HOW TO IMPROVE DENTAL PRACTICE ACCOUNTING, BOOKKEEPING AND TAXATION BY USING CLOUD ACCOUNTING TECHNOLOGY
As a dentist you know better than me that your time is far more valuable than anyone who works for you. Congrats, you are the king or the queen. So by that rational the more you delegate the better you use the highest and best value principle. The principle states that we are better off and must be doing the most valuable activity.
Some of the tasks that make a lot of sense to be delegated are the accounting services.
Here is how we do it differently leveraging cloud accounting technology.
Cloud technology make it effortless, here are the steps:
- Setup you on on Dropbox to exchange documents and have a secure place to store files.
- Setup QuickBooks Online to perform the day to day accounting tasks, QBO takes the data right from the source – banks.
- Setup T-sheets to keep track of employee hours and their schedule
- Setup Wagepoint to run payroll, salaries are paid through direct deposit and it pays CRA automatically.
- Setup and integrate Receipt Bank app to capture and record each receipt and store for 10 years
- Setup and integrate HubDoc to retrieve bank and credit card statements
- Setup and integrate Slack so you can communicate with us more effectively and efficiently.
- Obtain CRA authorization so they don’t waste your time and call us instead.
These 8 elements will generate a lot of time savings. In addition, our CFO services along with these can optimize your clinic even more.
If my office burn down with all its computers to the ground none of my files are lost. All my files close to 1000 folders are stored in Dropbox. Dropbox keeps back up and their firewalls are much better than any of us can buy.
Another feature that I really love is file transfers, our clients are asking us to email them their documents from time to time. These are the clients that are not very technology savvy or maybe do not have time. 1st, we educate them about how emails are unsafe and hackers can get to them easily. 2nd rather than just emailing we transfer through Dropbox. This feature allows only the recipient to open the email and also the email expires after a few days, so there is no trace of the data online.
The app also has a built in scanner in case you want to send us an urgent form. It will scan the document in PDF and save it to the folder that we are sharing.
In the past, I used to convince my clients to use QBO and would compare with Desktop version, list advantages and so on.
Now, it is a must requirement if you they want us to help with their accounting, bookkeeping and taxes.
It is extremely powerful and the fact that so many apps connect to it make it even more and more valuable.
T-sheets is revolutionary, it keeps track of employees through apps and kiosk. In keeps track of time worked, sick days, vacations, coffee breaks, lunch hours. All of these are done automatically, without any efforts on your part or your office managers part. At the end of the pay cycle, once the hours are approved they are sent to be processed either in Wagepoint or QBO payroll Module.
One sneaky feature that I like about this app is its “micro management”. The app also uses GPS, so let’s say employee uses it’s phone to log in and he/she is not in the office yet. The app will notify you that the employee log in but was not in the office.
The app acts as a virtual time card.
It also another great feature, if you want to know exactly how much is spent on a client you can use its project feature. It will show which staff worked on a client and how much time it took to the job.
The app also allows for scheduling.
Wagepoint prepares payroll, pays CRA the source deductions amount on time, prepares T4s and T4As as soon as the year is over so effectively and efficiently. As simply as I have stated. This feature still hasn’t been resolved and mastered by so many business owners and Wagepoint does it with so much ease.
I remember when it just came out, I thought it was useless since we recorded the data automatically. Why did we want to use RB. The key is the app 1st captures the receipts and sends it to QBO, in addition, it will read and record everything on the receipt, such as date, invoice numbers, product descriptions, items, taxes, …. It will also save the receipt for 10 years. In addition, it has a “Fetch” feature, basically what it means is that it will go to online supplier, let’s say Bell Canada and Fetch the invoice. Not done yet, it allows for unique email such as [email protected] any invoice email to your unique address, will go through RB process. Also not done yet, let’s say you had 100 receipts that were not saved electrically or processed yet, us or you, save all the receipts onto one PDF document and email it your unique email address. RB would receive the email and split the 100 page PDF and record each one on it’s own. I don’t know about you, but as an accountant I get so excited each time I see this.
I now, can’t leave without RB, I’m now audit proof, if CRA asks for any backup documents, I can produce it in a sec and can also send it to CRA online. We have a podcast that we explain how RB will your firm audit proof and also saves a ton of time when Mr. Tax man is knocking on the door.
Think about all the paper that is been saved.
Hubdoc has the same feature as RB however, it is so powerful in retrieving old bank statements.
We has a client who has had a practice but neglected his accounting for a few year, he also didn’t have time to go to the bank and ask for bank and CC statements. I asked him to come to our office and I setup Hubdoc, while him and I were having a nice espresso and chatting, Hubdoc, retrieved 375 statements.
Once you have more clients and staff and receive email after email after email, even worst email from multiple contacts, its management will become very hard. Slack solved this problem, the app allows creating channels per client, we would send relevant messages just fr that client with the hellos and regards and thanks … The channel would keep ta history of the communication. This is a knowledge transfer asset in case an employee leaves or a new one starts,
The less time you’re focusing on overseeing the books and budgets for your practice, is more time that can be put into growing your practice. Building a solid and consistent patient roster is a stronger investment than those countless hours you’d be doing diving into the financing. Let alone the stress of it all. Working with accountants for dentists like Numetrica City, we put that time in for you, like it’s our job…because it is!
Having a good accounting firm handle the day-to-day of your dentistry practice means that they’re taking care of the budgeting and reporting. They will also help you to be able to properly implement the 10/25 rule needed to move your practice’s accounting into profit first functioning. As well as then properly account for all the accounts needed to run a profit first practice, and keeping track of each of those accounts and the money that is moved into them every month. Which is a perfect lead in to the next reason why hiring an accounting for dentists in Ottawa firm is beneficial.
Dealing and liaising with CRA
I know CRA staff are super nice but no one likes to receive a call from them. We made this easy, Once you give us your authorization CRA will call us in case they need something. This has been so valuable for many of our clients. In most cases, the phone call was for a small item and we can resolve it in a few minutes. So no need for them to call you and you call us and we can them ….
We know businesses, we know businesses pulse and can sit down with you and discuss how business is doing. how we can maximize profit, come up with strategies to increase sales, reduce expenses, … the benefit to you is that you get the CFO when you need one, just like the fact that we come to you when we need you. I definitely can’t afford to have a dentist full time so I see one when I need it which is one every quarter plus regular check up.
Implementing Profit first strategy for dentists:
In a profit first approach to your practice, there’s a few things to know before we continue. The way to approach profit first is a simple formula really:
Sales – Profit = Expenses
Essentially, what this means that after a month of work you’re going to pay yourself first. BEFORE anything else, including bills. Where normally, you’d pay your bills and expenses, then look to improve machinery or buy things you need for your practice before paying yourself. With this formula, you always pay yourself first, then you work with what you have left to handle all expenses. This means that you’re forced to find ways to save money. Yes, it can be scary, but you’ll thank yourself in the long run.