Refinancing and Restructuring Debt

In this webinar, Arun, Nigel and Dan take you through what you need to know about refinancing and restructuring your debts and finance.

Business Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Money Saving Tips for Dentists

Running a dental practice is not easy, and it can be expensive. You have to pay for things like equipment, supplies, staff, and rent, which can eat into your profits. But there are ways to save money without compromising patient care. In this article, we will share some tips to help you save money in your dental practice. You can negotiate with suppliers, reduce waste, and make your operations more efficient to cut costs.

When it comes to saving money, dentists walk a tightrope. This is because any minuscule changes you make to your dental practice can have the opposite effect and could hurt your business instead of helping.

With a dental business it is very hard to cut overheads, such as property costs, employee salaries and administrative services. These are things you need to spend on to maintain your dental practice and keep patients coming through the door. That’s what makes saving money on these things very tricky.

As a dentist, you are always committed to your patient’s health and wellbeing. However, as a business owner, you need to earn the necessary profits to sustain and grow your practice. Samera helps dentists all over the UK find the right balance in the inflationary environment we now live in.

In a time where inflation and interest rates are rising, much like many other expenses, shopping around for better deals on everything you need in your practice is a necessity.

However, Samera cuts this need entirely by automatically finding you the best value options from the leading brands in the industry through the Samera Dental Buying Group. Get in touch with Team Samera to see how we can help you save money today, but in the meantime have a read of our tips below.

Click here to read more about how to cut expenses in a small business.

By following these tips, you can run a successful practice while keeping more money for yourself. Whether you have a small practice or a large dental group, keep reading to learn how to save money and improve your profits.

Top Money-Saving Tips for Your Dental Practice – Webinar

First of all, watch this free webinar in which Arun discusses ways in which you can save money in your dental practice, from utility bills to dental equipment and consumables.

Introduction: The importance of saving money in your dental practice

Running a successful dental practice means taking good care of your patients and managing your money well. We know that providing excellent dental care requires investing in equipment, supplies, and staff. But it’s also important to find ways to save money without compromising the quality of service.

By using smart strategies to save money, you can make your practice more profitable, streamline operations, and ensure long-term success. In this blog post, we will give you valuable tips to help you save money in your dental practice. We’ll talk about optimising your supply chain and using cost-effective technology, among other things.

Saving money in your dental practice not only helps your finances but also allows you to invest in things like training your team or improving your practice’s infrastructure. So, let’s get started and learn the best money-saving tips to make your dental practice thrive while keeping your finances in order.

Action Point

Optimize your dental practice’s finances by negotiating for better supply prices, embracing cost-effective technology, and streamlining operations to boost profitability without compromising care quality.

Evaluate your expenses: Identify areas where you can cut costs

To run a successful dental practice, it’s important to manage your finances wisely. One way to increase your profits is by looking at your expenses and finding areas where you can spend less money. This will help you use your resources more effectively.

First, go through your budget and examine each expense. Look at things like supplies, equipment, utilities, and employee salaries. See if there are any costs that seem too high or unnecessary. For example, you might discover that you’re spending too much on certain supplies or paying for services you don’t really need.

Next, think about alternatives or ways to save money for each expense. Can you negotiate better deals with your suppliers? Are there cheaper options for equipment maintenance or repairs? Can you find ways to use less energy and lower your utility bills? These are all things you can consider.

Another area to focus on is your staff’s schedule. By making sure your employees work efficiently and optimising their hours, you can potentially reduce labour costs without compromising patient care. Think about implementing flexible schedules, training your staff to do different tasks, or outsourcing some administrative work.

You can also use technology to make your operations more efficient and save money. Digital record-keeping, online appointment scheduling, and automated reminders can help you cut administrative costs and work more efficiently.

Remember, reducing costs doesn’t mean you have to compromise on quality or the experience you provide to your patients. It’s about finding smarter ways to use your resources without sacrificing the level of care you give. By regularly reviewing your expenses and making strategic changes, you can save money and improve the financial health of your dental practice.

Action Point

To boost your dental practice’s financial health, thoroughly review expenses and identify savings opportunities without compromising care quality. Consider negotiating better supply deals, optimizing staff schedules, and utilizing technology for efficiency. Regular financial evaluations and strategic adjustments can lead to significant savings and enhance profitability.

Negotiate with suppliers: Tips for getting better deals on dental supplies

Negotiating with suppliers is important for your dental practice’s finances. Getting better deals on dental supplies can lower your costs and increase profits. Here are some tips to help you negotiate and get the best deals:

Research prices: Before negotiating, know the market prices for the supplies you need. Compare different suppliers’ prices, quality, and reputation. This knowledge will help you during negotiations.

Build relationships: Having good relationships with suppliers can help you get better deals. Communicate with them regularly, give feedback, and show you’re a loyal customer. Suppliers are more likely to negotiate and offer better prices when they value your partnership.

Bundle purchases: Combine your orders and buy multiple supplies from the same supplier. This gives you more negotiating power. With larger orders, you can ask for bulk discounts, free shipping, or extended payment terms. Suppliers often appreciate long-term, high-volume customers and may give you better deals.

Be ready to walk away: Negotiations involve give-and-take. If the terms don’t meet your goals, be prepared to walk away. This shows you’re serious about getting the best value. It may make suppliers reconsider their offers.

Consider other suppliers: Don’t limit yourself to one supplier. Research and contact multiple suppliers to find better deals. Competition among suppliers works in your favour, as they may offer lower prices or additional benefits to win your business.

Remember, negotiating isn’t about demanding lower prices aggressively. It’s about finding solutions that benefit both parties. By following these tips, you can improve your negotiation skills and save money on dental supplies for your practice.

Action Point

To boost your dental practice’s financial health, thoroughly review expenses and identify savings opportunities without compromising care quality. Consider negotiating better supply deals, optimizing staff schedules, and utilizing technology for efficiency. Regular financial evaluations and strategic adjustments can lead to significant savings and enhance profitability.

Consider group purchasing organisations (GPOs): Exploring the benefits and savings of joining a buying group

When running a dental practice, saving money is important. One way to do that is by joining a group purchasing organisation (GPO).

A GPO negotiates discounts with suppliers for its members, like dental practices. By pooling together the buying power of its members, a GPO can secure big discounts on dental supplies and equipment.

Joining a GPO can save you a lot of money. As a member, you get access to the discounted rates they negotiated, which helps you stretch your budget. This means you can spend more on other important things for your practice.

GPOs also offer a wide range of products from different suppliers, so you have more options at competitive prices. This is especially helpful when buying expensive equipment or specialised materials because the savings from the GPO can be significant.

Another benefit of joining a GPO is that it saves you time negotiating with suppliers. Instead of contacting suppliers one by one, the GPO handles the negotiations for you. This frees up your time to focus on providing good care to your patients.

Not all GPOs are the same, so it’s important to research and compare your options. Look at things like the range of suppliers they work with, the size of their network, and their reputation in the dental industry.

Joining a GPO can be a smart move for your dental practice. It gives you access to cost savings, a variety of products, and makes purchasing easier. By considering the benefits and savings of joining a GPO, you can make informed decisions that will help your dental practice financially.

Action Point

For better deals on dental supplies, research prices, build relationships with suppliers, bundle purchases, be willing to walk away, and consider multiple suppliers.

Join the Samera Alliance Buying Group

The Samera Alliance is our growing network of dentists, practices and leading industry suppliers, designed to help you save money, grow your profits and build a better dental business.

Join today for free to be a part of our dental buying group, which gives you access to exclusive discounts and offers on the consumables, equipment and products you need to run a successful dental business.

You’ll also get better rates and terms for a wide range of services like HR, IT, utilities, insurance, legal services and much more!

Embrace technology: How implementing digital solutions can save you money in the long run

Using technology can be a game-changer for your dental practice. It helps make things easier, saves time, and can even save you money in the long run.

One area where technology can help is in managing your patients. With a cloud-based practice management software, you can store patient records, appointments, and billing information digitally. This means you don’t have to print as much paperwork or spend money on storage. It also saves you time because you don’t have to manually enter data. Plus, these systems can send automated reminders and help with scheduling, which reduces missed appointments and cancellations.

Another way technology saves money is with digital imaging equipment. Traditional X-ray films are expensive and take up space. But digital X-ray systems give you instant, high-quality images without the need for film. You don’t have to buy film or deal with developing and disposing of it. Although the initial cost of digital equipment may seem high, you’ll save money in the long run by not having to buy film or maintain it.

