An annual internal audit can be an effective tool for the growth of your dental practice. Here are a few reasons why:
An audit can help you identify what is and is not working for your practice.
Many dental practices use accounting software but still may not be compiling or translating 12 months of financial records into easy-to-read statements. It is important to integrate systems to produce valuable summaries that are correct and easy-to-interpret. When you do, conducting an internal audit is not only effective, but it is also simplified, making it easy to identify what is and is not working best for your practice.
Still, there is no reason to make your bookkeeper's job any harder. With the right software integration, generating beneficial queries and reports is quick and easy. In fact, you may find the processes so simplified that you decide to conduct audits several times during the year instead of once annually.
An audit can confirm the accuracy of the reports that drive your vision.
Even if your generated reports are thorough, it never hurts to double check their accuracy. A yearly audit should confirm that the information used in your summary statements is correct, so you can plan strategically and successfully.
A third-party, unbiased review can lead to best practices for greater efficiency and more accurate results.
By allowing the fresh eye of a third-party auditor to review your accounting process, you are more likely to find better ways to avoid inaccuracies and ensure that your practice is progressing as it should.
An internal audit focuses on the following areas:
- Accuracy of patient information- Are there checks and balances built into your software systems?
- Analyses of the ways in which your data is processed- Is the processing efficient and effective?
- Fraud detection and internal preventive control measures- Are there measures in place to prevent fraud and limit access to sensitive data?
- Effectiveness of collection and billing processes- Are you receiving payments from patients and insurers in a timely manner?
An audit can increase your practice’s credibility with financial institutions.
Having an annual internal audit can help banks and insurers feel more comfortable about the fiscal health of your dental practice. This is important if you plan to use loans to expand your business or add more insurance coverage. In addition, the audit can help your practice be more desirable for incoming dental professionals as you increase the number of partners within your organization.
Although an annual internal audit is not free of charge, it is generally quite affordable and the assurance that it provides is priceless.
To manage your office data in a manner that makes auditing quick and easy while improving your workflow, efficiency and profits, contact Square Practice. We integrate financial data and practice management information into one environment so you can see every aspect of your business at a glance.