Why you should think again about hiring an "in-house" bookkeeper
Having a little fun with the media above, but seriously as a dental practice owner, is it a bad idea to hire an "in house" bookkeeper? There are probably many qualified candidates out there, right? Won't it save my practice money and be more convenient? These are questions that many practice owners have asked. However, having an in-house bookkeeper isn't always cost effective or efficient. You also may not get the best expertise, along with making your practice more vulnerable to fraud. Yes, that's right, more vulnerable to fraud. We will go more in depth on that subject.
If an in-house bookkeeper isn't the best solution, then what is? These days, many offices outsource their bookkeeping. The top reasons are: Cost Savings, Greater Expertise, Increased Efficiency and Reduced Risk. Let's explore each of these individually.
COST SAVINGS
As a dental practice owner, you probably already know the employees are one of your biggest expenses. Oftentimes not only do you pay for their salary but there can be benefits and employment-related costs. The employee also doesn't come with their own software and tools to support their work. On then the other hand, outsourcing your bookkeeping tasks allows you to pay for only the services you need. You can choose a service package that meets your practice's specific needs, and you'll only pay for the work that is completed.
GREATER EXPERTISE
When you outsource your bookkeeping tasks, you'll be working with professionals who specialize in accounting and financial management. These experts have years of experience working with dental practices and understand the unique financial challenges that they face. They also stay up to date on the latest accounting rules and regulations, so you can rest assured that your financial records are accurate and compliant. An in-house bookkeeper may not have the same level of expertise as an accounting firm that specializes in dental practices. Additionally, if your bookkeeper leaves the practice or takes time off, you may be left with an inexperienced staff member managing your finances.
INCREASED EFFICIENCY
Outsourcing your bookkeeping tasks can also help increase the efficiency of your dental practice. When you work with an accounting firm, they will use the latest software and technology to manage your financial records. This can help streamline your financial processes, reduce errors, and save you time. An in-house bookkeeper may not have access to the same technology or may not have the skills needed to use it effectively. This can lead to delays, errors, and other inefficiencies that can slow down your practice's operations.
REDUCED RISK
I have mentioned this before in other articles and I will say it again. "Over 60% of Dentists will experience some type of fraud in their career". That is actually a lower percentage than it should be. Many doctors do not report the fraud that happened in their office for a variety of reasons. Therefore, I want to dig a little deeper on this subject and bring a little of my personal experience into it. I was a dental hygienist for over 35 years and have owned my own bookkeeping firm for almost 7 years now. I have a good perspective from both sides.
As a Bookkeeping firm owner, I know that I have strict internal controls and procedures to ensure the security of your financial information. All staff members also go through a criminal background check. In contrast, when I worked as a dental hygienist, it was very seldom that the doctor did a background check on new employees. Also common in the dental office was for computer screens to be left in full view for other employees. An employee would leave the computer while still logged in, leaving an opportunity for someone to enter information under their name.
When it comes to ethics, there is a huge temptation being set up if you have the person that does the books also collecting the money and recording payments. I was at a fraud webinar a couple of months ago where the speaker was a dentist whose front desk embezzled over $350,000 in about a 5 year time period. She also did the books. As a matter of fact, she had two sets of books, one for the doctor and one for the CPA. You can guess why. This was also a supposedly long time loyal employee. The average length of employment of an embezzler is about 8 years. They are good at pretending.
The risk of fraud is greatly reduced with outsourcing your bookkeeping. Most firms have "read only" access to accounts. To take it a step further, an outsourced bookkeeping firm that uses reports from your Practice Management software to incorporate into financial statements, can help look for red flags. (Many bookkeeping firms only do cash basis and do not concern themselves with what is in the PMS) When red flags or inconsistencies are found, they can be explored further possibly with an expert.
In conclusion, outsourcing your bookkeeping tasks can provide numerous benefits for dental practice owners. From cost savings and increased expertise to greater efficiency and reduced risk, outsourcing your financial management to a professional accounting firm can help your practice run more smoothly and profitably. So if you're considering hiring an in-house bookkeeper, it may be worth exploring your options for outsourcing your bookkeeping tasks instead
If you would like to know more how to outsource your bookkeeping, click on the link below for a free consultation.
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