Dental practices are businesses, and to keep them profitable, you need a clear grasp of your finances. When searching for help with this, you may run into bookkeepers and accountants, so which do you need?
Bookkeeping vs dental accounting is a common area of confusion for dental practice owners, but understanding the difference is key. Though closely related, these functions serve very different purposes, and understanding them can make a big impact on your business decisions.
What Is Bookkeeping for Dentists?
Bookkeeping is the day-to-day process of recording financial transactions. Tasks include:
- tracking income and expenses
- managing payroll
- Reconciling bank statements
In short, bookkeeping gives you the raw numbers. It helps you stay on top of your cash flow and prepare for tax season, but it doesn’t offer much insight into how to grow or optimize your practice.
What Is Dental Accounting?
Dental accounting, on the other hand, is a more strategic process. It involves interpreting the data provided by bookkeeping to help you make informed decisions. A dental accountant will analyze your financial statements, forecast your revenue, monitor key performance indicators (KPIs), and help with budgeting and tax planning.
For example, a bookkeeper might note that your lab fees increased this quarter. An accountant will dig deeper to figure out why, and whether it’s time to renegotiate supplier contracts or adjust your pricing strategy. Both are necessary, but they serve very different roles in your dental practice.
Why It Matters for Your Practice
With the right support, you can spend less time stressing over finances and more time focused on your patients. Dentists who understand both functions are better equipped to:
- Reduce unnecessary expenses
- Maximize profit margins
- Plan for growth and expansion
- Make smarter investments
How Dental Business Coaching Bridges the Gap
Dental business coaching can help you integrate both bookkeeping and accounting into a streamlined financial strategy. Coaches who specialize in the dental industry understand your unique challenges and goals. They can help you put the right systems in place, interpret financial trends, and align your business operations with long-term objectives.
Choose Davis & Cole for Dental Business Coaching
At Davis & Cole, we help dentists take control of their practice finances by showing you how to use them to grow your business. With a deep understanding of dental accounting and bookkeeping, our team provides coaching that turns data into strategy.
Ready to take your practice to the next level? Book a free consultation today and let Davis & Cole help you build a healthier business.
