(Newswire.net -- September 3, 2015) Glendale, CA -- Many dental practices struggle with managing their finances. While the main objective for any successful business is to make more profit, Kevin Wilson of Sterling Management Systems stresses that savvy practices have to understand there is more than one factor at play in boosting revenue. “You can increase profit by decreasing overhead costs across the board, or you can increase your income,” Kevin says. “It is important to look at a breakdown of all the costs in monthly reports; when you take a look at the facts, it becomes clear what areas need correction.” The tendency of some practices is to bring in more patients for every service or to do more high-dollar procedures, but that only focuses on general income and the total gross production by month. Studying the monthly reports carefully with an eye on the percentage of production for each category of service is far more important than concentrating on the total dollar amounts. “Variations in the reports can influence monthly income,” Kevin states. “Most dental practices are familiar with the service categories that produced the income, but they don’t always understand how fluctuations in these key service areas happen.”
Practice providers may also influence how these key dental services are performing. When studying the reports, looking at the breakdown of overall production and the individual services can show which providers are performing the services that bring in income. Other providers within the practice can then be shown the techniques or methods used to “close deals”, boosting service category income in line with the rest of the team.
Tracking production from month to month can enlighten practice managers as to what is working and what is not. These reports can show, for example, that some months may have been more successful than others. “It’s good for a practice to try new methods,” Kevin says. “However, it is often easier and much more productive to identify and to strengthen those procedures that have demonstrated success in the past.”
Finally, taking a look at overhead costs can improve finances. “If your practice’s overhead expenses are relatively fixed, boosting production and collection will increase profits consistently,” Kevin states. “If those overhead costs are more variable, identify those key components that affect the monthly totals and focus on fixing them first.” By using these methods, dental practices can become comfortable with “financial literacy”, improving profits and positioning the practice for continued growth in this competitive field.
About Sterling:With over three decades of experience in the practice management field, Sterling has become the nation’s premier consulting firm of its type. Based in Glendale, California, Sterling has provided over 500,000 hours of training to nearly 200,000 clients since its founding in 1983. The company has received numerous local, national, and international awards for its consulting excellence, and has twice appeared on the Inc. Magazine list of the top 500 fastest-growing privately-held companies in the United States.
Sterling350 West Arden Avenue, Suite 200
Glendale, CA 91203