As a dentist, you attended dental school to learn how to practice the art of dentistry, but not necessarily to oversee the business aspects of your dental practice management, and these aspects include monitoring the financial aspects of your dental business. In your dental practice, a financial analysis is imperative to determine whether your practice is operating in an effective manner to produce long-term success.
If your dental business is losing money or is not as profitable as it could be, it may be time to enlist the aid of a professional dental practice financial consultant. Dental Performance Institute works with the industry’s leading trusted advisors to help optimize your practice’s financial state.
What is Financial Analysis?
A proper financial analysis is a thorough view of the state of your practice’s finances and accounting practices. During a financial analysis, your dental practice financial consultant will work with you to create an income statement. An income statement is a tool to show how profitable your business is and has been in the past, and it can help determine many financial aspects of your business.
In your financial analysis, your dental practice financial consultant will consider the following:
- Assets, things owned by the business
- Liabilities, money owed by the business
- Owners’ equity
- Creditworthiness of the business
- Future profitability predictions
Financial analysts and banks can use an income statement to establish your business’ ability to pay long-term debt, and they can use this financial information as part of the determining factors to decide upon business loan approvals. A healthier income statement and financial standing for your dental business means more profitability and more options for your business.
Why do you need a Financial Analysis?
To run a profitable business, you need an accurate picture of your business’ financial state; however, as dentists, your focus is on providing the best possible care for your patients. Because they don’t routinely teach business classes in dental school, your primary focus or area of expertise may not necessarily be in the business and financial aspects of your practice. In order to optimize your business’ financial condition, you may need some help in the form of a dental practice financial consultant or accounting consultant to get your practice’s finances in order and working optimally.
Why hire Dental Performance Institute?
At Dental Performance Institute, we will thoroughly review the financial state of your practice to determine your outstanding Operational Equity®. In our Operational Equity® analysis, we will review your financial statements and other business aspects to give you an accurate picture of the financial state of your practice. Additionally, we will help you locate potential stagnant funds that may be optimized in other operational modules to help your dental business become profitable again.