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Dental CPAs | Increase Investments for Revitalized Revenue

Dental CPA Near me

Like most businesses, dental practices are not immune to the effects of the economy, and, lately, the pandemic. Peaks and valleys in revenues are normal. Any time revenues begin to inch down, many practice owners react by cutting back on the line item they think is most expendable: Marketing. This is almost always a mistake.

When you cut your marketing budget, you effectively slam the door on new patients, and you reduce your potential revenue. If you are new to the profession, you may not realize how closely linked marketing and revenue are.

The competition for patients is too fierce to stop marketing your practice — the kind of marketing that is tailored to the people you want in your chairs. Your practice might be near a school and benefit from drawing young families who like convenience. You might want to advertise your excellent restorative work to a retiree-rich zip code or teeth bleaching and veneers to young professionals. How do you reach them?

Today’s businesses cannot survive through word of mouth and referrals alone. Your practice needs to attract new patients on an ongoing basis, not just in the weeks following a postcard blast or mass email. A scattershot approach is a waste of money. You want to capture potential patients’ attention week after week, month after month. It takes at least seven exposures for them to remember you. This is especially true with a profession that still, unfortunately, invokes fear; it is imperative that you establish trust.

In addition to attracting new patients, you need to solidify and maintain the loyalty of your existing patients. It is important to keep them looped into any specials you want to run, new services you offer, and the latest developments in the dental world. Social media marketing can be just the solution.

Consistent, effective marketing keeps you top of mind.

When your marketing budget increases, stronger revenue follows. Several factors influence how much your practice should allocate to marketing, including these:

  • Are you a new practice? You may need to invest more until you have established a solid patient base.
  • Do you want to maintain growth for your established practice? Compare your current rate of new patient acquisition to the number of patients lost annually to determine how your current budget is performing.
  • Is business stagnant or decreasing? Consider investing an additional 5 or 10 percent above your current marketing budget, at least until the trend reverses.
  • How competitive is your local market? Higher competition requires greater investment to grow business. You must find, build on, and market your differentiator — and not stop.

Can you still afford to market your dental practice in leaner times? You can’t afford not to. For customized advice regarding your marketing budget and business growth, contact the Academy of Dental CPAs today.

Dental Accountant Near Me | Tax Time: Why File with an Accountant?

Dental Accountant Near Me

When it comes to tax time, having a professional CPA on your team is important to protecting your investment, and ensuring the health and longevity of your practice. Before you consider taking shortcuts, stop and consider the consequences. Here are a few of the many reasons you should work with a professional accountant.

Dental accountants understand tax code. Tax code is not only complicated; it changes frequently. Interpreting and staying up to date on the current codes is a full-time job. As a dentist, you are busy enough running a practice without having to stay abreast of shifts in tax law. Accounting software may not help you take all the deductions that you are owed. Hiring an accountant who understands how dental practices operate is a wise investment. It can offer you with extra peace of mind every April 15.

Dental accountants know how to get you more deductions. Everyone wants to maximize their deductions, but only a professional financial expert can get you everything you are legally owed. Don’t leave money on the table and don’t overpay the government.  This is exceptionally important advice for small businesses, including most dental offices. Partner with an experienced dental accountancy firm to offer advice, analysis and help with preparing quarterly estimates.

Dental accountants minimize your risk. Taxes are one area in which you don’t want to cut corners. One innocent mistake can unleash an audit and cause potential trouble. If you run into such a scenario, you could wind up paying far more than you would have if you worked with a professional from the beginning. If your practice is an S Corporation, penalties bleed into your personal taxes and can have damaging repercussions on your family’s finances. Working with a dental CPA throughout the year offers protection. Your accountant can ensure that you have your tax-related paperwork in order year-round. Accurate documentation ensures you will receive all allowable deductions and minimize errors.

Small business owners and entrepreneurs are risk-takers; it’s how they succeed. But risk has limits. Don’t jeopardize your dream by cutting corners on one of the most important tasks of the year. Work with a dental CPA and allow yourself the peace of mind to protect what you have worked so hard to build. Choosing the right dental accounting firm is critical. You want one that puts your interests first, helps you with long-term strategy, and offers analysis and advice.

ADCPA | Boosting Your Practice’s Profitability

Dental CPA Near Me

Have you ever wondered how you can maximize your practice’s return on services and recoup some of your capital? Our dental CPA provides strategies to help boost your office’s profitability.

How to Optimize your Dental Practice

Reviewing your production reports and ensuring procedures are in place can help save time and money. If a procedure is charged incorrectly, it can increase costs over the course of a year.

