Though every practice is different, the dental industry does tend to have a certain seasonality to it. Many see an increase in traffic during the summer months when children are out of school, and again at the end of the year when patients schedule procedures before insurance benefits expire. Conversely, patient count in September often declines as students head back to class or people become busy with other activities.
Just like the temperature, your summer schedule may be heating up. To get started on the right foot, read our previous tips to prepare your office and staff for a productive and active season.
No matter how prepared you are, it’s easy to get behind by letting your accounting books slip, or looking past the foundational teachings your financial planner went over the last time you met. Busy months are great for your practice, but also an opportunity for your personal gain.
Remember these two things to help keep your practice’s financials consistent this season:
1. Keep up business as usual:
When time is limited, it is more important than ever to keep up with your normal processes and procedures. Continue to watch the numbers and monitor front office collections to ensure accounts receivable is not increasing.
Even though you may not think you can fit in one more patient, still continue to ask your patients for referrals and maintain your ongoing marketing tactics to bring in new patients. As it does every year, the rush will slow down and you will once again welcome new faces.
2. Allocating excess net income:
In most cases, an increase in production equates to an increase in net income to your business. Excess cash flow is always welcome, but our dental CPAs warn to watch excess spending. It’s important to keep a reserve for when things slow down, and when seasonality brings tight months.
Investing excess cash is also a good idea. Putting your money toward land, real estate, college funds, or other investments can help you reach your long-term goals quicker. Unsure about the best place to allocate your funds? Check out some of our resources to strengthen your investment knowledge for the long term.
Enjoy the rush, and be sure to schedule some time to relax. Remember, you don’t have to go into the future blindly—our team of dental financial planners are here to bring you confidence in your financial strategy. Ask them a question about your situation.
