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6 QuickBooks Tips Every Dentist Should Know

You have finally decided to purchase a copy of QuickBooks to help take your dental practice to the next level. You have heard of (or maybe you have seen) all the great things it can do. But you really aren’t sure what version you need. Or maybe you have actually purchased the software, but you are still staring at the box, wondering what to do next. Here are a few tips every dentist should know when using QuickBooks in their practice.

6 Easy Ways To Master Quickbooks

1. Choose The Right Version

When you research the QuickBooks software, you will quickly discover that there are three versions available. While it is helpful to review the benefits of each version, I would personally recommend QuickBooks Pro for a dentist with a startup practice. This version is ideal if you know that you will have three users or less. It is also the most basic of the QuickBooks choices and the cheapest. If you will have five or more people using the software, however, consider one of the other versions.

2. Opt To Work Offline

The Internet is a great tool for so many aspects of your practice – just not where QuickBooks is concerned. At this time, QuickBooks online has too many flaws. Until they are corrected, I would recommend staying away from this version of the software.

3. Become A Master Of Your Files

The key to keeping good, clean files is to set up proper categories within the software. This means categorizing all of your charts properly (i.e. assets, liabilities, equity, income, expenses). Next you will want to use the icon bar, located on the top of your screen, to set up your customers and vendors.

4. Order Matters

It is so important to enter your data in the proper order. For example:

  • When you are entering money that was received from your patients:

– When your patient pays you for a dental service, click on the “create invoices” option on the Home page and choose the patient’s name.

–  Click on the “receive payments” icon, which is also located on the Home page. At this point you will choose the payment method the patient is using and the amount of their payment.

– When you are ready to deposit the payment into your practice’s bank account, click on the “Record Deposits” option on the Home page and, from the payment list that appears, select the payment you would like to deposit.

  • When you are entering money that you paid to a vendor:

– Click on the “Enter Bill” icon found on your Home page and fill in the vendor’s name and the amount owed to the vendor.

– When you are ready to pay the bill, click the “Pay Bills” icon on the Home page and select the bill you would like to pay, the payment date and the payment method.

5. Reconcile Every Month

At the end of the month you, or your Bright Dental CPA, must reconcile the bank account. To do this, simply click on the “Reconcile” option on your home page and make sure the beginning balance on your screen matches the beginning balance on your bank statement. Then just check off the items until the reconciliation difference is zero.

6. Generate The Right Report For The Right Request

Now that all your information has been inputted correctly, it’s time to generate the reports that will help you optimally manage your practice. All your reports can be found by clicking on the “Reports” button on the icon bar. This will open the reports center. Then, all you have to do is choose the category of reports you want to see. Some of the most common reports you will generate include:

  • Balance Sheet – This report will give you a general picture of your practice on any given day.
  • Profit & Loss – This report will show you the revenue and expenses for the time period selected.
  • Accounts Receivable Aging – This report will show how much your patients owe you and if they are past due on their payments to you.
  • Accounts Payable Aging – This report will show you how much you owe your vendors and if you are past due on your payments to them.
  • Payroll Reports – Some practices will use QuickBooks for payroll purposes. If you take time to review this option, you will find lots of helpful information.

These basic tips will help you scratch the service when it comes to your QuickBooks success. Perhaps the most important lesson you can learn however, is to take the time to make sure your categories and information is correct and up to date – otherwise, the reports you generate will be useless. Contact us if you need help updating and categorizing your information.

Need Help? Ask A Professional!

Our dental practice professionals work with dentists like you everyday to help them maximize their business practices. From accounting and bookkeeping to practice management, we have the skills, experience and expertise to unlock your full potential. today if you would like help unlocking your practice’s full potential. Email us today to learn more.

By Alan Hill, CPA (Mentor office)


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Rea & Associates, Inc. | Bright Dental CPAs | 7201 Center St, Mentor, Ohio 44060-4858
phone + 440-266-0077