Eliminate unnecessary expenses. Almost all businesses, including dental practices, end up with operating costs that may have made sense in the past but no longer do so. Go through the books line by line, identifying each expense item and judging whether it still benefits the practice or patients. You'll probably be surprised at the waste you're able to eliminate.
Don't forget to build a budget. Most practices do not have a budget and barely pay attention to their profit and loss statements. This means they are operating in the dark, hoping and expecting that there will be enough money in the checkbook throughout the year. Ask your accountant to help you build a budget and then benchmark your results every month against the budget to determine how you did that month and how you are doing year to date.
Dr. Roger P. Levin is the CEO of Levin Group, a leading dental management consulting firm, and one of the most sought-after speakers in dentistry. Levin has authored 65 books and more than 4,000 articles on dental practice management and marketing. You can sign up for the Levin Group Tip of the Day.
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