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Dental Practice Services

For many years, I have been providing services to dental practices. I noticed that most dental practices did not create revenue, cost, profit or cash flow goals, resulting in possible underperformance without realizing it. In response, I have invested resources to expand my ability to help dental practices meet profit and current cash flow goals. Generating current cash flow is also critical to help owners to receive more cash flow in the future when they decide to dispose of their ownership.

Also, I found that many dental associates who want to become owners do not have access to local guidance on how to approach purchasing ownership interest in a dental practice. In response, I have gathered information to help associates understand how to identify and evaluate potential ownership opportunities. This includes helping them to evaluate projected cash flow results assuming they purchase an ownership interest in a practice, given certain assumptions. That cash flow projection is key to their success from owning their own practice. Projecting the cash flow of a practice can help them determine whether the practice can generate the cash flow it needs, and for the provider's take home pay. We can also assess the amount of cushion available to weather unforseen events.

My services to dental offices now include:

  1. Set up or enhance an accounting system with the following goals:

    • Identify ways to make data entry easier, and train staff/owners how to use the new ways.

    • Empower the accounting team how to prove key account balances to identify recording errors. It is important that management receive correct reports when making decisions about their practice.

    • Create useful report formats that owners can understand. Owners and management should be able to identify trends, and take appropriate action to build off favorable trends or to correct unfavorable trends.  I advise the owners of key items they should monitor monthly to benchmarks.  Also, I show them how to see the transactions that comprise any balance that looks unusual.

  2. I provide dental-specific cost and profit targets to achieve profitability, current cash flow goals - and their long-term cash flow goals when they divest of their ownership in their practice.

  3. I work with owners to set up a budget annually to project revenues and costs to generate desired profit and cash flows, given certain assumptions. I also can prepare reports to compare actual results to budgeted results. Using this report, the owner can monitor the practice’s progress towards it profit and cash flow goals during the year. I use a cash flow program to complete these tasks efficiently.

  4. I advise on ways for dental practices and their owners to save taxes before the year ends. Some strategies must be done by year-end. Also, I can project any cash flow they need to plan for current year taxes and next year’s quarterly estimates, so the owner can plan cash flow accordingly without surprises.

  5. I advise on ways dental owners can plan their current and future cash flows. This includes working with the owner’s financial advisors to develop an investment strategy to maximize future cash flow needs. I can also provide objective advice about proposed investment strategies.

  6. I can help owners to see in advance the projected effect of significant events on future profits and cash flows, given certain assumptions. Significant events might include expansion of office space; the purchase of a practice; the improvement in cash flows if the practice improves patient collections; or the effect of lower revenues from accepting managed care plans.

  7. Advise on ways to allocate revenues and expenses among multi-owner dental practices.

  8. Advise on ways to allocate costs among dentists sharing office space.

  9. Long range planning, including the importance of consistently achieving desired profits and cash flows for years before their planned exit date.  This strategy will make a practice more desirable when the owners decide to sell.

  10. Prepare a projection to show current owners and potential successors the effect on profit and cash flows available for doctor compensation, as the Practice admits new owners.

I would be happy to schedule an appointment to see if I can help your Practice in any of these areas.