If possible, adding high-dollar procedures to your practice such as endodontics, teeth whitening, and other cosmetic services can greatly boost your bottom line. Training dental hygienists in various procedures, such as soft-tissue management and whitening, can also maximize a dental practice’s profitability.

Build a Great Dental Team

In order to recruit and hire the best possible candidates, it is worth paying above-average wages to experienced people in the field. This avoids high employee turnover, which can become costly. A friendly and knowledgeable dental team will also help with patient retention.  

Facilities and Equipment

If possible, purchase all your dental and office equipment, rather than lease it. This avoids a number of issues including higher retail costs, interest payments, hidden fees, and lease-breaking penalties.

Strive to maximize your office space. If your current patient volume doesn’t allow you to use all your offices, consider subletting either your primary or secondary office space. Another option: Merging your office with another dentist. Done right, it can help you fully utilize your space and reduce overhead.

There are a variety of ways to boost profits and cut costs while owning a practice. To start, focus on your core services, team, and office space. We know opening a practice can be costly and leave many dentists in debt, especially after finishing school. Contact our team of dental accountants at ADCPA today for help with managing your budget and ways to maximize your return on investment.

Dental CPA Near Me | How to Choose the Right Dental CPA

ADCPA

Hiring a dental specific CPA (certified public accountant) for your practice not only provides greater financial transparency; it’s an excellent resource for making informed business decisions. If you’re considering hiring a dental CPA, it’s important to know what qualities to look for in candidates. The following are important steps in helping determine the ideal CPA for you.

Determine Your Needs

Before you start looking for an accountant, determine why you need a dental CPA. Are you looking for a CPA to help with your financial business strategy? Do you need help with your bookkeeping or filing your taxes? Once you determine your specific needs, you can assess which skills you should look for in a dental CPA.

Ask Around

Colleagues experienced in running their own practices can be a helpful resource in providing advice on this process. Ask what traits they look for in a CPA. With their knowledge in mind, begin conducting your own research guided by your particular needs.

Here are some general questions to ask yourself when looking for a dental CPA:

  • Do they meet my specific needs?
  • Are they up-to-date with their knowledge? Do they use modern software?
  • Are they established and reputable?
  • What dental practices do they currently represent?

Look for Dental Industry Experience

Many accountants spend a majority of their time working with clients in a vast number of industries and don’t necessarily have specific experience with dentistry. If you are looking for an accountant with dental industry knowledge, contact ADCPA today. We offer a variety of services to fit everyone’s needs. We look forward to hearing from you.

Academy of Dental CPAs | Goal Setting Strategies

No matter how impressive your vision for your practice may be, dreams require hard work and strategic planning. Highly successful practice owners learn to set goals realistically and effectively. Master the skills of effective goal-setting, strategic planning, and assessment to find greater success in your business.

Set Incremental Goals

Start small when setting goals by establishing daily and weekly goals. It can be easy to let ambition take over while you dream of long-term goals. However, you cannot reach your long-term goals without smaller victories along the way. Setting smaller, incremental goals provides the opportunity for you to be in consistent control of your practice. You will know if you miss a weekly goal, and you can then adjust your strategy to make sure your team can stay on track moving forward. If you are only setting quarterly or yearly goals it can come as a surprise when you miss them, or your team might be left struggling to meet them in the eleventh hour.

Make Goals Visible

You and your team need a visual reminder of what your goals are and when you plan to achieve them. Put them up on a bulletin board in the office or include them on your calendar. Write your goals in a place you look daily as a consistent reminder. We all have those back-of-the-mind thoughts or ideas that might be good if implemented, but they are frequently forgotten. Make your goals visible to you and your entire team.

Measure Your Goals

How will you know if you achieved your goal if you cannot measure it? Goals should have a measurable standard. Perhaps your goal is to see a 20% increase in your monthly new patient numbers in a 6 month timeframe. By defining specific numbers and timeframes, your goals will lead to action. Abstract goals are often set and missed. When a goal is clear and measurable, you can more easily create a plan that accomplishes the goal at hand. Once you’ve set measurable goals, make sure you have a cadence for evaluating them. Will you be reviewing your progress weekly, monthly, or quarterly? This timeframe will vary based on the size of the goal and effort needed to evaluate change

Evaluate your goal-setting protocol to identify areas of opportunity. Master these skills and you will be on your way to the success you desire.

Best Dental Accountants | Tax Tips for Dental Practices

Annual financial reports show that many Americans overpay on their taxes by a collective one billion dollars every year. This happens when people fail to hire experts who are well-versed in available tax credits and deductions. Considering tax implications, laws and spending before tax season can help you to properly plan and take advantage of credits and write offs available to you.  

