How can a Dentist Manage Money and Boost Up Dental Practice Revenues?
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Introduction: Having a successful career in dentistry does not depend only on your dental skills. Success in dentistry is an amalgamation of many factors. One of the most important factors that have a massive impact on the success or failure of any dental practice is
” How the dentist manages the money? “
You might be the best dentist in your town. But, if you don’t know how to manage your money in the correct way, you will never be able to sustain a stable, financially profitable practice that grows year after year.
For this article, we took inputs from many dentists who have been practicing for at least a decade.
From their inputs, we have prepared a list of
10 ways for dentists to manage their money.
(The ultimate financial Dental Practice Management)
Points covered in this article:
Ways For Dentists to Manage Their Money and
Increase their Earnings
- Keep a track of all the incoming & outgoing finances of your dental practice.
- Be very wise and calculative in personal spending.
- Understand your personal spendings and make peace with your spending power.
- Keep a careful watch on debts, salaries, and investments related to your practice.
- Secure the safety of your practice and family by insurances.
- Make an investment plan & invest wisely in raising your revenues.
- Control the overhead cost of your dental practice.
- Plan for your retirement.
- Start using Dental Practice Management Software.
- Take help from professionals/Hire experts to assess your finance.
Conclusion: The takeaway points.
At the end of the article, we have designed a very nice infographic to show you the 10 tips for saving money. You will need to reach the slide of the article to see the amazing infographic designed by a dentist/designer.
1. Keep a track of the Incoming &
Outgoing Financial Metrics of your Dental Practice
Running a dental practice has many types of financial aspects that run simultaneously. It’s very easy to get confused managing so many financial factors. But the success of a dentist depends on this. So, how does a dentist keep a track of so many financial matters? It is possible by simplifying the tasks.
Finances of a dental practice can be tracked in the following ways:
- One time expenditures: One time expenses while starting or upgrading your dental practice, for example, buying a dental chair or a new laser unit or forceps.
- Fixed monthly/yearly expenses: Monthly recurring fixed expenses, for example, clinic space rent, loan interests, equipment EMI payments, insurances etc.
- Variable monthly expenses: Monthly recurring but variable expenses, for example, dental material cost, lab bills, electricity bills, internet bills, etc.
- Patient acquiring cost: Expenses on the promotion of your dental practice. In the modern day practice management, it is an essential part of success. We have discussed this in one our previous articles before. See here: Types of promotion & patient acquiring.
- Patient acceptance rate: You might have the best dental clinic or equipment. But if you are not able to convince the patient for dental treatment, then what is the use? So, keep a close watch on the patient inflow and acceptance rate. For a dental practice to be financially successful the patient acceptance rate has to be more than 60%.
- The number of new patients: One of the most critical parameter to judge the growth of your dental practice. Maintaining contacts with old patients is necessary but your dental practice can show growth only when there is a regular flow of new patients.
- Prices of the Dental Treatments: Keep a watch on the prices that you quote on your dental treatments. never undervalue yourself but at the same time decide on the pricing considering the demography that you reside in.
- Pending payments: Many dentists tend to neglect this in their efforts to retain patients or gain new patients. In your monthly assessment if you find multiple payments from patients that are still pending, then it’s time to send them a reminder to clear the pending dues. Do not be afraid that by doing so you are going to irritate the patient. If you don’t take action then your practice money is on the line.
- Equipment maintenance cost: A dental practice has a lot of equipment that needs regular maintenance. A dentist needs to keep a watch on the warranty and regular maintenance. All of this leads to proper management of money.
Keeping a track of the incoming finance & outgoing expenditure is one of the most successful tricks for dental practice management.