Is your central focus on profit at your dental practice? You may be looking the wrong way. Shift your attention to cash flow and you can turn the financial tables.
A remarkable $23 million moves through the average U.S. dental practice over the course of 30 years. Even with all those dollars and cents flowing through your bank account, you may still find yourself struggling to pay the bills some months due to patients who are slow to pay or who don’t pay at all. Here are some helpful suggestions to set your business on the right path.
Know The Numbers
Don’t count on administrative or billing staff to bear all of the financial burden in your office. As the owner, it’s essential that you thoroughly review your cash-flow statements so you can begin to predict cash flow over the next few months. When you’re able to predict your income and expenses, you’re more prepared to deal with possible shortfalls.
Set Ground Rules
Create clear policies and enforce them. Patients expect well-run companies to have payment policies and will not hesitate to sign onto this type of agreement. Make your payment expectations clear and then follow through consistently when patients don’t adhere to the rules. Let patients know soon after a bill is past due and explain any extra fees or penalties that may result if not paid timely.
Consider New Options
Times have changed. It’s important to remember today’s patients prefer to use credit and debit cards. Set up an online payment portal on your website so that patients can pay online immediately when they receive their bill. While you may take on some credit card fees with this option, many dentists find the benefits well outweigh the cost.
Looking for help along the way? Contact us at American National Bank. We have seasoned small business professionals on staff to walk you through your options and keep your practice in the green.