Measuring dental practice production with specific key performance indicators (KPIs) on a daily, weekly, monthly, and annual basis is fundamental when seeking to increase profit and foster long-term success in your dental practice.
Opening a dental practice is much more involved than purchasing equipment, hiring a few people, and simply opening your doors. There is much to consider and plan for, especially in regard to cash flow. The American Dental Association suggests the average initial investment to start a practice is $500,000, which includes office construction, securing office equipment and dental supplies, paying employees, marketing expenses, and even legal consultation fees. This number varies greatly depending on location, owning versus renting your space, and the size of your practice – regarding square footage and the number of employees.
Dental practice cash flow primarily depends on billing patients and insurers. How much revenue your practice generates matters for both tax filings and external parties like banks and investors, but in the numerous challenges of running a dental practice, having enough cash on hand is a different matter altogether.
There are numerous challenges of running a dental practice, such as technological shifts, patient expectations, and ever-evolving economic issues (to name a few). In addition to the challenges dentists face on a clinician front, managing a dental practice is also a test of one’s entrepreneurial spirit. Opening a dental practice is only the first step, as the different stages of a dental career can also result in evolving business goals.
Running a dental practice comes with a multitude of expenses. To provide the best care for your patients, it’s necessary to be well staffed and have sufficient supplies, adequate facilities, and up-to-date equipment. But to be profitable, you must keep a watchful eye on your overhead expenses.
Have you ever been a little unsure as to the classification of your employees as being exempt from overtime compensation, or being eligible for overtime compensation - which is called being “nonexempt”? This issue causes a tremendous amount of confusion for many employers, which can lead to major headaches, and oftentimes, monetary awards for back wages that are determined to be due by the Department of Labor (DOL).
Wage and Hour Investigations by the DOL have been increasing in recent years and actually set an all-time record in 2016. This area has seen aggressive scrutiny and focus by the DOL in recent years. Wage and hour cases are the most active types of litigation in the field of employment law. The year-to-year increases have become a pattern since 2000, going up by more than 450% since that time. Every employer must follow wage and hour laws to the fullest. There is no room for shortcut or a lax approach when dealing with employment laws.
So, what is the major mistake that many employers make that is getting them into hot water? There are actually two major mistakes and one of them revolves around misclassifying employees and how they have to be compensated. We will talk about that one in this article and then cover the other in our next newsletter. ......
Performance feedback is one of the most important duties of a manager. In many cases, employers don’t give performance feedback at all or wait until a problem arises before providing it. By proactively managing employee performance from the beginning, you can avoid any possible legal or internal team issues.
A chief financial officer (CFO) is more than just a CPA or accountant. A CFO brings a higher level of analysis, reporting, and planning to the financial aspects of your firm. A CFO will analyze the strengths and weaknesses of your dental firm from a financial perspective, rather than simply providing an income statement and balance sheet for you or your board of directors to analyze.
You do everything you can to apply industry best practices to your own practice management. Insurance for dental practices can help you manage business risk and protect your patients, staff, and practice. However, with so many insurance products on the market, how can you tell which ones will provide adequate, but not excessive, coverage? With the safety of your employees and patients on the line, you may need help choosing an insurance carrier that offers adequate coverage with affordable rates.
This time of year, fraud schemes begin to pop up in greater numbers, putting business owners at risk. These threats happen to well-established and new companies. Let’s take a look at a few of the most common schemes that target dental practice management.
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