business locations, you need to review the entire business, so choosing accounting software could be tricky; most of the standard accounting software in the market has multiple company operation facilities. You have to treat your subsidiaries as a different company. So invest money in the reliable ERP system.
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- Accounts payable management- Create a separate folder for accounts payable, and you can create a separate folder for each supplier, store all invoices and payment receipts in the folders.
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- Multiple Locations– if your account department is doing various locations, then plan or fixed a day to collect all information and process transactions on the same day. In this scenario, you have to be careful to design a chart of accounts, and it should do properly. COA is important for consolidated financial reports.
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- Payment to Supplies– Always write a cheque or pay by credit card bi-weekly or weekly basis, do not write cheques daily. It will decrease productivity.
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- Auto Capturing bills– To avoid errors in AP management, you can link any other companies to capture invoices and enter the system; it will reduce the error and save a lot of time for your accounting staff. These systems store your invoices and receipts for 7-10 years.
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- Payroll Management – Connect with world-class payroll processing companies to run your payroll. It will help you minimize your work, and you do not have to worry about remittances and year-end reports.
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- My business account – Always try to make everything online and monitor the CRA account monthly to avoid fines and penalties.
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- Controller review– Hire the person who knows the business to review your entire system on a monthly, quarterly basis, so if there is anything not on track, he can guide you to fix them. It will streamline your year-end process so you can do your closing on time and would be able to file taxes before the deadline.
