Did you know that there are over 180,000 dental practices in the United States? Dentists need to work hard to remain competitive in the market. While the focus should always remain on providing top-notch dental services and safeguarding patients’ oral health, sound financial management is crucial. Let’s look at some must-know financial tips for dentists and dental practice managers.
Consider Your Patient’s Finances
Just like dentists and dental practices, patients have budgets. It’s wise to keep the costs of your products and services in mind. Ideally, you’ll offer top-notch care at an affordable price. Some technologies and methods can keep costs lower.
Some invisible aligner solutions will be more affordable for patients than traditional braces, for example. Likewise, in some circumstances, traditional braces may be more affordable. It’s good to offer a variety of different services at various price points. This way you can appeal to more customers.
Use Full Arch Dental Milling
Full arch dental milling can be more affordable than other solutions while also providing the highest quality outcomes. We focus only on crafting world-class zirconia prostheses. As a result, we are able to deliver superior economies of scale than many dental practices that try to handle production on their own.
You can pass the savings onto your customers, offering them more affordable and effective solutions than many of your competitors. Further, you can free up you and your staff’s time by outsourcing the design and production of prosthodontics. This way you can focus on other high-value activities, like improving your patients’ oral health.
Invest in Advertising
As the saying goes, to make money you have to spend money. While you want to avoid shelling out excessive amounts of money on advertising, a sound marketing approach can draw in patients and thus revenues. In the long run, the right digital marketing tactics and other advertising methods can not only pay for themselves but also expand your revenues.
In the past, advertising was often the realm of large practices that could afford to run traditional TV ads, put up billboards, and otherwise leverage pricy marketing channels. Now, small practices can use social media, search engine ads, and other channels that are more affordable and practical for small businesses and dental practices.
Set Up a Clear, Easy-to-Understand Payment Policy
It’s wise to set expectations with patients upfront. You should craft a simple-to-understand payment policy that covers things like late payment fees, financing options, when payment is due, and all the rest. A clear policy will reduce misunderstandings and can pave the way for higher collection rates.
Accept Multiple Types of Payments
Generally speaking, the more types of payments you accept, the better. It’s now relatively easy for dental practices to accept credit and debit card payments, for example. You can quickly and easily set up Point-of-Sale systems that make accepting a wide variety of payments easy. Make sure you pay attention to payment processing fees with various systems and payment types, however.
Use the Right Software Solutions
The right payment management platforms and bookkeeping software can make it easier to track invoices, monitor cashflows, and otherwise manage your finances. Software for managing appointments, patient inquiries, and other aspects of your dental practice can also increase efficiency, which can bolster your bottom line. You can also set up systems to send patients reminders to make payments, which could increase your collection rate.
Pay Taxes on Time
If you don’t pay taxes on time, you may end up paying penalty fees. It’s wise for dental practices to set aside the necessary money to pay taxes. This way, you can avoid trouble with the Internal Revenue Service (IRS). If you put off doing or paying your taxes, it can create a lot of headaches later on.
Make Sure Staff Are Well Trained
Your staff members, and especially those folks who handle payments, should be well-trained on your policies and things to watch for, like late payments. You can also train your staff on the importance of finances for your dental practice. Finding ways to cut waste, for example, can save you a lot of money in the long run.
Ultimately, running a dental practice requires a team effort. As such, you want to make sure you have the best team possible in place.