Practice Protocol for Accounts Payable in a Dental Practice

In the dynamic landscape of practice management, recognizing key scenarios that prompt a re-evaluation of the current accounts payable process is crucial for maintaining financial resilience and operational efficiency. If you notice the following in your practice, it may be time to complete a thorough reassessment. As your practice forges new connections and expands its network of vendors, evaluations become imperative to ensure that the accounts payable process remains adaptable, scalable, and capable of navigating a broader landscape.

Scenarios for Re-Evaluation:

Increased Error Rates: If there's a noticeable rise in errors during the accounts payable process, it's a red flag that warrants a re-evaluation of the existing protocol.

1. Growing Vendor Relationships: As the number of vendors and transactions increases, reassessing the process becomes essential to ensure scalability and maintain accuracy.
2. Increasing Operational Costs: If managing accounts payable rises, it signals an opportunity to explore errors in billings or over ordering.
3. Technological Advancements: With the current availability of advanced financial tools available to streamline operations, it's prudent to re-evaluate processes to leverage the benefits of modern technology and stay competitive.

Adhering to a well-defined protocol ensures accurate financial transactions and establishes a robust framework for managing vendor relationships. We recommend the implementation of a comprehensive accounts payable practice for:

• Precision and Accuracy:
• Financial Control:
• Security and Compliance: *Efficiency Gains

Practice Protocol for Accounts Payable in a Dental Practice

1. Establish a Master Vendor List: Compile a comprehensive list of all vendors regularly used by the dental practice. Include vendor contact information, terms, and preferred methods of payment. Clearly indicate payment terms, specifying if the vendor is paid on a recurring basis or upon invoice receipt. Identify the preferred payment method for each vendor.

2. Ordering Process: Designate specific team members responsible for initiating and approving purchase orders. Implement a standardized requisition form to ensure clarity in product or service requirements. Set up a system for obtaining multiple quotes for significant purchases to ensure cost-effectiveness.

3. Receiving Process: Assign a team member to handle receiving goods or services and verify them against the purchase order. Implement a detailed inspection checklist to ensure the quality and quantity of received items. Immediately report and address any discrepancies to the vendor.

4. Invoice Verification: Have a designated accounts payable team member responsible for matching received goods or services with invoices. Cross-reference invoices with purchase orders and receive reports to ensure accuracy. Implement a three-way matching system (purchase order, receiving information, and invoice) to prevent discrepancies.

5. Approval Workflow: Set up a hierarchical approval process for invoices to ensure proper authorization before payment. Clearly define the authority levels required for approval, especially for high-value invoices. Use digital approval systems to streamline the workflow and maintain a clear audit trail.

6. Payment Process: Schedule regular payment runs to ensure timely payments and take advantage of any available early payment discounts. Use secure and traceable payment methods like electronic funds transfer (EFT). Maintain clear records of all transactions, including payment confirmations and receipts.

7. Segregation of Duties: Assign different team members where available, to handle ordering, receiving, and paying processes to prevent internal fraud. . Conduct periodic internal audits to ensure compliance with the segregation of duties. When limited with administrative team members are not able to segregate tasks, it is important to increase internal controls.

What tools can I use to assist in making Accounts Payable more Efficient?

Explore a variety of document management systems like Hubdoc or Dext, as well as online payment options through your bank or applications like Plooto. These tools are meticulously crafted to optimize and elevate the efficiency of your accounts payable process. As a result, you can relish the following benefits:

• Time Efficiency: By automating payments with Plooto, you slash the time typically devoted to manual processes, empowering your team to tackle more pressing tasks.
• Accuracy: Bid farewell to the pitfalls of manual check-writing, as Plooto's seamless and automated payment processes significantly diminish the likelihood of errors.
• Cost Savings: Embrace the financial perks of electronic payments, which often incur lower transaction costs than traditional check payments.

Implementing a robust accounts payable protocol, including a master vendor list and segregation of duties, is essential for maintaining financial accuracy, preventing fraud, and fostering efficient communication with suppliers. This protocol safeguards the practice's financial integrity and contributes to its overall operational effectiveness.