Keeping the Money Flowing: Managing Smooth Transactions in Your Dental Office
As a Dental Manager, I know a key part of my role is to ensure the smooth and accurate handling of all the financial transactions within my office—it is not just about making teeth sparkle. Messing up the money flow is bad; it’s like having a busted water line, and it’ll drain your pockets faster than a sugar rush fades.
Effectively managing the flow of money, both incoming and outgoing, requires organized systems, clear processes, and a commitment to accuracy.
Transparent Patient Billing
The financial interaction with patients is often the first and last point of contact.
Here at our office, first point of contact, the phone, we like to clearly explain treatment cost, how it works with the insurance, and our forms of payments, being able to offer various payment methods such as credit/debit card, cash, and patient financing.
Being upfront, I believe, is essential for building trust and ensuring timely payments. No hidden costs.
When patients are ready to spend money on treatment, you have to be smooth operators. Explaining treatment fees shouldn’t sound like hieroglyphics. Break it down for them so they know exactly what they’re spending their money on, making it easier for them to spend their hard-earned money with you.
Here, we do NOT do chasing after late payments or any kind of payments, we get the money before any treatment is started.
Smart Expense Management
But it is not just about the money coming in; it’s also about what’s going out. Besides patients’ transactions, managing the practice’s operational expenses is crucial. This includes processing invoices from suppliers, managing payroll, and handling other business-related payments.
Establish a system for tracking all expenditures, ensuring proper documentation and approval processes. This can help identify potential cost-saving opportunities and ensure the practice operates within its budget.
We like to treat supply invoices like parking tickets here, and handle them right away. Keep track of every dime you spend, from our fancy drills, down to the little cups for rinsing.
Dealing with Payroll
This is one of the most important parts. That’s where you have to be extra careful, no jokes aside. Keeping track of everyone’s hours like a hawk in the sky. Handling those IRAs, taxes, PTO’s, holiday pay, and deductions properly.
Using a good payroll system is important, so you’re not messing with folk’s hard earned cash. Happy team equals happy office which equals happy bank account.
Finally, regular financial reporting and analysis are essential for making informed business decisions. Generating monthly and quarterly financial statements, including income statements, balance sheets, and cash flow statements, contributes to the financial stability and success of our dental practice.
Keeping Your Practice’s Finances in Tune
Bottom line of all this?
I like to treat office finances like my favorite playlist—you’ve got to keep the flow smooth and steady. Know how much you’re making, where your money is at, and where it’s going.
Managing the money right, is very important so that your dental practice will be flossing for years to come.
About the Author
Nancy Ford, MAADOM
I am a dedicated dental professional with a passion for helping people achieve healthy, beautiful smiles. With over 15 years of experience, I have honed my skills in both the clinical and administrative aspects of dentistry, from assisting a dentist to managing the day-to-day operations of a dental practice, The Philadelphia Dentist.
My commitment lies in providing exceptional patient care and ensuring a smooth and efficient experience for every individual.