Using telehealth solutions can also help you save money. You can do remote consultations and give advice through video calls or telemedicine software. This means patients don’t have to travel, which saves them money. It also reduces your overhead costs.

Technology can also help with marketing. Having a good website and active social media profiles can attract new patients and strengthen relationships with existing ones. You can also do digital marketing campaigns like targeted emails or online ads to reach your desired audience without spending a lot on advertising.

In conclusion, technology has many benefits for your dental practice, including saving money. By using digital solutions for patient management, investing in digital imaging, embracing telehealth, and using digital marketing, you can improve your practice, take better care of your patients, and increase your profits.

Action Point

Implement digital solutions like practice management software, digital imaging, telehealth, and digital marketing to streamline operations, reduce costs, and improve patient care, ultimately saving money for your dental practice.

Train your staff: Investing in education and training to improve efficiency and reduce expenses

Investing in education and training for your dental staff is important for improving your practice’s efficiency and reducing expenses. When your staff is well-trained, they perform their tasks better and create a positive experience for patients. This can lead to more patients staying with your practice and referring others.

Provide opportunities for ongoing education and training to expand your staff’s knowledge and skills. They can attend conferences, participate in webinars, or take specialised courses. When they stay updated on industry trends, techniques, and technologies, they can provide the best care to your patients.

Training shouldn’t only focus on clinical skills but also administrative tasks. Efficient scheduling, billing, and record-keeping processes can make your practice more productive and profitable. Training your staff on practice management systems or hiring experts to teach them can streamline these processes, reduce mistakes, and save time and resources.

A well-trained team can handle emergencies and unexpected situations effectively, reducing the need for expensive external help. By giving your staff the right knowledge and skills, they can confidently and efficiently handle different scenarios, saving your practice time and money.

Investing in your staff’s professional development can also boost their morale and job satisfaction. This leads to lower turnover rates, as happy employees tend to stay longer. Keeping experienced staff members saves you recruitment and training costs and ensures consistent care for your patients.

Remember, education and training should be ongoing. Encourage your staff to continuously seek learning opportunities and ways to improve. By investing in their growth, you are investing in the success and financial stability of your dental practice.

Action Point

Invest in your dental staff’s education and training to improve practice efficiency and reduce expenses. This not only enhances patient care but also boosts staff morale, leading to lower turnover and recruitment costs, ultimately saving money for the practice.

Click here to read more about building a dental team.

Maintain your equipment: Tips for proper maintenance and avoiding costly repairs or replacements

Taking care of your dental equipment is important for your practice’s smooth operation and saving money. Neglecting equipment maintenance can lead to expensive repairs or replacements. Here are some simple tips to keep your dental equipment in good condition:

Follow the manufacturer’s guidelines: Read and understand the maintenance instructions provided by the manufacturer for each piece of equipment. Clean, lubricate, and calibrate them regularly as recommended.

Create a maintenance schedule: Make a schedule to keep track of when each equipment needs attention. This can include daily, weekly, monthly, or yearly tasks depending on the equipment. Following a schedule helps prevent issues and catch problems early.

Train your staff: Make sure your staff knows how to use and maintain the equipment correctly. Teach them to recognize warning signs of equipment problems. Encourage them to report any issues promptly.

Use quality tools and materials: Invest in good-quality tools and materials for your practice. Cheaper alternatives may save money at first, but they wear out quickly and need frequent replacements. Durable equipment lasts longer and saves money in the long run.

Regular inspections: Check your equipment regularly for signs of wear, tear, or possible problems. Early detection helps prevent major repairs.

Consider professional servicing: Along with regular maintenance, schedule professional servicing for your equipment. Professionals can inspect, clean, and optimise the performance of your dental equipment.

By following these tips and prioritising equipment maintenance, you can avoid expensive repairs or replacements. Your dental practice will operate smoothly and efficiently, saving you money. Remember, prevention is better than cure when it comes to your dental equipment!

Action Point

Maintain your dental equipment regularly to prevent costly repairs or replacements, ensuring your practice operates efficiently. Follow the manufacturer’s guidelines, create a maintenance schedule, train staff, use quality materials, perform regular inspections, and consider professional servicing. Prioritizing equipment maintenance saves money and keeps your practice running smoothly.

Explore financing options: Understanding dental practice loans and other financial resources to help manage expenses

As a dental practice owner, it’s important to manage your expenses well to succeed and make a profit. One way to do this is by exploring different financing options available to dental practitioners.

Dental practice loans are designed specifically for dental professionals like you. They provide funds to cover expenses such as buying equipment, renovating your office, upgrading technology, or even acquiring a practice. With a dental practice loan, you can manage your cash flow and invest in the growth of your practice.

When considering a dental practice loan, research different lenders and compare their terms and interest rates. Look for lenders who specialise in dental practice financing, as they understand the industry better and can offer solutions that suit your needs.

Another option is equipment leasing. Leasing dental equipment helps you save your working capital while still getting access to the latest technology and equipment you need for your practice. Leasing spreads out the cost over time, making it more affordable and manageable for your cash flow.

Besides these financing options, look into other sources of financial assistance. Some dental associations and organisations offer grants or scholarships for dental professionals. These can help with expenses or fund continuing education. Also, there may be government programs or incentives to support dental practices, so stay informed about any financial resources that can benefit your practice.

By exploring these financing options, you can manage your expenses and ensure the financial stability of your dental practice. Carefully evaluate each option, consider your long-term goals, and consult with financial professionals who specialise in dental practice management to make informed decisions for your business’s financial health.

Action Points

Explore financing options for your dental practice, including specialized loans and equipment leasing, to manage expenses and invest in growth. Research lenders, compare terms, and consider additional financial resources like grants or government programs. Consult with financial professionals to make informed decisions for your practice’s financial health.

Please click here to read our guide to financing a dental practice.

Review your insurance policies: Ensuring you have the right coverage at the best rates

It’s important to review your insurance policies to manage the financial health of your dental practice. Dental practices have unique risks and liabilities that require special coverage, so it’s crucial to make sure you have the right policies in place to protect your practice and patients.

Start by looking at your current insurance coverage. Check your general liability insurance, malpractice insurance, property insurance, and workers’ compensation insurance, among others. Understand what risks are covered and what may be missing by reviewing the terms, limits, and exclusions of each policy.

Get quotes from different insurance providers or brokers for the same coverage. Comparing rates from multiple insurers helps you find the best rates without compromising on the coverage you need. Ask about any discounts or customised packages available for dental practices.

As you review your insurance policies, consider any changes in your practice’s operations or services. If you’ve added new procedures, expanded your office space, or hired more staff, you may need to adjust your insurance coverage. Keeping your policies up to date ensures you have enough protection.

Consider working with an insurance professional who specialises in dental practices. They can provide valuable advice on the specific risks and coverage options for your industry. Their expertise helps you understand complex policy terms and make sure you have adequate protection at the best rates.

Remember, insurance is an investment in the long-term financial stability of your dental practice. Regularly reviewing your policies and getting the right coverage at the best rates helps protect your practice from unexpected events and can save you a lot of money.

Action Point

Review your dental practice’s insurance policies regularly to ensure you have comprehensive coverage tailored to your unique needs. Compare quotes, adjust policies for any changes in operations, and consult with specialists. Proper insurance safeguards your practice’s financial health.

House brands vs name brands

House brands are a great alternative for some more expensive name brand products. If you do your research correctly, most types of dental consumables have the same, if not very similar, ingredients and often most are manufactured by the same companies. The biggest difference is the price point. However, this is not the case with all house brands, the cheapest brand is not always the least expensive.

Branded PriceOwn BrandPrice
4% 1:100,000 2.2ML LATEX-FREE£26.75BARTINEST 1:100,000 2.2ML ANAESTHETIC£22.96
ALCOHOL FREE JUMBO WIPES REFILL£8.50UNODENT ALCOHOL-FREE WIPES£2.86
BRUSH REFILL REGULAR ASSORTED£30.24MICRO APPLICATOR BRUSH REGULAR – MIXED£4.40
UNIVERSAL SPRAY (NO NOZZLE)£23.00UNOLUBE UNIVERSAL SPRAY£4.27
Aspirator Cleaner £28.99AUTORINSE DAILY ASPIRATOR CLEANER£12.64

Sometimes the price of some things you need matches the hefty price attached to it. Buying cheaper branded items when it comes to non-critical items such as disposable barriers and cotton rolls is a good way to save money. Those products will make very little difference to you or your patients. However, when it comes to anything that is a bit more valuable and you are debating it over, it’s worth weighing up the pros and cons. Does the price justify the usage of the product? When it comes to anything that will aid you in diagnosing, treating or restoring, save yourself the trouble and opt for a more reliable brand to buy from.

