Did you have a good fiscal year? Remember, you're the CEO of your practice, so it's up to you to know how your practice is progressing toward its profitability goals. If your financial picture is unclear, now's the time to bring everything into focus.
Follow a budget. The simplest approach to making a budget is to track and then analyze how the practice is spending money. Evaluate where revenues come from and where expenses go. Track all practice collections and expenditures using practice management or accounting software. Adjust line items to reduce waste and increase profit to finalize the budget -- and then stick to it!
Don't waste money on unnecessary technology. You may be tempted to buy the latest equipment, but you should exercise fiscal discipline. Evaluate new technologies carefully to determine if they'll benefit patients and how long it will take to break even on the investment. If it won't help patients or production, keep your money in your pocket. If you see benefits but it's not in your current budget, put it in next year's spending plan.
Roger P. Levin, DDS, is the founder and CEO of Levin Group, the leading dental practice consulting firm in North America. For the complete list of dates and locations where you can attend his latest seminar, visit www.levingroup.com/gpseminars.
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.