There are a number of deductions to consider, including:

  • Charitable Expenses – Depending on the nature of your giving and documentation, you may be eligible for a deduction related to charitable contributions. 
  • Job-Hunting Costs – Whether seeking employment or to recruiting employees, you may have expenses in this category worthy of consideration. 
  • Lifetime Learning Credit – With proper documentation, certain programs may allow for a tax credit. 

Bigger Picture Changes

In addition to claiming credits during the actual filing process, there are a number of big-picture changes you may want to consider in the coming year.

  • Choose the Right Business Structure – An experienced accountant can help analyze your practice structure and advise you when deciding the business structure of your practice. 
  • Maximize Your Medical Benefits – Any smart tax strategy includes proper management of medical benefits. For example, businesses with employees can take advantage of Medical Expense Reimbursement Plans. These allow you to write off medical bills as business expenses.
  • Choose the Right Retirement Plan – Retirement plans help ensure financial stability and living standards when you eventually retire. An experienced accountant can help you choose between a 401k, defined benefit, SEP, and more to meet your goals.

Tax season only comes once a year, but it’s something any dental professional should be considering long before April. Our experienced accountants can help turn a hefty tax payment into a large return. Contact us today to see what our team can do for you.

Schiff Client Update, Friday, January 15, 2021

PPP2 Loans – as a reminder, you will qualify for a PPP2 Loan if your Fee Income is down at least 25% or more for any calendar quarter when comparing 2020 to 2019. Your best chances of meeting this requirement are Q2 2020 vs Q2 2019. If you have not done so, you are welcome to use the attached spreadsheet to perform this computation.

Many clients are asking me – “should I apply for the PPP2 Loan”? I would quickly respond with a  “YES” but, I am also respectful to those of you, that are not interested in a “Government Handout”. Whatever your decision is, I will respect it.

How will the PPP2 Loan work? – the rules will be the same as the PPP1 Loan. You must spend the funds within a 24 week period and the allocation of such is still 60% for Payroll Covered Costs and 40% for Other Covered Costs. The PPP2 Loan will equal 2.5x your average monthly payroll for 2019, the same as PPP1.

PPP1 Loans – When should I file for forgiveness? As you may recall, you have 10 months to file for forgiveness from the end of your 24 Covered Week Period. If your Practice is down by 50% or more in calendar quarter comparison from 2019 to 2020, you will qualify for the ERC – The Employer Retention Credit. If this is the case, you should hold off on filing for Forgiveness of the PPP1 Loan because you will need to SAVE some wages from the PPP1 and use them for the ERC computation. I have built a spreadsheet to support this. It is very very complicated and hard to understand, but I will share it with you this coming Sunday at 12 Noon. I am hoping the Banks will program their Portals to allow such information to be entered with the Banks Computers computing such Credit. Let’s be patient and see what transpires.

HHS Provider Relief Grants – Today ( January 15, 2021), the Portal of the Department of Health & Human Services is supposed to open, to allow us to submit various financial information on how you spent the HHS Provider Relief Grant(s). I am hoping in addition to the actual COVID Expenses incurred, the Department of HHS will allow us to use the loss of Gross Revenue. Let’s wait and see what their Portal calls for. We will address this on Sunday too!

Please reach out to your Schiff Team Member for any Financial Information you may need for any of these Government Programs. We are just an e-mail away!  


Finally, I will be hosting a ZOOM Meeting on these topics, this coming Sunday at 12 Noon. Here is the Zoom Link Info:

Allen Schiff is inviting you to a scheduled Zoom meeting.

Join Zoom Meeting – https://us02web.zoom.us/j/84365302687

Meeting ID: 843 6530 2687

One tap mobile
+13017158592,,84365302687# US (Washington D.C)
+19294362866,,84365302687# US (New York)

Dial by your location

PPP2 Loan Applications are now available!

Many of you have inquired about the PPP2 and the application process for such. Just now, the SBA released the PPP2 application. Please click on the link below:

https://home.treasury.gov/system/files/136/PPP-Second-Draw-Borrower-Application-Form.pdf

Please keep in mind, in order to qualify for this next round of funding (PPP2) you must be able to prove your collections were down by 25% or more for any calendar quarter. You must meet one of the following:

  • For all entities other than those satisfying the conditions set forth below, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019. Alternatively, Applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019; Applicants choosing to use annual gross receipts must enter “Annual” in the 2020 Quarter and Reference Quarter fields and, as required documentation, must submit copies of annual tax forms substantiating the annual gross receipts reduction.
  • For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
  • For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
  • For entities not in business during 2019 but in operation on February 15, 2020, Applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.

