There is another way of looking at this scenario that sheds light on some of the true benefits of using a bookkeeper.  Let’s say that by outsourcing the bookkeeping, you are able to free up 2 more hours a month to see patients.   Assuming, on average, your production level is close to $400/hr, you will have not only made enough money to pay for the most expensive of bookkeepers, you will also have made a profit on the decision.  If you are preparing the books while the practice is open for seeing patients, then looking at using a bookkeeper is something that definitely should be pursued.

The analogy used above provides another great reason for hiring a bookkeeper.  Having a mechanic repair your car is going to most likely mean that the work gets done correctly and in an efficient manner (assuming an honest mechanic), when compared to doing the work yourself.  The same goes for bookkeeping.  A good bookkeeper is going to be able to do much more for your practice then record transactions in QuickBooks.  They are going to assist in reconciling the accounts receivable, ensure that invoices are paid on time, and aid in maintaining an appropriate cash level in the practice.  All of these things require context and understanding which can only be obtained though experience and expertise.  The things they can do for your practice will put more money in your pocket by avoiding paying extra penalties and interest, confirming patient collections make their way to the checking account in an efficient manner, and avoiding unnecessary overdraft fees.

There is yet another, more intangible definition of wealth, which will be generated by hiring a bookkeeper.  Time.  Even if the books for the practice were being prepared outside of normal business hours, you would be taking up your precious free time to do so.  Is that extra work worth the $600-$700/month you are going to save, by not hiring a bookkeeper?  Or would you much rather spend those weekends and nights with family, friends, or even a hobby like repairing your car?

Please feel free to give us a call if you find yourself trying to decide if a bookkeeper is right for your practice.

As reported in this month’s Mental Floss magazine, Gentry studied the body’s ability to kill cancer cells after learning how a lab mouse’s immune system had defeated cancer.  Since Gentry had a limited budget for her home lab, she bypassed the $12,000 professional-grade clean bench used for handling cells and instead created a $125 substitute made out of plastic with an attached HEPA air filter.

A friend of a friend who worked at a cancer lab provided Gentry some cancer cells.  Gentry learned on YouTube how to draw her own blood, and she purchased a centrifuge on eBay.  Her simple experiment looked at how her white blood cells responded to the introduction of the cancer cells.  Over a twenty-four hour period she could see under a microscope that her white blood cells surrounded the cancer cell and essentially caused it to explode.

She is among the first researchers to show clear evidence that our immune systems may play a vital role in fighting cancer.  She is certainly the first to conduct such research in her garage.

Eri Gentry provides valuable inspiration for all of us when we encounter red-tape and/or setbacks.  Our determination and ingenuity are typically more powerful than we imagine, and in many situations our inner drive is enough to topple the barrier in front of us.

I commonly witness this when I help dentists fine-tune their treatment presentation skills.  What is often lost in the review of exam findings is the patient.  A Chinese Proverb summarizes the problem and the solution: “Tell me and I’ll forget, show me and I may remember, involve me and I’ll understand.”

How do you involve your patients when you discuss dental treatment?  This is where the use of photos, models, and other visual aids is so important.

Remember that patients accept treatment recommendations when they understand the benefits—we buy benefits, not processes.  And nothing helps patients understand the benefits better than showing them.  Show your patients what concerns you.  When patients can see cracks or decay or other issues, they are far more motivated to take action than with your words alone.

But remember that involving and engaging your patients requires more than just what you show them.  How do you invite their questions?  How do you address their concerns?  Creating an environment where patients join the conversation is critical for helping patients understand your recommendations.  When patients understand where you want to guide them, they are much more likely to schedule.

Please recognize just how important it is to involve your patients during your review of findings.  And as you consider how to fine-tune your treatment presentations, remember to incorporate more show and tell.

Learn more about how our dental consulting helps practices increase treatment acceptance.

Descartes would act like a lot of people, asking questions to remove doubt.  When we’re on the receiving end of this it’s easy to assume the person is not interested or doesn’t trust us, when in reality it’s just how some people process decisions.

If a dental patient asks you if treatment is really needed, this push back does not signal retreat.  In fact, it signals “victory” is close.  Help remove lingering doubt, clarifying certain points, and / or restate your findings in patient-friendly language and you will guide patients to doing what is best for them.

Stand sincerely behind your treatment recommendations and resistance will often soften.  However, when dentists water-down what they know is the best course of treatment to try and accommodate perceived resistance, they often create more doubt.  Patients are incorrectly trained to believe they have to push back to get at what the dentist truly recommends—almost like you do when buying a car.

Patients have never needed more reassurance than they do right now.  Invite questions and do not cringe at the start of patient push-back.  Remember, the patient is actually extending you an invitation.  Use this opportunity to guide patients to the best course of treatment.

Learn more about how our dental consulting helps practices fine-tune chair-side presentations.

American businessman Roy Williams once said, “The first step in exceeding your customer’s expectations is to know those expectations.”  How often do you and your team ask about the patient’s priorities when it comes to treatment?

A few years ago I played the “fly on the wall” in a dental practice, observing exams and other patient interaction.  The dentist had a new patient in the chair who had not received any type of dental care for many years, and the patient had a laundry-list of needs.

The dentist was about to preview the treatment plan and lead the patient in a specific direction when he paused, remembering I was standing outside the operatory.  The dentist then asked the patient a simple question about treatment: “What matters most to you.”  The patient, who had an upcoming job interview, pointed to his chipped front tooth and said, “I’d like to get this fixed.”

Guess what the dentist recommended as the first priority.  And after the momentum was created by giving the patient what he wanted, it was much easier to schedule the next phases of the treatment plan.

Certainly in situations where acute pain is involved you may have to proceed differently.  But it is still important to ask your patients about their priorities.  Then you have a roadmap for how to exceed their expectations.