If you join a dental buying group you can still purchase these more expensive items at an exclusive, more competitive price – just for being part of the group!

Loyalty rewards: Get rewarded for your business!

Many companies offer rewards or loyalty programs, so pay attention to what is out there for you to benefit from. Company representatives often know all the tricks, so sometimes it’s worth talking to them so they can teach you how to order more effectively. Sometimes you can take advantage of special programmes and free products or loyalty awards that many distributors offer.

Keep in mind that none of this will happen automatically, you will need to take the time to find how to get the most out of what is available.

Action Point

Maximize savings by utilizing loyalty rewards and programs offered by suppliers. Engage with company representatives to learn effective ordering strategies and take advantage of special offers, free products, or loyalty awards. A proactive effort is required to benefit from these opportunities.

Understanding the dangers of ‘false economy’

The truth is, the steps you take in starting to save money can actually become an expensive venture. A great example of this is that perhaps it is a lot cheaper for you to have an automatic answering machine for your calls, rather than employing a full-time receptionist. However, if you consider patient experience, your reception is often the first point of contact with your business.

In other words, a good receptionist with excellent customer service skills is worth every penny you invest in them, even though they may not be the cheapest option.

This is very similar to dental equipment. While buying cheaper consumables that have similar ingredients and manufacturers may be worth buying, looking at the cheapest price of dental equipment may not tell the same story.

We hope our blog post about saving money in your dental practice was useful to you. Running a dental practice can be costly, but there are ways to save money without sacrificing care quality. By following the tips we mentioned, like talking to suppliers, managing your inventory well, and getting the most from your insurance reimbursements, you can save a lot of money and make your practice more profitable. Remember, every pound you save can be used to improve your practice or provide better care to your patients.

Action Point

Recognize the importance of value over cost. Opting for cheaper alternatives, like an automated answering service, may save money initially but can negatively impact patient experience. Similarly, while inexpensive dental consumables might seem appealing, investing in quality equipment ensures better service and long-term savings. Prioritize investments that enhance patient satisfaction and practice efficiency.

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

How Should a Dental Practice Organise its Finances

Dental Business Guide Podcast Episode | 2nd February 2021
George Bellamy and Arun Mehra

Money Matters: Organizing Finances for Dental Practices  

Running a successful dental practice is more than just providing great dental care. It also involves managing money effectively. As a dentist, you need to keep track of your finances to make sure your practice makes a profit. Handling your money isn’t easy, especially when you have to balance taking care of patients and managing the practice’s finances.

In this article, we will talk about some tips and methods to help you organize and handle your finances better. We’ll cover everything from creating a budget and tracking expenses to looking at financial reports and managing your income. We’ll go through all the important steps to help you understand the financial side of your practice and run a successful dental business.  

Action Point

Organizing finances is crucial for running a successful dental practice. This article will provide tips and methods to help dentists manage their finances effectively, including budgeting, expense tracking, financial reporting, and income management, to ensure a profitable dental business.

Read more about the benefits of cloud accounting software.

The importance of organizing finances for dental practices

If you own a dental practice, you’re probably busy with lots of daily tasks like seeing patients, managing staff, and making sure everything runs smoothly. Sometimes, you might forget how important it is to plan your practice’s money.You’re not just the principal dentist, you’re a business owner. Organizing your finances well is highly important for your practice to do well and grow over time.

Being organized with your money helps you understand how your practice is doing financially. You can figure out where you’re making money and make smart decisions that help your practice make more money. It’s like having a strong foundation to manage how much money is coming in, how much is going out, and how to make more.

Also, when your money is organized, it’s easier to follow the rules about taxes and other legal requirements. If you keep good records and clear financial reports, you won’t get in trouble or have problems with mistakes.

Having an organized money system also helps you set goals for your practice, see how well it’s doing, and find ways to make it better. You can make important decisions, like buying new equipment or offering new services, based on what your financial info tells you.

By spending time and effort to organize your money, you can take care of your practice’s financial health and set it up for success in the long run. So, let’s dive in and explore the happy numbers that are waiting for you in the world of organized finances for dental practices.  

Action Point

Organizing finances is essential for dental practice owners. It helps you understand your practice’s financial health, make informed decisions, stay compliant with tax and legal requirements, and set goals for growth and improvement. By dedicating time and effort to financial organization, you can ensure the long-term success of your dental practice.

Contact us to find out more

Setting financial goals for a dental practice

Having clear money goals for your dental practice is really important to make it successful and lasting. When you don’t have clear goals, it’s tough to know how well you’re doing and if you’re improving. When you set money goals, it’s good to think about both short-term and long-term things you want to achieve. Start by looking at what’s happening right now. Check out how much money is coming in, how much is going out, and how much profit you’re making. This helps you understand where you are with money. Also, find out if there are any problems or risks you need to fix.

Next, figure out what you want to achieve with your money in the short term. Maybe you want to make more money, spend less, or earn more profit. Setting clear goals that you can measure and achieve over a certain time (like next month or three months from now) helps you stay on track and motivated. Think about things like getting more patients, how often leads are converted, and how much money each patient brings in. For example, you might want to get 10% more new patients in the next three months or improve how you talk to patients about treatments.

Action Point

Setting financial goals for your dental practice is crucial. Assess your current financial situation, establish short-term and long-term goals, and create a comprehensive financial plan to achieve them. Regular monitoring and adjustments will help ensure the growth and profitability of your practice.

Besides short-term goals, it’s also important to set long-term money goals that match your vision for your dental practice. These goals could be about growing your practice, buying new and better equipment, or making a certain amount of profit in a few years. Remember, your money goals should be realistic and possible to achieve. While it’s good to challenge yourself and aim for growth, setting goals that are too hard might be setting yourself up to fail. Keep checking and changing your goals as your practice gets bigger and things change.

Lastly, it’s super important to make a big plan for your money to help you reach your goals. This plan should cover how you’ll make money, spend money, pay off debts, and invest. Checking your money regularly and making changes when needed helps you stay on track to reach your goals. When you set clear money goals for your dental practice, you build a strong foundation for success. This helps you make smart choices that make your practice grow and make more profit.  

Tracking revenue and expenses effectively  

Keeping a close eye on the money that comes in and goes out is really important for any dental practice that wants to be good at managing their finances. By paying attention to these numbers, you can learn important things about how your practice is doing financially and make smart choices to make more money.

To start with, it’s really important to have a good system for recording and sorting out all the money you get and spend. You can do this using specialist software made for dental practices, or you can work with a professional who knows how dental practices work. Keeping up-to-date financial records means you can make accurate reports that show you how well your practice is doing with money.

When you’re tracking the money that comes in, it’s a good idea to separate it into different parts, like payments from insurance, money from patients, and even income from selling dental products. This helps you see which parts bring in the most money and which parts might need some improvement.

Also, keeping a close watch on all the money you spend is important. Divide your expenses into different categories like supplies, equipment, rent, utilities, and salaries for your staff. This helps you find out if you’re spending too much in some areas and where you might save money.

Checking important financial reports regularly, like statements that show your profit and loss, your financial status, and how money is moving in and out, gives you a good overall view of how well your practice is doing financially. These reports help you see patterns, find any mistakes, and make choices based on facts to make more money.

It’s also a good idea to set financial goals for your practice and keep track of how you’re doing. By setting clear goals, like making more money or spending less on certain things, you can see if you’re doing well and change things if needed. In short, keeping a close watch on the money that comes in and goes out is really important for dental practices to manage their finances well. By using good systems, recording everything correctly, and regularly looking at financial reports, you can learn important things, make smart choices, and work towards reaching your money goals.  

Action Point

Effective tracking of revenue and expenses is crucial for dental practices. Use specialized software or professional help for accurate financial records. Categorize income and expenses to identify trends. Regularly review reports for insights and set financial goals to stay on track.

Implementing a bookkeeping system for accurate financial records  

Setting up a system to keep track of your practice’s money is really important for dental offices. This system helps you record the money you make and spend, and it helps you see how well your practice is doing financially. First, you need to choose the right software to help you with your money. There are different options, from easy-to-use programs online to more advanced ones. Think about how easy it is to use, if it works with your other systems, and if it can grow with your practice.

