Join the discussion on Facebook!TranscriptJonathan VanHorn:Welcome to the Tooth and Coin Podcast, where we talk about your adventure of being a dental practice owner. In these episodes, we're going to be talking about problems that you will likely face as a practice owner, as well as give an idea about actionable solutions that you can take so that you can get past this problem in your practice. Some of these concepts are really big ones, some of them are very specific, but we hope that these episodes help you along with your journey. Now, a very important piece for you to understand is that this is not paid financial advice. This is not paid tax or legal advice. We are not your financial advisors. We are not your CPAs. This is two CPAs talking about informational and educational content to help you along with your journey. It's a very important piece for you to understand.Jonathan VanHorn:Another thing that you need to know is, if you enjoy today's content, join us on the Facebook group. So we've got a Facebook group that is active with dentists, that is going to have content talking about what we're talking about today, to continue the discussion. Agree with us, don't agree with us, have a story to tell, have something to share? Join us in the Facebook group. If you go to Facebook and you search for Tooth and Coin Podcast, click on it to join it and be able to join us there. Finally, if you need some more help, we're developing a list of resources that are going to be centering around our topics of discussion, to be able to help you a little bit more than what the content is doing. So if you'd like access to that, whenever it becomes ready, all you have to do is text the word toothandcoin, T-O-O-T-H-A-N-D-C-O-I-N to 33444. Again, that's toothandcoin, all one word, no spaces, to 33444.Jonathan VanHorn:Reply with your email address, and we'll email you instructions on how to get into the Facebook group, as well as add you to the list, to be able to send you those resources when they're available. And if they're available, we'll go ahead and send them to you as well. So onto today's episode, hope you enjoy it. Hello ambitious dentist. Welcome to the episode that I'm probably going to call, Why Budgeting is a Waste of Time. It's a topic that I think is going to be confusing to some, why a CPA or an accounting person would talk about that, especially considering our last episode, we talked about how important it is to do on a personal level. But this episode, we're going to talk about the budgeting of a business. And specifically in general, single-office owned dental practices, usually doing what an average dental practice would do, which is somewhere around a million dollars a year in revenue, maybe enough where it's two or $3 million a year in revenue. And we're talking about that.Jonathan VanHorn:So I've got Joseph with me obviously. Joseph has a lot of history of doing this as a CFO in the prosthetics company that he worked for before he joined us at Tooth and Coin. And we're going to just talk about it, and what our thoughts are about budgeting, some of the pitfalls of it, some of the benefits of it, and then maybe some alternatives that people should be thinking about as well. So, yeah. So welcome to the episode.Joseph Rugger:Yeah. Thanks for a good intro there, Jonathan. I think probably what would be worth it to just talk about first at a high level is, what is budgeting and who typically does it. So you guys may or may not be familiar with all the different stuff that's out there, but typically budgeting really has to do with trying to make a plan for where your money's going to go. And one of the things that budgeting is, is going to work off of a forecast. And that's something that can be really difficult to tie down and pin down in different organizations, different industries. So, your typical business that is, let's say $10 million or more in revenue, typically has a team of accountants. They've got people that are maybe a CFO, maybe they've got a controller, maybe they've got an AP clerk, maybe they've got somebody that's in charge of AR. They may have somebody specifically in charge of budgeting, somebody that actually has a season of their life that they call budget season.Joseph Rugger:So if we ran a calendar year budget, this person may start sitting down and making the budget out in September, and then spending time in October and then reprioritizing in November and then in December. So as I described this big, robust accounting and finance department, that typically doesn't happen until you get pretty far along in revenue. And you may hit that at $2 million and you need those people, or $5 million or $10 million. But typically it's until you get to that really big growth stage where you've got to have multiple people that are running your accounting and finance. And as you mentioned, Jonathan, if we say that the typical dental office has a million dollars in gross receipts or in ...
