As a dental practice owner, you are always looking for ways to do things better – deliver better service for patients, smooth out practice processes and ultimately grow your business.

However, if your background is as a healthcare a professional, the financial side of running a dental practice may be something that you came to later in your professional journey.

At RA Accountants we are experts in helping dentists at every stage of their journey. We help dentists make the right business decisions from starting up their first practice, to growing to multiple sites, all the way to eventual succession planning.

For dental practice owners, our dental accountancy experts have pulled together a list of 8 tips from our accountancy perspective to help you maximise your dental practice revenue.

1. Ensure you have efficient revenue management processes

Cash flow and revenue management need to be central to the running of your practice operations.

Revenue management can be improved by optimising billing and collection processes to ensure timely payments from patients and insurance companies. As well as, implementing automated billing systems to reduce errors.

A second key factor is in keeping your schedule full. Every appointment not booked is revenue lost for the business. So, use targeted marketing efforts where necessary to keep your schedule booked out.

2. Keep control of your costs

As a practice owner it is important to regularly review operational costs, including supplies, equipment maintenance, and staffing. Identify areas where costs can be reduced without compromising quality of care.

This could be by reviewing suppliers for equipment and services, or outsourcing resource intensive tasks to an external provider.

3. Use Cloud Accounting

This software will give you real-time access to your financial data, meaning you always know exactly what your financial position is.

You can think of cloud accounting is bit like internet banking. Rather than having all your accounting information saved on your computer, it is stored online instead. This means you can access it from any device, anywhere and anytime you like.

This can make it an important tool in your arsenal for managing your business revenue and controlling your costs.

Common cloud accounting software is provided by companies such as Xero.

Top tip: If you need help implementing Xero cloud accounting software – please get in touch. We are a Xero Platinum Partner, the top level of the Xero accreditation scheme, meaning we can help you get the most out of the Xero software platform.

4. Create a strategic pricing plan

Analyse your fee structure to ensure it is competitive and profitable.

Consider what your local competitors are offering and what they are charging. Ideally, you don’t want to compete on price, but by offering greater value to your clients in other ways.

This could be the types of service you offer, the quality of your service, or even how clients interact with your business. For example, it is easy to book an appointment, are your staff friendly, and is the practice a pleasant place to be.

When you deliver greater value to your patients, you can command higher pricing.

5. Maximize Your Tax Efficiency

A good business structure can be the key to making your business tax efficient.

However, this can be complicated to work out and will depend in your individual circumstances, as well as your long-term goals. We therefore recommend you work with an experienced tax professional to ensure you are using the most efficient tax structure for your business.

A specialist dental tax expert will also help you take advantage of all available tax deductions and credits, as well as stay updated on tax regulations specific to healthcare practices.

6. Diversify Revenue Streams

As a dental professional your time is both valuable and finite, therefore increasing the average revenue you are able to generate per treatment can be a great to increase your business revenue and grow your dental practice.

You could do this by offering additional services higher value services such as aesthetics, orthodontics, or other specialised treatments. The other benefit of offering these additional services alongside increased revenue, is developing a reputation in these areas can be a fantastic way to attract new patients.

Alternatively, think about are there other revenue streams you could explore? This could be around sharing your facilities or merchandising dental products.

Top tip: When considering diversifying services (e.g., offering aesthetic treatments like dermal fillers, Botox, etc.), it’s essential to seek professional advice.

One key area to consider is aesthetic services are Vatable. Many dental practices expand into the aesthetics field, but it’s important to note that services like Botox and cosmetic procedures are subject to VAT. Understanding VAT registration requirements, invoicing, and compliance with HMRC will help you avoid potential pitfalls.

7. Financial Planning and Forecasting

An important element of growing your business is having a plan. When it comes to your finances this is just as true.

Taking the time to develop a comprehensive financial plan that includes budgeting, forecasting, and setting financial goals is one of the most important steps you can take to ensuring the success of your practice.

Once you have your plan in place, avoid the temptation to let it collect dust on the shelf. Instead, regularly review your financial performance against your planned goals to make sure you are making informed business decisions.

8. Let your team ‘own’ parts of your budget

It is often said, no one looks after a business money quite like the owner. However, with your responsibilities pulling you this way and that, it can be hard to keep tabs on all parts of your business’s finances.

This is where giving responsibility for parts of your budget to an individual member your team can be a great way to control costs. With ownership and responsibility for their part of the budget – they can give more attention than you would otherwise be able to do managing the whole budget yourself.

A second set of eyes can also be a great way to spot opportunities and potential issues you might not have picked up on.

RA Accountants are specialists in offering accountancy services for dental professionals. We offer a complimentary, initial online consultation to discuss your personal circumstances and to see how we can help. Get in touch to book your appointment today.

These articles are for guidance only and professional advice should be obtained before acting on any information contained in them.

No responsibility can be accepted for loss occasioned howsoever to any person as a result of action taken or refrained from as a result of reading.