Are you running your own dentistry practice and finding it hard to turn a profit? Are you sacrificing your own salary for the benefit of the practice or your employees? Or maybe you’re just finding it hard to keep track of the accounting, budget, expenses, and when all else is said and done taking what little is left as your pay?
When it comes to dentistry and dentists who run their own practices in Ottawa, this lack of a ‘profit first system’ is quite common. Being sure that you’re taking care of yourself and your pay first can be backwards thinking to what you’ve been engrained to believe. Especially when it comes to accounting for dentists in Ottawa. We’re taught to think that when there’s some profit, or extra money, after a good month, that we should put it into new equipment, supplies, or sometimes you even want to give your Dental Assistant the much needed raise he or she deserves.
In a profit first approach to your practice, there’s a few things to know before we continue. The way to approach profit first is a simple formula really:
Sales – Profit = Expenses
Essentially, what this means is after a month of work you’re going to pay yourself first. BEFORE anything else, including bills. Where normally, you’d pay your bills and expenses, then look to improve machinery or buy things you need for your practice before paying yourself. With this formula, you always pay yourself first, then you work with what you have left to handle all expenses. This means that you’re forced to find ways to save money. Yes, it can be scary, but you’ll thank yourself in the long run.
Time saved, is Money Earned
The less time you’re focusing on overseeing the books and budgets for your practice, is more time that can be put into growing your practice. Building a solid and consistent patient roster is a stronger investment than those countless hours you’d be doing diving into the financing. Let alone the stress of it all. Working with accountants for dentists like Numetrica City, we put that time in for you, like it’s our job…because it is!
Having a good accounting firm handle the day-to-day of your dentistry practice means that they’re taking care of the budgeting and reporting. They will also help you to be able to properly implement the 10/25 rule needed to move your practice’s accounting into profit first functioning. As well as then properly account for all the accounts needed to run a profit first practice, and keeping track of each of those accounts and the money that is moved into them every month. Which is a perfect lead in to the next reason why hiring an accounting for dentists in Ottawa firm is beneficial.
Deal with CRA so you don’t have to
An accountants for dentists firm for your practice will be able to properly work with all the requirements of the CRA. In doing so, this will keep you in compliance with the CRA and ensures that even your profit first practice and the accounts that you’re using are properly kept track of and every item is accounted for. A firm like ours at Numetrica City can also help when it comes time to file your practice’s business taxes with CRA every year, including showing you ways to save money.
Payroll is a Breeze
For most dental practices, payroll becomes a bi-weekly or monthly full time headache and all-consuming thing. In most cases, you have someone hired to handle both your day to day bookkeeping and also someone else to handle your payroll. When you hire an accounting firm, you’re getting two for the costs of one in most cases. An accounting from can handle all the necessary payroll for your dentistry practice, and do it effortlessly. Leaving you more time to focus on what matters, your patients. Another huge benefit in this area is that all the payroll taxes and accounting for those would be handled by the same people who are filing your CRA taxes and working with managing those areas of your practice. This just helps make your practice run smoothly and can give you ease of mind.
Virtual CFO
When you hire an accounting firm like Numetrica City to handle your accounting needs, you’re getting far more than just someone keeping track of your books. You’re getting a virtual CFO that will handle things like quarterly reports, budgets, profit and loss sheets, and the many different facets of financial management that you would get out of a dedicated CFO. This kind of work allows for you to see the health of your business throughout the year without having to be the one to stress about it. Plus, you’re getting financial guidance and advice to help grow your practice.
If you’re looking to move your dentistry practice into a profit first system, or just have better accounting practices, don’t wait, call Numetrica City today. Our accounting experts are exactly that for dentists in Ottawa… experts at what we do!
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