Management accounts

Do you want a second hand Ford Fiesta or a Rolls Royce business? There should be no contest. Why think of your dental practice as a basic four wheel car when in your head it could be the King of the Road with you at the wheel ?

I've been advising dentists for more than 25 years and, in the past, most dental practice owners have seen their practice as a Ford Fiesta, wanting nothing more from their accountant than traditional year-end accounts. Most dentist clients have simply been interested in these accounts as a tool to determine how much tax they have to pay.

The general feeling seems to have been: 'Why do I need to spend time/money in preparing accounts other than once a year when I think I have a reasonable notion of how well I'm doing?'

My other clients (covering multiple types of operation) have generally appreciated the benefit of monthly (or quarterly) accounts to help them run their businesses. They are called management accounts because of the scope they give to keep your finger on the pulse of the business. Using management accounts, you can quickly identify where things are going wrong, or confirm that everything is on track.