The Top Five Mistakes that keep dentists from preserving more of the collections their office receives are…
1. Misinterpreting cash flow as profit, paying expenses and owner distributions based solely on the checkbook balance.
2. “Sweating the small stuff.” If you only measure and react to short windows of practice performance, you may be experiencing unneeded stress. Instead, lay out a game plan each year in advance for annual production, collections and expenses.
3. Assuming your checkbook balance should relate to the Profit on your P&L.
Business success—aka, “profit”—requires understanding business language. If the language of business is numbers, then understanding the financial analysis of your reports is the key to understanding what your practice management Software is telling you. Does your team include someone who regularly absorbs, comprehends and translates your numbers into productive actions for the team? If your answer is “No,” you will miss maximizing your practice profit.
4. Focusing all your team’s energy on production and neglect collections and expenses.
Ultimately, only two elements affect profitability: Expenses and Collections.
5. Not knowing that there are three “hats” you wear in your practice, with three associated paychecks you should derive.
At cyber CFO we’ve spent twenty years helping our clients avoid these mistakes. We can help you with these issues, and more. Pick up a phone and contact us today at: 800-354-6866