Once you’ve picked the program, you need to set it up right. Put in all the financial information, like what patients pay and what insurance gives you. Sort your spending into categories like supplies, staff salaries, rent, and advertising. This helps you understand your money better and find areas where you can do better. Updating your money records often is important to keep things accurate. Set aside time every week or month to put in new information, check that your bank statements match, and look at your money reports. This routine helps you have the newest info and make good choices based on real data.

Also, think about connecting your money system with other software you use to manage your practice. This can make your money tasks easier and reduce the chances of making mistakes. For example, connecting your financial system with your patient management software can automatically record patient payments, saving you time and effort.

Lastly, it’s a great idea to talk to a professional accountant or bookkeeper who knows about dental practices. They can help you set up your money system, give you advice on best money practices, and make sure you follow the right tax rules for dental businesses. By setting up a good financial structure, you not only keep accurate money records but also learn important things about how your dental practice is doing financially. This knowledge helps you make smart choices, improve how money comes in, and work towards long-term success.  

Action Point

Implementing an effective bookkeeping system is vital for dental practices. Choose the right software that suits your needs and integrates with other systems. Set up the program with accurate financial data and categorize expenses. Regularly update your records to ensure accuracy. Consider integrating your financial system with other practice management software for efficiency. Consulting a professional accountant or bookkeeper experienced in dental practices can provide valuable guidance. Accurate financial records enable informed decision-making and long-term success.

Understanding and analysing key financial ratios

Knowing and understanding important money ratios is really important for dental practices to keep their business healthy and successful. These ratios help you learn important things about how well your practice is doing with money and how healthy it is overall.

One important ratio to think about is the profit ratio. This ratio helps you see how well your practice is turning its work into profit. You can find it by dividing the profit you make by all the money you get. A high profit ratio means your practice is really good at making profit from the money it gets. But if the ratio is low, it might mean you need to find ways to manage costs better or make more money.

Another important ratio is the liquidity ratio. This ratio helps you know if your practice can easily pay its bills and debts. For example, the current ratio compares the money you have right now to the bills you have to pay soon. If the ratio is more than 1, it means you have enough money to pay your bills. If it’s less, it might mean you could have trouble with money soon.

Also, there’s the debt ratio. This ratio helps you understand how much of your practice’s money is borrowed. It compares how much debt you have to how much stuff you own. If the ratio is high, it means you’re using a lot of borrowed money, which could be risky.

Another ratio to look at is the accounts receivable turnover ratio. This ratio helps you know how quickly your practice is getting paid by patients and insurance. A higher ratio means you’re good at getting paid fast. A lower ratio might mean you have problems with how you collect money.

By understanding and keeping an eye on these important metrics, dental practices can make smart choices to make their money situation better. Regularly looking at these ratios helps practice owners find ways to do better, solve money problems, and make sure their business keeps doing well over time.

Action Points

Understanding key financial ratios is crucial for dental practices. The profit ratio shows how well the practice turns revenue into profit. Liquidity ratios measure the ability to pay short-term bills, with ratios over 1 being good. The debt ratio assesses debt reliance. Accounts receivable turnover indicates payment collection speed. Monitoring these ratios helps make informed financial decisions for long-term success.

Best practices for inventory management in dental practices

Keeping track of and managing the things you use in your dental practice is really important. This includes supplies and equipment. When you manage these things well, it helps your practice be successful. It makes sure you have what you need when you need it, and it also helps you control costs and reduce waste. Here are some good ways to manage your stuff in your dental practice:

Conduct regular audits: Look at your supplies and equipment often to see what you have and if anything is missing or old. This helps you know what you need to order, when you need to order it and what affect that will have on your cash flow.

Categorize and organize: Arrange and put your things in order so it’s easy to find and restock them. Use clear labels and storage solutions to keep everything organized and in good shape.

Set par levels: Decide how much of each thing you should always have based on how often you use them. This helps you avoid running out or even facing a shortage of any items and makes sure you always have enough for your patients.

Establish a reorder process: Make a simple process to order more supplies before you run out. Keep track of what you have and get automatic alerts when things are running low. This helps you avoid last-minute rushes to get more supplies.

Monitor expiration dates: Some dental supplies can expire, and using expired things can be bad for patients and wasteful. Check expiration dates regularly and use things before they go bad.

Utilize technology: Consider using special software or tools that help you manage your supplies. These tools can help you track what you have, make reports, and show you how much you need. They make it easier to manage your supplies.

When you follow these good practices for managing your supplies, it helps your dental practice run smoothly, take better care of patients, and use money wisely. With well-organized and well-managed supplies, you can focus on giving great dental services and make sure you always have what you need for your practice.  

Action Point

Efficient inventory management in dental practices involves regular audits, organization, setting par levels, establishing reorder processes, monitoring expiration dates, and utilizing technology. These practices ensure a well-stocked and organized supply system, promoting smooth operations and quality patient care.

Optimizing insurance billing and claims processing

A big part of making a dental practice successful is making sure insurance billing and claims are done right. Handling the money side of your practice well can lead to more money coming in, less paperwork, and happier patients.

First, it’s important to have a simple and organized system for billing insurance. This means checking if patients are covered by insurance before appointments, coding procedures correctly, and sending claims quickly. This helps you avoid problems with claims and makes sure you get paid properly. Using electronic submission for claims can make this even easier, reducing mistakes and saving time.

Also, it’s crucial to keep learning about the rules and changes in insurance. Regularly updating your knowledge about billing codes and ways to do things right can help you get more money from insurance and avoid problems with following the rules. Using good dental practice software can really help make insurance billing and claims easier. These software tools often have features like sending claims automatically, checking if patients are covered in real-time, and tracking claims. This makes sure you get paid correctly and on time. Also, it’s important to stay in touch with insurance companies. Building good relationships with them can help solve any problems or delays with claims quickly, which is good for your practice and your patients.

Finally, looking at your insurance billing and claims data regularly can help you see how your practice is doing with money. Finding patterns in claim problems, payments that are too low, or claims that were missed can help you fix issues and make sure you’re making enough money. By making insurance billing and claims better, dental practices can have more money, less paperwork, and give patients a smoother experience overall.

Utilizing technology for streamlined financial management  

In today’s digital world, using technology is essential to make money management easier for dental practices. The days of doing everything by hand and using paper records are gone. With the right tools and computer programs, dental practices can make their money tasks much easier, save time and resources, and also be more accurate and efficient.

One of the big parts of money management is keeping track of the money you get and spend. By using accounting software like Xero, dentists can easily record transactions, make money reports, and see how much money is coming in and going out in real-time. This doesn’t just give a good picture of how the practice is doing with money, but it also lets you make quick decisions based on correct and up-to-date information.

Another important technology to think about is digital payment systems. Giving patients the option to pay digitally not only makes things easier for them, but it also makes collecting payments smoother. When you connect online payment systems with the practice’s computer program, you can easily handle payments, keep track of what patients owe, and even remind them to pay. This makes things easier and makes sure payments are made on time. Technology can also help with billing insurance and dealing with claims. By using electronic ways to send claims and keeping track of them, dental practices can reduce paperwork, avoid mistakes, and speed up the process of dealing with claims.

Automatic tools that check if patients are covered by insurance can also help with accurate billing and fewer claim problems. This doesn’t just make the practice’s money situation better, but it also makes patients happier by reducing problems and delays with billing. Additionally, using cloud-based storage and systems to manage documents is a good idea. This helps store and organize money records, invoices, and receipts in a safe and easy way. It gets rid of the need for physical storage and lowers the risk of losing or damaging important documents. With cloud technology, authorized staff members can access financial information from anywhere, making teamwork easier and making sure everyone is on the same page.

To sum it up, using technology is key for dental practices that want to make money management easier. By using computer programs, digital payment systems, electronic claim submission, and cloud-based storage, dental practices can make their money tasks simpler, be more accurate, work more efficiently, and ultimately have more financial success.  

Regular financial reviews and seeking professional advice  

Checking your practice’s money regularly and getting expert advice are really important steps to understand and manage the money side of your dental practice. As a dentist, your main focus is on giving good care to your patients. But knowing how well your practice is doing financially is just as important. Doing regular money check-ups helps you keep a close eye on how much money is coming in and going out. It helps you find any possible problems and make smart choices to make your practice do better financially.

