The Truth About Your Accountant

Face facts, your accountant probably knows very little about your business. Yes they may have prepared your annual accounts, told you how much tax to pay, but do they know the impact of a closed lunch hour on your annual profits? Or the impact of changing the price of your crowns on your annual take home pay?

Probably not.

As a general dentist you probably are not going to carry out complex orthodontic work, or specialist endodontic work, you would refer this to a specialist colleagues of yours.

Well the same principle applies to your choice of accountants you use to advise you. Small or big, in these changing dental times, it is now more important than ever to have advisors who know their subject. I can proudly say, at Samera we eat, live and breath dentistry. By having our dental practices, we see and experience many of the same problems our clients face every day, so not only can we relate to you, we are always looking for ways to overcome the many problems you face daily, just like we do.

If you are unsure if your accountant knows his stuff about dentistry, ask him (or her), amongst many other, the following questions:

1. Does he know what Invisalign is and how much should you be charging for it in your practice?
2. What treatments provide you with 80% of your profit in your business?
3. What non financial Key Performance Indicators should you be monitoring in your practice?
4. How can you increase chair occupancy through low cost marketing strategies?
5. What gross profit margin does a hygienist generate compared to an associate dentist in your practice?
6. What patient cancellation policy should you have in practice?
7. What hourly rate should your fees be set at to ensure a profit margin you desire?
8. What remuneration strategies should you have in place for your Dental Associates? Should you be paying 50% of gross fees or higher/lower?
9. As a % of turnover, what should your staffing costs be?
10. How can you make more money, than you currently are, in dentistry?

These are just the tip of the iceberg. In today's climate your accountant should be able to answer all of these questions easily along with the pre-requisite tax advice. If not, then perhaps it is time for you to demand more or make a change.