It doesn’t matter how hard you work if you always feel as if you can’t ahead of your dental practice debt. That feeling of being helpless and overwhelmed by your dental practice debt, with no knowledge on how to pay it off will eat away at your soul. No one likes being under debt, and you certainly hadn’t envisioned how hard it would be to get your dental practice debt under control.
However, it isn’t all doom and gloom, since there are ways in which you can control your debt. The thought of reducing your debt right now may seem like an impossible one, especially when you’re struggling to keep your head above it. But you don’t need to worry about it alone, since we will help you in overcoming your dental practice debt in only 5 steps!
If you are serious about getting your dental practice debt under control, here is what you will have to do in order to obtain the path of success:
1. Understand why debt is a problem:
You can accumulate debt through various sources, such as equipment leases, lines of credit, mortgages, loans, and business credit cards. The first thing you need to do is understand why debt is becoming a problem. Debt may be the cost of doing business for you, but if you’re struggling to control it, that solely comes down to poor financial management.
Look at how debt is compromising your dental practice and the number of problems you have to deal with because of your rising debt. If you don’t try to understand the problem, you won’t be able to get the solution.
2. Look at cash flow:
Once you have understood why debt is such a major problem, you should take a look at the financial situation of your dental practice. The best way to look at cash flow is through a cash flow assessment. Make sure that you look at the complete picture and check out each and everything regarding the costs of your dental practice. This means looking at:
- Payments for the lab
- Monthly facilities cost
- Taxes and benefits
- Dental supplies
- Miscellaneous expenses
It is imperative that you find out the source of the problem after you have understood it.
3. Educate your patients in advance on the Billing Process:
One of the most frustrating things to deal with when you’re dental practice is under debt is the high number of patient delinquencies. If your patients are failing to pay their bills on time, it is because they don’t understand the payment and billing process of your dental practice. If you don’t get your patients to pay on time, it will only contribute towards increasing the debt burden on your dental practice.
So make sure that you explain the billing process and payment options available to your patients in advance, and answer their questions about dental insurance, so that they know the exact amount they have to pay.
4. Hire experts to look at your finances:
By this step you should have a good handle on your finances, but you shouldn’t relax because you’re not completely out of the woods as yet. To control your dental practice debt you should hire a professional financial expert to evaluate your financial situation.
They will help you identify the best way to reduce and control your debt, and you will be well on your way to reducing all stress from your life.
5. Update your systems:
The last step you need to do is update all the systems in your dental practice so that there are fewer chances of errors occurring. Inefficient systems contribute towards your debt, which is why it is important that you keep them up-to-date.
Updating your systems will not only help you control your dental practice debt, it will improve morale of team members, and improve efficiency in the practice.