When you look at financial reports, like income statements, balance sheets, and cash flow statements, you learn important things about how much money your practice is making, how much it’s spending, and how well it’s doing overall. While doing your own money check-ups is important, getting advice from a professional like an accountant or financial advisor who knows about dental practices is really helpful. They can look at your money information, find areas where you can do better, and help you make a good plan to make more profit.

Also, a financial advisor can give you useful ideas about taxes, making budgets, and planning for the future. This helps you make smart choices to pay less in taxes, use money better, and be financially secure in the long run. Remember, staying on top of your practice’s money not only makes it financially healthy but also helps you give the best care to your patients. So, make sure you do regular money check-ups and get professional advice to understand and improve your practice’s money situation and find success in your dental practice.  

Handling the money side of a dental practice might seem tough, but with the right plans and steps, you can become great at managing the numbers that make people smile. We talked about things like keeping track of expenses and planning for equipment upgrades, which are important steps to take control of your practice’s money. By using these tips, you’ll make sure your practice is financially stable and ready to grow and succeed. Remember, having a well-organized money system is the key to a healthy smile, both for you and your patients.

Dental Accounts & Tax Specialists

As dental practice owners ourselves, we know what makes a clinic tick. We have been working with dentists for over 20 years to help manage their accounts and tax.

Whether you’re a dental associate, run your own practice or own a dental group and are looking to save time, money and effort on your accounts and tax then we want to hear from you. Our digital platform takes the hassle and the paperwork out of accounts.

To find out more about how you can save time, money and effort on your accounts and tax when you automate your finances with Samera, book a free consultation with one of our accounting team today.

Dental Accounts & Tax: Further Information

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11 Top Tips to Manage your Cash Flow in a Crisis

In times of financial instability, small businesses are usually one of the earliest and hardest hit. There are many issues that can arise from global uncertainty, but amongst the most problematic are disrupted cash flows.

A cash flow crisis can be caused by any number of factors. Disruptions to supply lines, a reluctant customer base or increased expenses.

In the midst of a global emergency such as the Covid-19 crisis, all of these factors can strike at once.

With a cash flow crisis looming for many small businesses, these top tips should help mitigate some of the risks and help manage the cash flow in your business.

Borrow money

One of the simplest ways to manage problems with cash flow in your business is to borrow money to cover the shortfall.

As long as your business has the required credit, you can borrow emergency funds in the form of a short-term loan from a number of different lenders.

You may need to secure your loan with business assets. Consumers are constantly being warned not to panic buy. Similarly, you as a business should not panic borrow!

Always shop around for the best price and seek expert advice when you need it so you get the best deal you can.

Although borrowing money can be a good way of covering unforeseen emergencies, it is not a sustainable fix if you have a prolonged or systemic cash flow problem.

If your cash flow problem is on-going and not caused by sudden, external changes, borrowing money will only delay an inevitable crisis. 

Action Points

During periods of financial instability, small businesses often face cash flow crises due to disruptions in supply chains, hesitant customers, or increased expenses. Amid global emergencies like the COVID-19 crisis, these challenges can intensify. To manage these risks, businesses can consider borrowing money through short-term loans, provided they have the necessary credit. However, while borrowing can address immediate needs, it’s not a long-term solution for sustained cash flow issues. It’s crucial to compare offers, seek expert advice, and explore other strategies to mitigate risks and safeguard business operations.

Man with credit card borrowing money online

Apply for a Bounce Back or CBILS Loan

If your business cannot avoid cash flow issues, you may need to obtain a loan to inject some cash into the business.

Although there are several avenues you can try, the UK Government are currently offering 2 loan schemes to struggling businesses – Bounce Back loans and the Coronavirus Business Interruption Loan Scheme (CBILS).

Coronavirus Business Interruption Loan Scheme (CBILS)

The CBILS was launched by the UK Government to provide financial support to small to medium enterprises who have been negatively affected by the Coronavirus and subsequent lockdown.

The scheme is only open to businesses based in the UK with an annual turnover of up to £45 million.

Under the CBILS, businesses can apply for support loans up to a value of £5 million.

However, to be eligible for support your business must prove that it would be financially viable if it were not for the current circumstances regarding COVID-19 and that it has been negatively affected by the virus and lockdown.

You will also need to prove that your business was not classed as a ‘business in difficulty’ on December 31st 2019.

CBILS loans are currently being offered through the normal lending channels.

You can apply by approaching your usual lending platform, such as the high street banks. Over 50 lenders currently participate in the CBILs, and this includes the main retail banks. 

Bounce Back Loans 

The Bounce Back loan scheme was recently introduced by the UK Government following criticism of the CBIL Scheme. Businesses have struggled to obtain funding under this scheme for a number of reasons.

One of the main reasons for this has been the information and documentation required, as well as the financial checks, to obtain the loan. Many businesses are being rejected for funding through the CBILS.

In response, the Bounce Back loan scheme has been launched as a simplified and quicker way for businesses to secure emergency funding. 

Through the Bounce Back Loan Scheme, businesses can apply for funding between £2,000 and £50,000.

The UK Government will guarantee 100% of the loan and you will not be required to pay any interest, or make any repayments during the first 12 months. Loan terms will be offered at up to 6 years. 

Small to medium enterprises who are based in the UK and have been negatively affected by the pandemic are eligible to apply. 

Like the CBILS, the Bounce Bank Loans Scheme is being offered through the regular financial lending channels, such as the major retail banks. 

Action Points

If your business is facing cash flow issues, consider applying for a loan through the UK Government’s schemes – Bounce Back loans and the Coronavirus Business Interruption Loan Scheme (CBILS). CBILS offers support loans of up to £5 million to UK-based businesses with turnovers up to £45 million, provided they demonstrate viability without COVID-19 impacts. Meanwhile, Bounce Back Loans offer simplified, faster funding between £2,000 and £50,000, with the government guaranteeing 100% of the loan and a 12-month interest-free period. Both schemes are accessible through regular lending channels, including major retail banks, and aim to provide relief to small to medium enterprises affected by the pandemic.

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Seek investment capital 

Similarly to borrowing money, you can seek investors who are willing to buy equity in your business.

Although this differs from borrowing money in that your business does not take on debt, it does mean that you will be giving up some level of control or ownership of your business – depending on how much capital you raise.

It is important to remember that you are in effect taking on a business partner. It is essential that you find the right partner to invest in your business!

Do not rush into any agreements, do your research on your potential partner and understand that this partnership may be permanent. 

Action Plan

Consider seeking investment capital as an alternative to borrowing money, where investors purchase equity in your business. While this avoids accruing debt, it involves relinquishing some control or ownership. Choose investors carefully, as they become long-term partners in your business. Conduct thorough research and ensure alignment of values and goals before committing to any partnership agreements, as they may be permanent.

Get paid quicker

Solving a cash flow crisis does not necessarily mean getting more money into the business.

You can also alleviate cash flow problems just by streamlining the flow of money within the business.

By making processes smoother and more efficient, you can more effectively move money through the business and ensure you have a steady cash flow.

One way to do this is to speed up how money flows into the business.

If you do not already have some form of online payments set up for your customers, you need to provide this functionality as soon as possible.

Not only do most consumers expect online payment as standard nowadays, instead payment can ensure you are not waiting on customers or banks for money you have earned. 

You can also start requesting deposits for payments. If you already request deposits, you may also think about increasing the amount.

Charging deposits means you get some instead, ready cash into the business for a product or service – even if it is not the full amount! 

Another way to speed up payments is to send your invoices earlier and more frequently than you would otherwise do.

Sending invoices immediately after services rendered decreases the amount of time you spend waiting on payment.

You can also negotiate to send incremental invoices over a period of time, rather than a final invoice upon completion of the service or product.

This will allow you to keep up a smaller, steady stream of funds within the business. 

Action Points

To improve cash flow, streamline processes for faster money movement. Offer online payments, request or increase deposits, and send invoices promptly. Negotiate incremental invoicing to maintain a steady cash flow. These strategies ensure a consistent flow of funds and mitigate cash flow challenges.

Pay money slower

Another way to improve your cash flow is to delay money leaving the business.

If you have regular expenses then you may need to think about renegotiating the payment structures you currently have in place.

If, at the moment, you pay for a particular service monthly, you may be able to revise this to a quarterly payment structure.

