How to manage expenses
To run a successful dental practice, the dentist must effectively handle expenses. Uncontrolled overhead can have a devastating effect on a practice's cash flow. Excessive overhead not only jeopardizes the success of the dental practice but threatens the dentist's financial security as well.
Update your budget. When you don't track your expenses, cash seems to disappear. Dentists who have budgets control their overhead and usually achieve better financial results. The best way to make an accurate budget is to figure out how you spend your money. Evaluate where your money comes from and where it goes. You will need to keep track of your collections, purchases, and expenses. Record how much you spend in each category every month.
Don't forget to take inventory. Do you know your current supply level? When was the last time a staff member took inventory? Many practices find that they have extra supplies that will carry them for months and older, expired items that are taking up valuable space. By taking inventory on a semiannual basis, a practice can maintain a steady stream of supplies, avoid overages and shortages, and exhibit stronger control over expenses.
