What is Practice Accounting?
The monthly process of maintaining your practice books is the most essential service our firm provides. As you probably know, your business financial information is required by the IRS to be organized in order to prepare and file a tax return each year. Practice Accounting
(also referred to as bookkeeping
) is the work that must be done to organize your business revenue, expenses, capital purchases, dispositions, loans, and equity.
This accounting work includes all data entry from your business checking and credit card accounts, coding of all transactions into the appropriate revenue, expense, asset, liability or equity accounts, journal entries to allocate appropriate principal and interest on your loan payments per the amortization schedule, additional journal entries to record intercompany transactions and other adjustments, reconciliations of your bank, credit card, payroll, and loan accounts, and a general ledger review to ensure accuracy.
Our firm performs all of this work and provides a complete outsourced accounting solution so that you do not need to buy any software, hire any bookkeeping staff, or do any of the work yourself on nights or weekends.
As your business advisor, we believe that since your practice bookkeeping is required to be done anyway for tax purposes, you should also benefit from this valuable data each month and use it to make proactive decisions regarding your practice's financial performance.
How does Practice Accounting benefit my practice?
Accurate and up-to-date financial data allows you to see if your business is producing adequate profit. Think about the hard work and money you have invested in your business. Profit is why entrepreneurs undertake this pursuit as business owners, and it is imperative that you are realizing a rewarding return on your business in the form of profit.
Are you satisfied with your current level of income?
Do you wonder if your practice is making as much money as it capable of?
Is your overhead in-line with other dental practices similar to yours?
Does it feel as if your practice is 'leaking money' and you're not sure where it is going?
Having answers to these types of questions is exactly why you benefit from dental-specific monthly accounting where the data is presented in a readable, efficient, and easy-to-follow format.
With proper, dental-specific monthly accounting performed each month,
You will know what is working in your practice and what needs attention
You have a team of dental-specific experts to provide perspective on your practice’s profit performance and potential with robust Advising & Support services
You will enjoy a more proactive approach in having our team manage your Tax Savings & Planning strategies
How does the process work?
With HDA Accounting Group's proven and easy-to-use process, your involvement in keeping your practice's financial records up-to-date and accurate is very minimal.
Every HDA Accounting Group client is assigned a professional accountant and support team who maintains your practice bookkeeping. Our staff have all been highly trained in the field of dental accounting and only work on practices just like yours. While you are seeing patients and managing your practice operations each month, our team will be doing the following:
We track every dollar that moves in and out of your business
We input & code ALL transactions during the month using QuickBooks Online Accountant's Edition which we provide for you
We perform all month-end reconciliations for each of your Balance Sheet accounts
We review our work for consistency and accuracy
We aggregate data from your books to provide benchmarks and comparative data on every report package
We deliver your comprehensive Practice Profitability Analysis each and every month
What we need from your team
Most of our work can be done autonomously during the month so that you are free to focus on your practice. During Onboarding, we ask all new clients to add our team as 'read-only' users to the practice's online business bank and business credit card accounts. This confidential and private access allows us to log in during each month and update your books.
There are only three things we need from our clients, and most can be delegated to your administrative staff (we also provide staff training). These are the items that your team will send to us at the beginning of each month:
1. Monthly Production & Collection summary report from your PMS
2. A/R aging balances as of the end of the month from your PMS
3. Invoices for any equipment orders
We also ask that you or an office manager answer any questions we may have regarding unusual or unclear business transactions.