We’ve finally put 2020 behind us! Given the unprecedented obstacles of last year, we are all certainly anticipating what 2021 has to offer. As the new year marks a fresh start and new beginnings, let’s focus on growth and what that path will look like in the months ahead, specifically regarding your practice’s finances. So, today on the blog, our dental practice consultants share tips for refocusing your financial goals in 2021.
Take an honest assessment of your debts
All of the heartache and challenges that we faced last year did bring one good thing, lower interest rates. Now is a perfect time to refinance your business or personal loans. Taking advantage of lower interest rates means being able to pay extra toward your principal balances, or you stash the extra cash in your savings or retirement account. Ask your bank if they will consider offering a lower rate. In some instances, banks are more willing to do that than to risk losing a long-standing customer.
Establish goals for production growth
Let’s focus on production growth. Last year’s numbers are probably quite skewed, so you may also want to take into account 2019’s numbers as well. Gear up and get ready to hit the ground running in 2021. Many patients skipped routine and needed dental care last year out of fear of the pandemic. Insurance benefits have been renewed, and people are ready to start feeling somewhat normal again, including resuming routine doctor and dental visits. Set your production growth goals and establish ways to improve those numbers.
Jumpstart your marketing efforts
It’s not unlikely that you cut back or entirely put an end to marketing efforts last year in an attempt to save money. But a word from the wise, if you don’t have your patient’s attention, someone else will! Unfortunately, some practices have closed permanently, which means people are looking for new dentists. Put your practice name in front of them and on their minds by jumpstarting your marketing efforts. This can be done by maximizing your website SEO, offering a new service or new patient promotion that can be announced, or giving your social media a refresh by posting new, beneficial content for your followers.
Put back money for your golden years
Whether you’ve just started as a dentist or retirement is around the corner, always keep your nest egg in sight. Check your contributions. Are you still contributing? Do you need to increase your contributions because you lowered it during the shutdown last year? Keep an eye on your investments and how your portfolio is performing. Also, speak with a CPA to ensure you’re taking advantage of tax benefits so that you can maximize your contributions.
Stay ahead of the tax game
The first fiscal quarter has already begun, with the next one approaching within a couple of months. You don’t want to be left surprised! If you took out a PPP loan or received stimulus money, these factors could inflate your earnings from last year. Get with your CPA or financial advisor on a projected tax scenario for the next quarter so that you can avoid a surprise tax bill.
This year is full of new possibilities. While 2020 proved to be exceptionally difficult, we all came out stronger. Now, it’s time to get your finances in order for 2021, and you can start by following our advice from our blog today. If you would like to speak directly with one of our experienced dental practice consultants, call (877) 768-4799.