Next week, the week of January 11th, the Banks will be opening their portals, so you will be able to apply for PPP2. It is my recommendation, you stay with the Bank that satisfied your PPP1 Loan, for they already have your financial information. If you need a referral for another financial institution, just e mail me.

You must apply for PPP2 by March 31, 2021. I would not wait, if you qualify, for these funds ($284B) are available on a first come , first serve basis!

If you need any financial documents to support your PPP2 loan request (Tax Returns, 941’s 940’s, State Unemployment Forms), please reach out to your Schiff Team Member

Finally, and as a reminder, if you qualify for the 50% reduction, that we spoke about earlier this week, please contact us, so we can help you with the strategy surrounding the maximization of the Employer Retention Credit (ERC). Please do not file for Forgiveness of PPP1, until we have chatted.

ADCPA | Goal Setting Strategies

No matter how impressive your vision for your company may be, dreams require hard work and strategic planning. Highly successful business owners learn to set goals realistically and effectively. Master the skills of effective goal setting, strategic planning, and assessment to find greater success in your business.

Set Incremental Goals

Start small when setting goals by establishing daily and weekly goals. It can be easy to let ambition take over while you dream of long-term goals. However, you cannot reach your long-term goals without smaller victories along the way. Setting smaller, incremental goals provides the opportunity for you to be in consistent control of your business. You will know if you miss a weekly goal, and you can then adjust your strategy to make sure your team can stay on track moving forward. If you are only setting quarterly or yearly goals it can come as a surprise when you miss them, or your team might be left struggling to meet them in the eleventh hour.

Make Goals Visible

You and your team need a visual reminder of what your goals are and when you plan to achieve them. Put them up on a bulletin board in the office or include them on your calendar. Write your goals in a place you look daily as a consistent reminder. We all have those back-of-the-mind thoughts or ideas that might be good if implemented, but they are frequently forgotten. Make your goals visible to you and your entire team.

Measure Your Goals

How will you know if you achieved your goal if you cannot measure it? Goals should have a measurable standard. Perhaps your goal is to see a 20% increase in your monthly new client numbers in a 6-month timeframe. By defining specific numbers and timeframes, your goals will lead to action. Abstract goals are often set and missed. When a goal is clear and measurable, you can more easily create a plan that accomplishes the goal at hand. Once you’ve set measurable goals, make sure you have a cadence for evaluating them. Will you be reviewing your progress weekly, monthly, or quarterly? This timeframe will vary based on the size of the goal and effort needed to evaluate change.

Evaluate your goal setting protocol to identify areas of opportunity. Master these skills and you will be on your way to the success you desire.

Academy of Dental CPAS | Financial Freedom is Within Your Reach

Whether you’re starting up a new practice or have owned a practice for years, the financial stress that can come from being a business owner can sometimes overwhelm even the most consummate professionals. Our primary focus at ADCPA is to help you achieve complete financial freedom so that financial worries and concerns never interfere with your ability to provide the best quality care.

Below are some tips you can follow on your own to help build a rock-solid foundation for your practice.

1. Set goals. Don’t hesitate to dream big. Your practice will only be as successful as you envision it. Setting goals allows you to have a clear ‘ruler’ to measure your success and can help you make better financial decisions in the present. By recognizing that every small decision you make now can have a true impact on the future, you’ll be able to start setting yourself up for success. Your future self and future team will thank you.

2. Have a plan. As the saying goes, “failing to plan is planning to fail.” In order to see true growth, you’ll need to have both short and long-term plans set in place for your practice. How will you allocate new earnings? How is your practice prepared to deal with slow times or another unexpected shutdown? How are you budgeting for new purchases? If you don’t already have answers to these questions, this is a great place to start. Planning for the unexpected and for the future can help safeguard your profitability from being derailed by unplanned expenses.

3. Act wisely. When starting or growing your practice, there can be benefits to taking on strategic debt. However, doing so in a manner that will benefit, rather than hinder your growth requires a firm understanding of the returns you can expect on your investments. Don’t make big purchases without a plan, but instead weigh the potential benefits and risks of all your financial decisions.

4. Stay organized. Disorganization can be the quick downfall of any business. In order to ensure that  you’re not letting anything slip through the cracks, it’s important to have systems in place that will guarantee that no details are missed. In addition to protecting you from unforeseen troubles, efficient organization can also help bring opportunities for improvement to the forefront.

If you want to take steps towards achieving true financial freedom, ADCPA is here for you. Our goal is to make the process of managing and running your practice as smooth as possible, allowing you to focus on delivering quality care to your patients and growing your business. Contact ADCPA today to learn more.