Learn more about how our dental consulting can help you increase treatment acceptance.

If you want to find a group that knows how to succeed at Plan B, look no further than those who help impoverished people in sub-Saharan Africa.  One such individual is Joshua Silver, an Oxford University physics professor who developed self-adjusting glasses.

One barrier to employment opportunities in sub-Saharan Africa is good vision.  There is only one optometrist for every one million people.  As reported in the recent issue of Mental Floss magazine, Joshua Silver has shifted to Plan B to help overcome this challenge.

Silver has invented glasses that allow the wearer to inject a clear silicone gel between two flexible plastic lenses, which creates inexpensive curved lenses matching most prescriptions.  The temples of the glasses come with a syringe of silicon on the side connected to the lenses, and the wearer snaps off the syringe after adjusting the glasses to fit his or her vision.  No optometrist is needed.  And the lenses are good for three years.

Silver has created these self-adjusting glasses for a price of just $25, and he hopes to make it even cheaper with future advances.  His goal is to distribute over one billion frames by the year 2020.  That’s quite a Plan B.

The next time you run up against a wall, do not become too discouraged.  That challenge may be the best thing that could have happened to you.  You may find out that your Plan B leads to many unexpected positive results.

The philosopher William James once said, “Act as if what you do makes a difference.  It does.” Therefore, one of the best ways to motivate yourself is to engage in activities that are aligned with matters most to you.

And these goals go beyond your dental practice.  If it is important to you to take care of your health, volunteer in your community, or coach your child’s basketball team, get involved.  You know from experience these activities nourish all parts of your life.

The ancient Greek poet Sophocles once said, “Always desire to learn something useful.”  When you talk with motivated people, they are always in the pursuit of learning something useful, whether it’s how to be a better gardener or how to speak a new language.  What would you like to learn?  What excites you?  The answer is your roadmap for what to learn next.

Finally, American businessman Victor Kiam once said, “Even if you fall on your face, you’re still moving forward.”  We all know that inaction is a big de-motivator, and when you think about it, inaction is the only real failure.  What is currently holding you back from setting yourself in motion?  We all know how invigorating it feels to pursue something that matters to us, no matter how challenging.

It’s hard to motivate others when we are not motivated.  Consider what you want from all aspects of your life, and then set yourself in motion.  Your own motivation will prove contagious to others.

A stock sale is the most beneficial to the selling doctor as the entire gain is considered a long-term capital gain (assuming ownership of more than one year).  Currently the federal long-term capital gains tax rate is 15%.  The highest ordinary tax rate is 35%. This is very favorable to the selling doctor.

The stock purchase is not favorable to the buyer as they do not get a current deduction.  It is basically the same thing as buying stocks on the NY Stock Exchange; no deduction at the time of purchase but it does create “basis”.  When the practice is sold there will be a gain or loss, which depends on the sales price less the basis.  Due to the fact that the stock sale is not favorable to the buyer it is not used often in practice transitions.

The other, more common, structure is the asset sale.  In an asset sale, the selling doctor keeps her corporation and the stock but sells everything in the corporation.  This would include supplies, equipment, furniture, goodwill and often times the accounts receivable.  These assets would be depreciated (expensed) over time.  Depreciation expense serves as a tax deduction for anywhere from 1 to 15 years (depending upon the asset type)

Even with an asset sale, allocating different amounts to the different asset types can change the tax result, so it is important to understand how each asset type affects the tax situation.  In the end, it will be a negotiation, but you will want to make sure you know how an asset allocation will impact your end of the deal.

For example, you may have a dental assistant who has a warm chair-side presence and who instantly puts patients at ease.  Your assistant enjoys talking with patients and patients frequently compliment her.  But, this same assistant struggles with ordering supplies and organizing the back office.  She is obviously more of a social thinker than an analytical thinker.  Is she an asset or a detriment to the practice?

What if your second assistant is strong on the analytical side—excels at ordering and having everything in place for each procedure—but she is somewhat shy around patients.  Is she an asset or detriment?

Maybe the assistants are good complements for each other.  Despite your frustrations, maybe you have a good mix on your team.

This is certainly a simplified example.  Many elements go into team chemistry and performance, one of which is the blend of personality types.  In the front and back office, you typically need a mix of social and analytical skills for successful performance.

It is important to remember that teams have a range of personality types, and this is usually a good thing.  Therefore, please keep in mind that some of the differences you are experiencing and some of the traits that can cause frustration are actually the personality of a good team.

Click here to learn more about how our dental consulting helps you build stronger teams.

Did you know the most popular six-digit password is “123456?”  In addition, when asked to come up with alphanumeric passwords, an alarming number of people simply supply a common word—sometimes “password”—followed by the number one.  Or they use their birth day, which is easy for a hacker to discover.

Hackers also know that people typically reuse passwords.  This means if someone discovers your email password, for example, they may be able to use the same one to access your sensitive financial or healthcare information.

This month’s issue of Consumer Reports magazine has a sobering article about password security.  The article discusses how hackers have extensive dictionaries of widely used passwords that makes it easy for them to crack common words, names, phrases, or facts that you might use for security.

And the length of the password matters as much as its complexity.  The article estimates with a basic computer and hacking software, it would take about 2 ½ hours to crack a seven-character password.  Cracking an eight-character password would take about 10 days.  A nine-character password would last about 2 ½ years.

What are some tips for improving password security?  Use longer passwords whenever possible.  Avoid obvious names, words, and phrases.  Mix numbers with characters.  Do not keep your password reminders near your computer.  And avoid using the same password twice.

Of course following these suggestions requires extra work.  But a little extra effort will help keep your personal and practice information secure.