Increasing Cash Flow in a Dental Practice

As a hardworking dentist, it can be very frustrating when there's no cash left at the end of the month. You've finally cut down on your expenses, worked on your bookkeeping skills still, you're experiencing irregular cash flow.

Most cash flow issues arise from patients not paying for services rendered. It is one of the most challenging for dental businesses and can affect payroll, marketing plans, and other business expenses.

If you're experiencing irregular cash flow, a dental associate accountant in San Diego can advise you on increasing your cash flow. This article also explains a few things you can do to fix the situation.

Establish a Financial Policy

It's vital to communicate to patients how compulsory it is to pay for treatments. First, you might want to create a written document of the cost of standard dental procedures to show clients upfront.

Communicate verbally the total cost of all the treatments they require. Then create a physical or digital document and have them sign. With a well-established financial policy, patients will know that non-payment is not an option.

Train Team Members

Train every team member in your dental firm on effective methods of increasing cash inflows. Firstly, address any communication issues among your employees. For instance, your clinical staff should appropriately communicate the details of a patient's bill to the employee responsible for collecting payments.

Secondly, teach them how to discuss outstanding payments with patients. When reaching out to delinquent clients, the staff responsible for such calls should show compassion. Try to understand why they haven't paid and help find solutions.

Before ending such calls, it's essential to kindly remind the patient of the amount due and when you can expect payment.

Provide Details of Treatment

When payment is due, it's not enough to inform clients of how much they owe. You might need to go over the treatment details, so they know the exact services you rendered. This strategy will help them with a better understanding of their bill.

Introduce Online Payment

Some dental practices mail clients a credit card form to fill in their information and return. This method is inefficient, as it could take several weeks for patients to mail back the document. A better option is to create a website and introduce online payments. Then, you can get your fees within a few days rather than months.

Utilize Third-Party Financing

Many patients can't afford to pay a lump sum for expensive dental treatments. You can utilize third-party financing options that allow patients to pay their bills in small installments over a certain period.

Third-party financing options are very beneficial, helping patients access the treatments they need and helping your practice increase case acceptance. You can discuss third-party financing options for your practice with a dental associate accountant in San Diego.

Conclusion

Cash flow problems can lead to other management issues and threaten the future of your dental practice. While there are several causes of low or irregular cash inflow, a huge contributor is patients not paying for services. You can overcome your cash flow challenges by taking the steps discussed above and consulting with a dental associate accountant in San Diego.