Is it necessary to have a strong accounting background to be a practice owner?

[mmc12]

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I remember really struggling in my basic accounting class. Is it necessary to be strong in accounting if you want to be a practice owner? Especially if they want to do their own books?

 

[deleted699831]

No, you don't have to be.

 

[TanMan]

I remember really struggling in my basic accounting class. Is it necessary to be strong in accounting if you want to be a practice owner? Especially if they want to do their own books?

It helps to know what's going on in your office. However, you are more productive in being a dentist than an accountant. Knowing how to interpret your books allows you to make business decisions and flag theft.

 

[2TH MVR]

Hire a dentist specific tax/accountant. They will file all the quarterlies, Corp and personal taxes, tax planning, etc. etc. I paid him a monthly retainer so I would not be nickel and dimed every time I called him. It's worth it. To this day .... he has been my acct since day 1 of practice. He helped when I was purchasing my 1st practice and entering a partnership. He helped when I was building my other practices. He helped when it was time to sell my ortho practices. An Acct's knowledge is invaluable. We met quarterly for tax planning and to review the practice numbers.

But you still need to know where your money goes. I suggest that you PAY YOUR OWN BILLS. Know where every dollar goes. I used office quickbooks. We also did inhouse payroll. It's easy. Again ... the acct can help with the tax tables and payroll deductions.

BTW. Office theft, embezzling will happen in your lifetime. It happened to me. Word to the wise. Do not have ONE person entering contracts and posting payments. It is way too easy for them to manipulate the books and steal money. Have one person enter the contracts. Another person posts the payments and makes the deposit. My acct than would review the monthly ledger to see if there were any suspicious "credit" payments to patients.

 

[Saddleshoes]

Hire a dentist specific tax/accountant. They will file all the quarterlies, Corp and personal taxes, tax planning, etc. etc. I paid him a monthly retainer so I would not be nickel and dimed every time I called him. It's worth it. To this day .... he has been my acct since day 1 of practice. He helped when I was purchasing my 1st practice and entering a partnership. He helped when I was building my other practices. He helped when it was time to sell my ortho practices. An Acct's knowledge is invaluable. We met quarterly for tax planning and to review the practice numbers.

But you still need to know where your money goes. I suggest that you PAY YOUR OWN BILLS. Know where every dollar goes. I used office quickbooks. We also did inhouse payroll. It's easy. Again ... the acct can help with the tax tables and payroll deductions.

BTW. Office theft, embezzling will happen in your lifetime. It happened to me. Word to the wise. Do not have ONE person entering contracts and posting payments. It is way too easy for them to manipulate the books and steal money. Have one person enter the contracts. Another person posts the payments and makes the deposit. My acct than would review the monthly ledger to see if there were any suspicious "credit" payments to patients.

TRUTH!
TRUTH!
TRUTH!

----My accountant became one of my better personal friends over time.

----On the embezzlement issue--- I spent part of my career as a dentist in a women's prison. You would not believe how many women I met there doing time for embezzlement from dental offices!