This can help buy time by letting you keep much needed money within the business until absolutely necessary. Do not pay bills and invoices until they are due.

Paying early may earn you goodwill (and you can use this to negotiate a better payment schedule), but it will not help you in a cash flow crisis. 

Contact your utilities providers (such as electricity and internet) and see if you can negotiate a better deal. Remember, most businesses want your business.

If you let them know you are thinking of moving to a competitor, they will usually try to get you a better deal to keep your custom. Try it out! 

Action Point

Delaying outgoing payments can help preserve cash flow. Renegotiate payment schedules to pay expenses less frequently, such as switching from monthly to quarterly payments. Avoid paying bills before they’re due, as this drains cash unnecessarily. Negotiate better deals with utility providers by leveraging competition. Holding onto funds longer ensures greater financial flexibility during cash flow challenges.

Ask for a payment holiday

Another way to reduce your monthly outgoings is to ask for a payment holiday from your lenders. This can include any financial institution to whom you currently owe monthly payments, such as your banks.

Some banks are currently offering 3 month holidays on certain loan terms, others are even offering 6 months! 

Of course, whether or not you can agree to a payment holiday will depend on your bank and your loan term.

However, many banks and financial lenders are being fairly generous and understanding at the moment so it is certainly worth trying! 

You can also try asking for a payment holiday from your landlord. Again, whether or not you can get your landlord to agree to a deferred payment will depend on your landlord and your ability to negotiate.

Like the banks, some landlords are being generous at the moment so it is worth contacting them and seeing if a deal can be reached. 

For instance, you may offer to pay monthly instead of quarterly to ease cash flow. Alternatively, you may ask to pay smaller amounts each month and agree to make up the balance when lockdown ends. 

It may be a long shot for some, but it is worth everyone trying!

Action Plan

Requesting payment holidays from lenders and landlords can ease financial burdens during tough times. Many banks offer three to six-month breaks on loan repayments while negotiating with landlords for deferred rent payments or adjusted schedules is also helpful. Proposing alternative payment arrangements, like monthly rent installments or partial payments with future settlement plans, may be advantageous. Though results vary, exploring these options can provide much-needed financial relief.

Smiling couple agreeing a bank loan

Explore alternative supply chains

Whilst you are trying to renegotiate prices with your suppliers for a better deal, you may also want to think about exploring different supply routes.

To take the Covid-19 crisis as an example; if some of your supplies come from China, you may want to think about finding an alternative source.

Not only do socio-political crises have huge impacts on trade and supply, consumers may also be put off by the idea of their goods coming from an affected region.

Try to make sure your products and resources are brought in via safe, stable and affordable supply chains. 

Increase prices

Another obvious way to improve cash flow is to increase the cash. One of the easiest ways to do this is to increase your prices for goods and services.

Naturally, a lot of small businesses are wary of increasing prices for fear of driving away customers.

This is especially true of newer businesses. If you have a reliable and returning customer base, you may be surprised at how many are willing to accept a price increase.

If your customers appreciate your business and what it offers, they will be willing to pay a little bit extra.

You can also make a big deal about lowering your prices again once the problem has subsided!  You could also offer a VIP or Gold Service option for your services or products.

By offering a little bit of exclusivity to your services, a small percentage of consumers will be willing to pay a large price for the VIP treatment. 

Make sure you do your research into your competitors. Do not price yourself out of the market and keep your business competitive. 

Action Point

Exploring alternative supply chains can mitigate risks during crises like Covid-19, ensuring stable access to resources. Increasing prices, albeit cautiously, can boost cash flow, with loyal customers often accepting moderate hikes. Offering premium services at higher rates and promoting eventual price reductions post-crisis can attract select clientele. However, competitive pricing adjustments are essential to maintain market competitiveness.

Cut expenses

A quick, easy win for solving cash flow problems is to cut unnecessary expenses. It is essential that you regularly review your business expenses even in times of calm.

In times of crisis, it is doubly important. There is no business out there that does not have unnecessary expenses. If you can find them and cut them, you can save yourself a lot of money.

Conduct a review of every single penny your business spends. Ask yourself; do I need to spend this money, or do I need to spend this much money?

Cutting expenses doesn’t have to mean ceasing entire initiatives. Saving a small percent in several areas can result in a huge savings.

Cutting down on lighting and heating when not being used, decreasing office supply wastage, limited employee expenses – a small reduction in several key areas can free up vital cash.

Try replacing costly measures with cheaper alternatives For instance, video meetings work just as well as face-to-face meetings without all the added costs like travel and refreshments. 

Action Point

Trimming unnecessary expenses is vital during financial challenges. Regularly evaluate all expenditures, identifying and eliminating non-essential costs. Even small reductions across multiple areas can accumulate into substantial savings. Consider cost-effective alternatives, like video meetings instead of in-person gatherings, to further curtail expenses while maintaining productivity. Prioritizing efficient resource allocation is essential for safeguarding cash flow and bolstering financial resilience.

Sell non-essential assets and reduce inventory

Most businesses own assets and most assets are necessary for the day-to-day running of the business. However, there will almost certainly be assets in your business that are non-essential and can raise much-needed funds. 

Take a full inventory stock of your business. Include everything the company owns and sort everything into essential and non-essential items.

Take a look at your non-essential list. Some of these assets you will be able to do without completely. In these cases, your best bet is to simply sell them.

You may end up selling for less than you bought the item. Although you want to try and get the best price you can, your goal is to free up cash, not turn a profit. 

If your business involves selling large quantities of items, you may need to think about reducing your inventory.

Make sure you factor this into your stock flow management to ensure you do not face a shortage of essential materials and goods. Try and keep as small of an inventory as possible to ensure your cash is not tied up, immobile in your stock. 

Action Point

Consider selling non-essential assets to generate much-needed funds during financial challenges. Conduct a thorough inventory of your business assets and distinguish between essential and non-essential items. Items deemed non-essential can be sold to free up cash, even if it means accepting a lower price than their original purchase value. Additionally, evaluate your inventory levels and consider reducing them to prevent excess cash from being tied up in stock. Maintaining a lean inventory ensures liquidity and agility in managing your business finances.

Balance sheet for cash flow management

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Do a Cash Flow Statement 

The best way to manage your money is to keep track of it and know exactly where it is at all times.

It is essential that you know exactly how much money is being brought into the business each month and, more importantly, where it is all going. 

The most efficient way to do this is to create a cash flow statement. By listing out every expense your business has, you will find it far easier to manage your money. 

Cash flow statements allow you to better identify where the majority of your money is going and the best areas of the business to make savings.

You may find that you are spending more than you thought in areas of the business you hadn’t considered, or in areas that could afford to be underfunded for a few months. 

Cash flow statements allow you to plan your budget, identify when you may need additional capital in the business and keep track of exactly how much money the business has.

By properly using a cash flow statement, you will be able to keep cash flow shortages to a minimum.

Action Plan

Craft a cash flow statement to monitor your business finances closely. This tool helps track cash inflows and outflows, providing valuable insights into spending patterns. By detailing expenses, you can identify areas to cut costs and prioritize expenditures. Use the statement to plan budgets, forecast capital needs, and maintain financial clarity. With diligent oversight, you can mitigate cash flow gaps and optimize resource management.

Download our cash flow statement template for free below:

How to use the cash flow template

By clicking the link below, you can download our template for a cash flow statement. With a few adjustments, this template can be adapted to be used by almost any business.

The template is currently filled in with example information to illustrate what a finished forecast may look like. Please feel free to delete these numbers and replace them with your business’s own figures.

To calculate your business’s incoming cash, please fill in the ‘CASH INFLOWS’ section with your gross turnover (including VAT), your standing debtors and the value of any furlough receipts you may have received from HMRC. Cells labelled ‘other’ have been left blank for you to include any other revenue streams.

To calculate your business’s outgoing cash, please fill in the ‘CASH OUTFLOWS’ section with your standing creditors and the various expenses currently listed. Again, cells labelled ‘other’ have been included for you to add any additional expenses you may have.

The forecast spreadsheet will then show you the net movement of your business’s in-comings and outgoings. By also entering in your starting bank balance, the forecast then shows your business’s cash balance at the end of each month for the next year.

Action Point

  • Download the template.
  • Replace example numbers with your business’s figures.
  • Enter cash inflows and outflows.
  • Review net movement.
  • Input starting bank balance.
  • Determine cash balance for each month.

