Hire Dental Accountants To Avoid The Common Bookkeeping Mistakes
Posted on 23rd April 2022
Cash flow trouble is a nightmare for almost every dentist. They have to deal with severe cash flow problems even due to simple bookkeeping mistakes. Though most dentists specialise in offering various dental treatments, they lack the experience or tools required to undertake accounting tasks. They don’t know the vital steps one has to follow to maintain an accurate bookkeeping system.
It is necessary to get a better picture of the financial health of their dental clinic. They can easily avoid common dental bookkeeping mistakes by hiring specialist dental accountants. With the right professional by their side, avoiding the common bookkeeping mistakes made by dentists will become easy.
Few Common Bookkeeping Mistakes Made By Dental Accountants
Failing To Understand The Difference Between Profit And Cash Flow
Most dentists don’t know how to create and study financial reports. If they ever need the figures for a particular period, there are high chances that they will start treating the profit figures as the cash available. Dental accountants know that profit amount and cash available for purchases are not same. While profit is the revenue left after expenses, cash flow is the amount moving in and out of business throughout the month.
Recording Past Transactions
There are a few situations when the accountant ends up recording transactions in a previous period. It is advisable to close the books every month, including preparing the financial statements and reconciling the different accounts. Once the books are closed for a specific period, you should not enter any new transactions or make changes in the existing ones. The financial reports and bank balance might not match if you accidentally end up entering transactions from a previous period.
Failing To Follow The Industry Standard Account Chart
The chart of accounts is very important as specialist dental accountants use it to track the money received or spent and prepare financial reports for the dentist. It is necessary to set up and track the accounting system according to dental industry standards. Dentists often fail to use the general chart of accounts or create a wrong chart. As a result, there are mistakes in the financial reports prepared.
If you want to avoid the common bookkeeping mistakes stated above, get in touch with the experienced dental accountants at BGS Accounting.
This content will only be shown when viewing the full post. Click on this text to edit it.
Tagged as: Specialist dental accountants, Specialist dental accountants in Leicester, Specialist dental accountants in UK
Share this post: