Running a profitable dental practice today is a demanding task, requiring a high level of business skill and management expertise.
Efficiency is at the heart of a successful practice and would include the following:
1. The maximising of profitability by either reaching NHS targets or fully utilising surgery availability for private clients.
2. Excellent cash flow management which includes collecting debts quickly whilst maximising credit taken from suppliers.
3. Accurate and up to date management accounting information.
4. Having a computerised practice management system.
5. Having quality staff who are properly trained including management skills.
6. Partners who understand the importance and benefit of delegation.
As dental specialists we can provide advice on:
1. Financing of your practice.
2. The purchase or transfer of property.
4. Computerised accounting systems.
5. Tax and accounting implications of the partnership agreement or partnership changes.
6. Business planning.
7. Retirement planning and protection.
8. Tax investigations.
The obvious errors often found in Dentists' accounts
1. The incorrect treatment of surgery ownership.
2. Not including the correct value for debtors particularly NHS monies due.
3. Inaccurate work in progress i.e. unbilled work at the year end.
4. Inadequate creditors especially in the under provision of UDAs and superannuation liabilities.
5. Incorrect treatment of superannuation by passing this figure through the Profit and Loss Account.
6. Not grossing up NHS income for deductions made before receipt.
7. Misanalysis of dentists' drawings.
8. The preparation of a partnership account and partnership tax return when in reality the practice operates an expense sharing arrangement.