Managing Cash Flow: Conclusion

As the effects of the Coronavirus crisis are felt throughout the world’s economy, businesses across the globe will feel the pinch. Cash flow will become problematic for all manner and size of business, so it is essential to be prepared.

Making small savings in several areas can result in a huge saving across the business.

Additionally, planning your cash flow with a cash flow template can help you identify and avoid problems before they happen.

If you are experiencing unavoidable cash flow issues, you may benefit from applying for one of the Government-backed support schemes.

Using these tips, you can try to save as much money as possible while ensuring the smooth operation of your company. 

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Join the Samera Alliance Buying Group

The Samera Alliance is our growing network of dentists, practices and leading industry suppliers, designed to help you save money, grow your profits and build a better dental business.

Join today for free to be a part of our dental buying group, which gives you access to exclusive discounts and offers on the consumables, equipment and products you need to run a successful dental business.

You’ll also get better rates and terms for a wide range of services like HR, IT, utilities, insurance, legal services and much more!

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

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Top 10 Tips to Help You Cut Small Business Expenses

Running a business costs money. Even with less expensive technology and marketing tools, somehow costs still manage to add up and unfortunately, these costs can continue to increase regularly. To help keep your profits up, you need to be able control your expenditures effectively and cut a few corners to help you save that extra pound here and there to decrease your overall expenditure. Here are ten ways to cut small business expenses

Start saving

Remember when our parents used to tell us to make sure we are saving at least half of our allowance, it is the same for business! It can be hard to think about putting money away while you have consistent cash flowing in and out.

But a good tip to try to save some money is to reserve a third of profits every month into a hard to reach bank account. This can then be used for an end of year tax bill for your dental practice or in the event you need cash for an emergency. This savings account can be your saviour when you have unexpected expenses, it will act as a surplus of cash sitting there without you having to rely on a loan.

Action Point

Saving money is essential for businesses, just like it is for individuals. While it may seem challenging to set aside funds when cash flow is consistent, it’s crucial for financial stability. A helpful strategy is to allocate a portion of profits, such as a third, into a separate savings account each month. This reserve can serve as a buffer for unexpected expenses or end-of-year tax obligations. By building up savings, your dental practice can avoid reliance on loans and have a safety net for emergencies.

Get points

When making big expenses, try to pay as much as you can on a point accumulating credit card. Cards such as American Express or British Airways Miles give you rewards when you spend with them. American Express points transfer into money while continuous spending with a BA card can convert points into miles and allow you to save on business trips.

Remember to be sure to pay your monthly bill so you don’t end up racking up any extra charges. No matter what sector your company is in, every business, including dental practices, has expenses. So, you might as well be earning while you are spending. 

Action Point

Maximize rewards by using point-accumulating credit cards for significant expenses, like American Express or British Airways Miles, but ensure timely bill payments to avoid extra charges, benefiting dental practices and other businesses alike.

Minimising Taxes

Keeping the taxman at bay is one of the most important tips we could ever give you. Minimising your tax bill can be the most beneficial way to improve your business expenses. Taxes are the one expense that cannot be avoided, but minimising them is a great way of working around this issue. This means maximising all your available business deductions in order to reduce your tax liability. 

Action Point

Maximize available business deductions to reduce tax liability, effectively minimizing expenses and improving overall financial health for your dental practice.

Keeping track 

The best advice we can give you is that when you stay on top of all your expenses and payments, you have control over your cash flow which is the best position you can be in. Even if you are slightly lacking in profits, the control you have over your outgoings will help you get on a path that will allow figures to get higher. 

You should also get into a habit of keeping track of all business expenses, that means every single one including keeping receipts. An expense that is often overlooked is vehicle mileage. If you are serious about cutting your expenses then you need to record the mileage you do for business purposes. 

Action Point

Maintaining meticulous records of expenses and payments empowers you to control cash flow, paving the way for improved profitability, while diligently tracking every business expense, including often overlooked items like vehicle mileage, is crucial for effective cost management.

You can download a free cash flow forecast tool here.

Make the most of your time

It is important to know the value of your time and to make sure you are using it efficiently. Many business owners swap time in an effort to save money. An example of this is when you are driving an hour to pick up supplies and stock to save on a £10 shipping cost.

By doing small things like this you are essentially saying your time is worth less than £10 an hour! Not to mention the fuel costs included. The hour you wasted driving could have been utilised in a better way for you to earn more money than the money you didn’t save, but lost in that hour. Efficiency leads to more productivity and profit. And it all starts with knowing your goals, being organised and having a plan. 

Many successful entrepreneurs begin their day with a morning routine that sets the day for productivity. Having a schedule and routine will help you time manage your life to keep you productive and efficient.

Finally, delegating and outsourcing. The weight of your entire business should not rest on your shoulders. There are ways to delegate and outsource certain jobs that do not have to be done by you. In order to improve efficiency, outsource certain business practices to a third party specialist.

It might seem like hiring an outside vendor will increase your costs, however, in the long run, delegating specific tasks to specialists can save you money and generate even better results by leaving you time to do what you do best. There are also cost effective ways to do this such as using apps and websites such as upwork or automation tools that can help you take care of your business needs while you have the time to focus on what you do best in your business.

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Switch to the cloud

For many businesses a great way to reduce capital costs and ongoing IT related expenses is to switch to cloud computing. Cloud computing will help your business thrive by optimising costs and improving efficiency. With cloud computing, the need to purchase and maintain expensive ongoing software updates and servers on site is diminished.

The cloud allows you to always have the latest versions of business applications and your cloud provider will be able to take care of most data recovering issues, hence freeing your business from worrying about the implications and expenses of complex IT disasters. 

Action Point

Transitioning to cloud computing not only reduces capital costs and ongoing IT expenses but also enhances efficiency by providing access to the latest software versions without the need for expensive on-site servers, while cloud providers handle data recovery, alleviating concerns and expenses associated with IT disasters.

Avoid interest charges

This is one of the most important tips we can give you. Before embracing small business financing options for your dental practice, or any sort of credit, you need to calculate the interest rates that you are going to accumulate. Every pound that you pay in interest is a pound that will not accrue to your net earnings. Before venturing to find any kind of capital that will incur high interest, try tapping into friends and family favours for interest-free start up capital! 

A great tip is to pay off your highest loan rate first. So any short term rate, high debt that you may have such as credit cards or short term loans, always pay this off before you land yourself in hot water. Otherwise, you will be accumulating higher and higher costs and interests which will result in you eventually paying out more than what is coming in. Staying on top of these costs will allow you to keep on top of profits and manage costs effectively. 

Action Plan

To maintain profitability and manage costs effectively, it’s crucial to avoid interest charges by prioritizing the repayment of high-interest debts, such as credit cards or short-term loans, and seeking interest-free startup capital from friends and family before resorting to small business financing options, as every pound paid in interest detracts from net earnings.

Raise fees

Raise your fees routinely. A 10% increase in fees can lead to a much larger increase in profits if your overheads are remaining constant. So always look at your prices on a very regular basis as this can make a huge impact on the profitability of your business.

Consider setting up a premium or VIP service in your business. A small percentage of your customers will be willing to spend a lot on a premium or exclusive service. Even a handful of customers paying for VIP products or services can result in a large profit.

Action Plan

Regularly reviewing and raising your fees, even by a modest percentage, can significantly boost profitability, especially if overhead costs remain stable, while offering premium or VIP services to a select clientele can generate substantial profits from a small customer base.

Pay invoices early

There are many vendors that offer small discounts to clients that pay invoices ahead of schedule. It is these discounts that add up at the end of each month showing you how much you can save. As long as paying early does not impact your cash flow negatively, it usually makes financial sense to do so and also gain personal credit with the vendors knowing that you are a standup customer. 

It is also very important to remember to always get free quotes for any big capital item you purchase as prices vary greatly amongst distributors. And you should do the same for small supplies that you do every month such as materials. Price Match products at least once annually. You will be surprised how much you will be able to save from comparing costs. 

Action Plan

Paying invoices early can lead to significant savings through vendor discounts, while obtaining free quotes for capital items and price matching small supplies can further reduce costs and improve financial efficiency.

Click here to read our article on Dentist and Dental Associate Expenses Guide

Cut costs

When you shop around to find deals you will be surprised at the difference in rates for the same products from different suppliers and providers. As a small business owner you are always looking for ways to optimise your resources and cut material costs, here are a few suggestions on how to cut small business expenses:

When it comes to wholesale supply costs, every penny saved is essentially a penny earned. If you are running a business that regularly makes a lot of wholesale supply purchases, getting the best deal on supplies can make a huge difference with your outgoings. As a business owner you need to be constantly monitoring supply costs and checking for discounts as well as alternative lenders with better prices.  

