The increase in accounting technology has paved the way for significant advancements in various industries, including dentistry. Cloud accounting, a digital innovation in the field of financial management, has gained substantial popularity due to its efficiency, convenience and cost-effectiveness. 

For dental practices, cloud accounting offers various benefits that can transform the way you manage finances. In this article, we look into how dentists can take advantage of Xero’s valuable features to reduce manual processes and increase efficiency. 

Questions to ask before adopting cloud accounting software

Although it can be tempting to run full steam ahead into using digital platforms for your accounting, it is also important to ask yourself some vital questions, including: 

Is your practice ready?

Many businesses (and dental practices) still use the tried and tested methods of traditional accounting. However, there is a risk of being somewhat left behind. 

The movement to digitising the tax world has evolved in recent years in the form of Making Tax Digital (MTD). Although MTD’s rollout isn’t yet applicable to limited companies, it still signifies the need to increase the readiness of your practice to embrace new digital services. 

Which software do I use?

At Hive, we truly believe that you go from zero to hero with Xero bookkeeping software. Alongside the many benefits for your core accountancy needs, integration with other useful systems such as HubDoc, Pleo and GoCardless can revolutionise the running of your practice. 

We go into further detail in our dedicated blog on building your tech stack, with some further information on apps that work with the Xero platform. 

Advantages of cloud accounting for your practice

Not quite sold on cloud accounting yet? We’ve outlined some of the benefits our clients have seen since making Xero a part of their practice: 

Streamlined financial management 

As traditional accounting methods often involve stacks of paper and manual data entry, there is an increased risk of human error. 

Cloud accounting eliminates these hurdles by allowing you to upload financial data, invoices and expenses directly to a secure online platform. This significantly reduces the chances of errors and ensures that your financial records are healthy, accurate and up-to-date.

Real-time access

Xero also provides dental practice owners with the ability to access their financial data in real-time from anywhere with an internet connection. This feature is particularly beneficial for practices with multiple locations or multi-practice owners. 

Whether you’re at the clinic, at home or attending a dental conference, you can log into Xero and review your practice’s finances, in turn enabling you to make informed decisions. 

Additional security for sensitive data

Data encryption, secure servers and two-factor authentication are all essential factors in determining the security of a website, platform or software provider and Xero is no exception. Security measures ensure that only authorised individuals can access your practice’s financial data. This level of security is often superior to the protection provided by traditional accounting systems.

Cost-effective 

Xero’s cloud accounting solution presents a cost-effective alternative to traditional methods. By removing the need for physical storage for paper documents, you can significantly reduce logistical and operational costs. Furthermore, Xero operates on a subscription-based model, spreading out costs and making it easier to budget for accounting services.

Potential for scalability and growth

As your dental practice grows, so do your financial needs. Cloud accounting systems are inherently scalable, adapting to the changing needs of your practice. 

With cloud accounting, onboarding new employees, expanding into new locations or offering new services can be achieved without the need for significant adjustments or disruptions in your financial management processes.

Considering the move to cloud accounting?

See how your practice can leverage Xero cloud accountancy software with our expert accountancy services. For more information about your practice needs, contact the Hive team.