Accounting is an important part of a dentist’s practice but can take up valuable time and resources. Many Australian dentists are now outsourcing their accounting needs to help improve efficiency and cost-effectiveness. Outsourcing helps dentists free up time for patient care, expand their business offerings, take advantage of technology updates, and stay compliant with changing regulations.
This guide outlined the benefits of outsourcing accounting services for Australian dentists, including improved collaboration with dental accounts professionals and maximised savings in time and money. It also explores the types of dental account services available through outsourced providers and the steps for finding a qualified provider for your practice.
Benefits of Outsourcing Accounting
Australian dentists have a lot on their plate and often don’t have time for the day-to-day operations of their accounting. Outsourcing accounting can help them save time and money in the long run. It can also help them manage their finances more effectively and ensure accurate, up-to-date financial records. Let’s take a closer look at the benefits of outsourcing accounting.
Outsourcing your accounting needs can provide considerable cost savings for dentists. This is particularly true for smaller practices, where reducing costs is critical. With outsourcing, you won’t need to worry about full-time staff costs and expensive office space to house them. You can also save on costly training programs required for accounting and financial milestones like GST returns and business activity statements (BAS).
Since outsourcing your accounting only requires the payment of an agreed-upon fee (either one-time or based on periodic retainer agreements), you can budget effectively without having to pay extra money if a specific task takes longer than expected. Plus, an experienced outsourced accountant specialising in the dental industry will have the knowledge and experience necessary to work more efficiently — often faster than lesser experienced in-house staff — thus significantly reducing the time it takes to complete a task, saving you even more money.
By outsourcing your accounting needs, you can create efficiency in your practice by taking the burden off your staff and allowing them to focus on more critical tasks. Outsourcing accounting provides for an outside third party to assist with preparing financial reports, handling taxes, setting up bookkeeping systems, payroll and more. In addition to saving time for your staff members, outsourcing accounting is an important cost-saving measure. By working with an experienced professional who understands the specific needs of Australian dental practices and other healthcare businesses, you can trust your financial operations are appropriately handled without taking resources away from patient care.
Outsourcing also reduces potential errors that may occur if processes are not followed correctly — such as incorrect categorising expenses — and creates consistent procedures that must be adhered to by all involved parties. An outsourced accountant can help ensure you’re up-to-date with new industry-changing regulations or laws and guide areas where you may need improvements, such as cash flow or productivity analysis. They will also be able to effectively interpret historical data and use it to make future projections that support better business decisions.
Access to Expertise
By outsourcing their accounting, Australian dentists have access to professionals with specialised expertise and a greater depth of knowledge in the area that can help their business reach its goals. Certified public accountants (CPAs), chartered accountants, and bookkeepers all have the advantage of being able to provide the latest and most up-to-date financial advice available. As well as this, they can support complex financial situations such as tax filing, budgeting and forecasting, accounts receivable and payable, payroll management and other accounting best practices. Outsourcing gives access to experience and allows for better coordination between different services that may otherwise be difficult to manage on a full-time basis. Additionally, it also gives businesses more flexibility since accountants typically work on flexible timing allowing for financial tasks to be completed according to when it is most convenient for them.
Focus on Your Core Business
When you outsource your accounting activities, you free up time and resources that you can use to concentrate on your dental practice and its core objectives. Accounting is a necessary part of business operations. Still, often it can take up a lot of time which cuts into the energy that should be put into providing dental health services. By outsourcing the functions to an accounting firm, you will have more time to use working on projects related directly to the growth and development of your practice.
Accounting firms specialise in removing the administrative burden associated with financial management services such as tax filing, income projections and bookkeeping, allowing dentists to focus on patient care, new technology and marketing tactics. You can also use their specialised expertise in certain things special to doctors, such as preparing annual financial statements or obtaining project-based financing.
The team at the accounting firm will constantly monitor processes for improvement or cost savings so that current accounting measures are consistent with best practices to maximise overall efficiency. This ongoing support helps dentists keep their costs under control while also ensuring that their finances are always up-to-date and accurate, which leads to better decision-making. It also guarantees they remain compliant with all applicable regulations while increasing cost efficiency through proper cash flow management techniques such as e-billing systems or tracking changes in the patient insurance rules.
Finding the Right Outsourcing Partner
When outsourcing your accounting to an external partner, finding the right fit can take time and effort. It would be best if you considered the different benefits and drawbacks of outsourcing to ensure that you make the best decision for your business. Finding a reliable partner to entrust your accounting with can be challenging, but it can be done with the proper research and due diligence. In this section, we’ll explore the key factors to consider when finding the right outsourcing partner for your Australian dentistry practice.
Understand Your Needs
Before finding an outsourcing partner, it’s essential to understand your specific needs and expectations before embarking on the process. Will you need accounting advice, bookkeeping services, general consulting, and essential support?
Are there specific software packages that you must use? What guidelines should be established for security and data privacy? Are quality assurance standards stipulated? Do you require a predictable change management system for different aspects of the engagement?
It can also be beneficial to have a timeline that outlines how frequently reports and update meetings will take place. Ultimately, the outsourcing partner should strive to understand your goals and business operations before commencing work. By expressing your current situation clearly and allowing sufficient response time from the vendor, it should be possible to arrive at mutual expectations consistent with your goals.
Research Potential Partners
Once you outsource an activity, such as accounting and bookkeeping, the next step is researching potential partners. Assess your requirements and seek out those who can provide your needed services. Make sure they understand your specific situation, such as Australian dentistry, and ask if they have experience working with a similar type of business in this industry.
When researching potential partners, look for organisations that provide comprehensive services tailored to your needs. Identify firms that use reliable technology platforms and proven processes to ensure accurate and dependable results. Read through customer reviews or case studies if available, as this will help indicate the quality of their work. Lastly, when arranging a consultation call with their team of experts, highlight the areas you expect them to focus on during the conversation to provide more relevant advice and guidance.
When looking for the right outsourcing partner for your accounting needs, it is essential to check references. Suitable candidates will provide multiple satisfied customer references from various industries, preferably of a similar size to yours. Understand the length of time each customer relationship has lasted, the scope of work performed, and any specifics relating to timeline, budget, quality and customer satisfaction.
It benefits you to speak directly with existing customers to get feedback about your potential provider’s leadership and management style, problem-solving capabilities and responsiveness. Outlined below are questions that can help inform your decision:
– How long has the provider been in business?
– How knowledgeable is the provider’s staff?
– Is communication with staff easy and timely?
– What processes do they use when preparing financial statements?
– How adept are they in providing advice on cost reduction or process improvement initiatives?
– Are invoices processed quickly and accurately?
– Is there flexibility to tailor solutions when required?
– Are deadlines met consistently without compromising quality service?
– Are policies available in writing if required by auditors or other authorities?
In conclusion, outsourcing your accounting can be a great asset to any dental practice in Australia, big or small. By taking advantage of the new and improved accounting technologies, your method can save time and improve accuracy in its financial records. In addition, you should also consider the convenience factor: many outsourced accounting firms have a faster turnaround time than in-house accountants and are often available around the clock. There are many advantages for Australian dentists who outsource their accounting needs, from cost savings to increased efficiency and accuracy.