You can also cut advertising costs as there are now more potential customers online now than ever before. Advertising does not have to be expensive, you can start by simply creating an online presence through social media or a website. Direct email is another highly effective low-cost marketing solution. Publicity is free and a great low-cost way to build your credibility. Other great cost effective options include cold calling, carrying business cards and asking for referrals. 

Insurance is an expense that no business can evade, you cannot afford to avoid spending money on insurance. However, increasing your deductible is one way to reduce your premiums. Just be sure that the amount of your deductible is not higher than what your business can afford if you have to make a claim. If you are a member of a professional organisation or a big company, you may be able to take advantage of group rates. 

Action Point

Cutting costs through strategic monitoring of supply expenses, leveraging discounts, and exploring alternative suppliers, alongside adopting low-cost marketing methods and adjusting insurance deductibles, can significantly improve a small business’s financial health.

Click here to read our articles on Samera learning centre

More on how to cut small business expenses

In conclusion, within every business in our uncertain economy, every penny counts, even the smallest percentage off an entire invoice will save you money. The biggest aspect of managing your spending is managing your time.

As your business grows, understanding things like operating costs and cutting any unnecessary costs is going to become more and more important. Operating costs will allow you to take an in-depth look at how your expenses are impacting your profits. Once you start cutting unnecessary costs you can start boosting profits.  

You can find more tips on how to manage your cash flow here.

Dental Accounts & Tax Specialists

As dental practice owners ourselves, we know what makes a clinic tick. We have been working with dentists for over 20 years to help manage their accounts and tax.

Whether you’re a dental associate, run your own practice or own a dental group and are looking to save time, money and effort on your accounts and tax then we want to hear from you. Our digital platform takes the hassle and the paperwork out of accounts.

To find out more about how you can save time, money and effort on your accounts and tax when you automate your finances with Samera, book a free consultation with one of our accounting team today.

Dental Accounts & Tax: Further Information

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Financial Tactics During a Cash Flow Crisis

In this webinar, filmed during the first lockdown, Arun discusses vital financial tactics that you need to be taking to manage your cash flow in a crisis.

Click here to read our article on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Managing Your Cash Flow in a Crisis

In this webinar, filmed during the first lockdown, Arun discusses tough decisions every business needs to make in a crisis to manage their cash flow.

Click here to read our article on How to finance a healthcare business.

Surviving a Financial Crisis

Our healthcare business consultants are experts at helping medical health providers and their businesses survive a financial crisis. We can help with cash flow management, raising finance and optimising your accounts and tax structure.

Book a free, no-obligation consultation with one of our team to find out more about how we can help you and your business.

For more information financial crises and your business, including more articles, videos and webinars check out our Learning Centre here.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Financial Tips for Dentists

Arun’s 11 Financial Tips for Dentists that can lead to Financial Freedom

It shocks and saddens me when I see many young, energetic dentists excited about their careers but really managing their hard earned cash through poor advice.

It’s well known upon University graduation, Dentists are amongst the highest earners, but I have seen with my own personal eyes the poor judgement that many dentists use in managing their money.

A flash car, or a new fancy handbags may give short term satisfaction, but within a week or two, many wonder why they have bought the item in the first place and quite possibly regret trying to keep up with the Jones’.

My name is Arun Mehra, and for almost 20 years my accountancy firm has been working with Dentists. I married a Dentist, Smita Mehra (owner of the The Neem Tree Dental Group) back in 2001 and since then I have helped 1000’s of dentists across the globe with their business and finances.

I have been around the block a few times, and just like you, I do like to enjoy what life has to offer, but never at the cost of keeping up with the Jones’s. In this blog post I have put together some financial tips for dentists.

Financial Freedom for Dentists

The key to serious financial freedom is investing in opportunities that build you a passive income, and not wasting money on pointless things that have no real impact on your life. Earning money is hard work, so why waste it so frivolously?

This blog post is all about what you should be, and shouldn’t be doing in terms of your money. So, here are my top financial tips for dentists.

Rule 1 – Never try and keep up with the Joneses.

Who cares if your colleagues or friends have the latest car or newest piece of tech, don’t judge your situation on what they have or are buying. Look at your own finances, and then make the judgement of, can you afford it? And if you can, what will it bring to you?

Rule 2 – The curse of Instagram.

If we all believed what we saw on Instagram, it would appear that everyone is a billionaire, living the high life everyday.

They are not, it’s simply them trying to show off to others that they have made it. Some may have, but most haven’t.

Ignore what you see people buying on Instagram, or better still turn it off. If you do want to use it, don’t believe the hype, do your own research and take everything you read or see with a pinch of salt!

Rule 3 – Flash cars

There are various forums across Social media that show the latest flash car that your mate or colleague is buying.

Don’t be tempted unless you are a serious car dealer as buying the latest flash car is tantamount to financial nonsense.

Yes, the cars look lovely and shiny, but its not a financial investment and once you have driven it out of the fancy showroom it will lose at least 20% from what you paid for it.

I appreciate you may need a car, but does it need to be over £75,000 with all the trimmings? Probably not.

Rule 4 – Tax is inevitable

Don’t believe the hype that you can drastically reduce or eliminate your tax bill. My firm has picked up the remnants of many a dentist who has been easily persuaded to invest in various schemes over the years to reduce their taxes.

In truth, most never work, and be careful who actually advises on such schemes. Tax schemes very rarely work and often come back to bite – with a vengeance.

Contact us to find out more

Rule 5 – Pay for proper professional advice

You may find this difficult, but pay for the best advice possible from the right professionals – if you pay, you will get the right advice on most occasions.

I happily pay lawyers, tax advisors, surveyors and others when I need them, so I get the best result for whatever I am trying to do. If you need some support from our professional dental accountants click here.

If you don’t pay, and try and take shortcuts, it usually comes back to bite.

Rule 6 – Cut your coat according to your cloth

Yes this old Chinese proverb still stands today, with the free availability of credit to all.

Don’t get sucked in (see rules 1 and 2 above) and apply a degree of sense when spending your hard earned money.

Rule 7 – Save every month

Yes I know it’s boring, and interest rates are low, but always save something every month.

Set up a direct debit that goes into a hard to reach bank account so you cannot access it, and if you ever need cash for an urgent situation or say a deposit for a house or dental practice, you have it and you don’t have to go asking elsewhere for help.

Bottom line, start saving.

Rule 8 – Get onto the property ladder

If you can afford to, and assuming you have enough savings, try and get on to the property ladder, either as a homeowner or an investor. Over time, assuming the market is rising, you should build equity in your properties which can help in many ways over the long term.

Use your income to pay off the mortgage, whilst regularly re-financing every few years seeking a better deal.

Rule 9 – Pay off expensive debt

If you use a credit card pay the balance off EVERY month, DO NOT just pay the interest, pay the whole balance off.

Don’t get yourself into a situation where the interest keeps accumulating each month, this is a recipe for financial disaster as the interest rates charged are compounded each month increasing the amount you need to pay each month. At such high rates, the financial situation can get dire – so don’t’ get into such pickle in the first place by only spending what you need to spend (see rule 6)

Rule 10 – Tax Free Saving

Yes, again it sounds dull, but utilise you annual ISA allowance, it’s a great way to save in a tax-free wrapper and you should try to use this every year.

Rule 11 – Buy or build your own practice but be SMART

Many Dentists I meet entered the profession so they could run their own business. I strongly advocate becoming a business owner, but don’t rush it and most definitely seek advice from the right people (see rule 5 above) who can help you achieve your goal.

Keep your emotions at the door, and make a sensible purchase rather than one that is based on the emotion having to have a practice at any cost. I have seen too many dentists buy at too high a price and regret it for many years.

Be Smart.

Click here to our articles Samera learning centre.

Join the Samera Alliance Buying Group

The Samera Alliance is our growing network of dentists, practices and leading industry suppliers, designed to help you save money, grow your profits and build a better dental business.

Join today for free to be a part of our dental buying group, which gives you access to exclusive discounts and offers on the consumables, equipment and products you need to run a successful dental business.

You’ll also get better rates and terms for a wide range of services like HR, IT, utilities, insurance, legal services and much more!

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.