There’s more to a dental practice than managing patients and implementing marketing strategies. Your business must also remain compliant with constantly changing tax laws and regulations.
A specialized CPA for dentists understands and stays up-to-date with this dynamic landscape. Partnering with a bookkeeping agency for your dental practice will free up time and resources you can put toward improving patient care and growing your business.
1. Financial Analysis
During the years it took you to acquire your dental education and training, you probably didn’t spend much time learning about bookkeeping or accounting. Consequently, it’s not uncommon for dentists to make costly mistakes when handling their own financials.
A specialized CPA can help ensure that your business follows best practices and that you take advantage of any write-offs you’re entitled to. This can save you significant amounts of money in the long run. It can also reduce your tax liability. Moreover, they can handle all of your tax preparation tasks.
2. Tax Preparation
Choosing the right accountant will help you navigate the business world of dental practice ownership. Look for accountants for GPS with experience in serving dentists and who specialize in accounting and tax services specifically for dental clinics.
They also likely to stay up-to-date on local laws affecting the dental industry, which can save you time and money. Moreover, they understand the everyday problems and mistakes that are common to dental practices and can provide valuable advice to avoid them.
In addition, they will be able to save you money by maximizing available deductions and credits for your practice.
3. Business Planning
Whether you’re looking to invest in equipment or expand your practice, dental accountants can help. They can provide a wide range of business planning services, such as budgeting, financial projections, and cash flow management.
They can also assist with a variety of business financing options, including bank loans and lines of credit. Their expertise and experience can ensure you make the best possible financial decisions for your practice. These business planning benefits can save you time and money and set your practice up for success in the long run.
4. Financial Reporting
Dental accountants are adept at examining complex sets of data and providing valuable insights for your business. They can forecast financial trends based on past performance and current market conditions to help you determine how much revenue to expect from your practice in the future.
They can also provide bookkeeping and accounting services for your practice, and assist with employee payroll setup and tax filing. In addition, they can offer expert guidance when it comes to loan and financing opportunities and support your growth strategy. They can also guide you through the complex world of regulatory compliance.
5. Cash Flow Management
The flow of money into and out of your practice is a key part of your bottom line. An accountant can improve the processes in your office that lead to cash inflow, like implementing patient billing and payment reminders that speed up how long it takes patients to pay their bills.
Dental CPAs are also familiar with the unique expenses and depreciation of dental equipment, so they can help you create a budget that saves your business money. This enables you to make smarter financial decisions, including whether or not to purchase new equipment.
6. Business Financing
Dental accounting firms provide valuable analysis and advice that help you make informed business decisions. They can help you compare financing options and evaluate the financial impact of a new or existing service.
A good dental accountant can also assist with bookkeeping and payroll processing. They can set up an easy-to-maintain system and recommend reputable payroll providers. They can also ensure that all payroll taxes are paid accurately and on time.
A specialized CPA understands the unique financial needs of your industry. They can help you determine market value for employee salaries, advise on employment contracts, and assess the profitability of new services or equipment purchases.
7. Insurance Management
An experienced dental accountant can help you set measurable goals for revenue growth and new patient acquisition. They can also minimize write-offs by properly documenting patient discounts and ensuring insurance claims reflect actual fees charged.
An accountant can also assist with bookkeeping and payroll processing. They can help you choose the best payroll providers and ensure your books are accurate and up-to-date. They can also advise you on retirement planning. This is especially important for self-employed practitioners, as they bear sole responsibility for retirement planning. They can also assist with tax-deductible business expenses.
8. Business Development
Running a dental practice requires you to focus on your patients, but it also involves an array of secondary management decisions. Your time is best spent on core operations, and delegating bookkeeping and accounting tasks to an expert allows you to do just that.
A knowledgeable CPA firm with experience in the dental industry can help you set growth goals and generate more collectible revenue month after month. They should also be able to provide tax planning capabilities and advice that align with current tax laws.
9. Business Strategy
While dental school and residency prepare dentists for patient-facing work, it does not teach them about bookkeeping and accounting. For many new practice owners, handling these tasks can feel overwhelming.
A dental CPA firm can handle all aspects of accounting for your business, including payroll, taxes, and other financial reporting. This allows you to focus on growing your practice and improving patient care.
A good dental accountant will also offer advice on managing finances, which can help you save money in the long run. This includes maximizing deductions and ensuring compliance with tax laws.
10. Financial Peace of Mind
A CPA that specializes in the dental industry can provide expert guidance on the many complex financial transactions involved with buying or selling a practice. They can also help you determine how much your practice is worth and ensure that any sale or closing transaction is done properly to avoid tax penalties.
Running a business is stressful enough without having to worry about taxes and other financial issues. By hiring a CPA, you can take some of the pressure off of yourself and focus on what matters most – providing quality patient care.
