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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.

Schiff Client Update, December 31, 2020

PPP#1 Loans

  1. Covered Expenses paid with your PPP#1 Loan will now be tax deductible for money already received
  2. PPP#1 funds will not be taxable income, which means the expenses paid with the PPP#1 funds will be tax deductible
  3. The New Tax Bill, that President Trump signed on Sunday, December 27, 2020, repeals the requirement of deducting the EIDL advance from the PPP forgiveness amount
  4. The EIDL advance up to $10,000 per Practice (or $1,000 per Employee), will not have to be repaid.
  5. The New Tax Bill simplifies the forgiveness process on PPP loans of $150,000 or less. (We have yet to see what that new process or form will be). Please wait to apply for forgiveness, for the Banks are still waiting on updated guidance from the SBA and the US Treasury. Please remember, you MUST file for forgiveness, 10 Months after your 24 week period is up. If you do not file for forgiveness, your PPP Loan , will become a two (2) year Loan payable at 1% interest.

PPP#2 – Second Round of Funding

  1. The SBA will have 10 days (after the New Tax Bill is enacted) to establish regulations for the next round of PPP#2 funding. Thus, please keep in mind that the highlights below are terms we anticipate being signed into law; however, the SBA’s regulations may alter this.
  2. $284.5 Billion in funds will be available through the next PPP#2 loans.
  3. Paycheck Protection Program (PPP#2) offered through March 31, 2021.
  4. Is your Practice eligible for the second round of funding (PPP#2)? Businesses with less than 300 employees who have had a 25% or greater reduction in collections (i.e., gross receipts) in any ONE quarter of 2020, when compared to that same quarter of 2019. For example, let’s assume you collected $100,000 in April 2019, $1000,000 in May 2019 and $100,000 in June 2019 for a total of $300,000 for Q2 of 2019. We will need to compare that to the same quarter of 2020 (April, May & June 2020) to determine if you have a reduction of Collections that are 25% or better. I sense most of you will, since you were closed a good portion of Q2 2020. If so, we will then need further guidance from both the SBA and the US Treasury, as to what criteria will be needed to be satisfied to meet the new requirements of the PPP#2.
  5. I will be working with the ADA in January 2021 as the PPP#2 develops and will be reporting back to you at that time. The ADA has been “off the charts” supporting Dentistry throughout this process. Your membership with the ADA is working for you!!  

Other Key Tax Provisions for Dentistry

  1. Employee Retention Tax Credit: Extended through July 1, 2021; We are waiting on further guidance as to how this work in 2021.
  2. COVID-Related Pay Tax Credits: Extended to March 31, 2021. These are the refundable payroll tax credits for Emergency Paid Leave and Emergency Family Medical Leave Pay that were set to expire on December 31. Please e mail Diane Nelson, CPA, MST at DNelson@schiffcpa.com for further guidance and help if needed.
  3. Charitable Giving Incentive Extended: One-year extension of the $300 “above the line deduction,” meaning you can take this deduction even if you are not using itemizing your deductions on your individual income tax return. Is now $600 if Married Filing Joint (MFJ). Please see note below on giving to the ALS Clinic at Johns Hopkins Hospital in Baltimore, Maryland. Thank you!
  4. Flexible Spending Arrangement (FSA) Relief: Allows individuals to carry over any unused health and dependent care FSA benefits from 2020 into 2021 plan year.

Department of Health & Human Services (HHS)

Many of you received Phase 2 funding from the Department of Health & Human Services. Some of you, even received funding from HHS recently within their Phase 3 funding. As of today, we will have to report to the Department of HHS in January 2021 and again in July 2021 as to how you used these proceeds and what monies were spent on such. As soon as January 2021 begins for Small Business, the Department of HHS will be supplying us with further guidance as to what documents will be needed in order to gain full forgiveness. As of now, please save all documentation (Invoices, Canceled Checks and Credit Card Receipts) for any items you purchased that would qualify for PPE Equipment & Supplies. We will be sending out an updated e-mail with instructions, as soon as the requirements become apparent to us.  

2020 4th Quarter Estimated Payments due , January 15, 2021

During the last Quarter of 2020, we have met with most of our clients. During your 2020 year end meeting, we presented to you, two (2) scenarios with respect to your Tax Position as of December 31, 2020. Please review such, and please pay the 2020 4th Quarter Estimate based on the Column of your Tax Projection that states the PPP Loan will not be taxable. If you have any questions, please contact your Schiff Team Member on Monday, January 4, 2021.

Maryland – LLC’s , Sub S Corporations – Maryland MD 510 Payments due TODAY, December 31, 2020

Recently, the State of Maryland changed their tax laws as it relates, to the State of Maryland Taxes due from Pass Through entities, such as a Maryland LLC, Maryland Partnership and a Maryland Subchapter S Corporation. The new Tax Law, will allow you to pay your State Taxes through your entity, and receive a tax deduction. Please be sure to pay this Tax with Maryland Tax Form 510D. https://www.marylandtaxes.gov/forms/20_forms/510D.pdf. Please pay today, December 31, 2020, if you have not done so.

This only applies to Maryland Partnerships and Corporations, NOT SOLE PROPIETORSHIPS taxed as an LLC!

ALS Clinic at Johns Hopkins Hospital Baltimore – Cindy Schiff

As you have gotten to know Cindy, life was not about her, but about mankind. There will be no better way to honor her life with a contribution to research of the horrible disease of ALS. Contributions in Cindy’s name can be mail to:


Hopkins ALS Clinical & Education Fund
c/o Lora Clawson, CRNP
JHOPC – Suite 5070A 
601 North Caroline Street
Baltimore MD 21287

Or , you can pay on line at >>

https://secure.jhu.edu/form/als?fbclid=IwAR3RvQ3xmUM0vdcXfrcxvOI1XF7h1k5j58ARe8iWPvqtUx38lWl6lyV4QfM

Special “THANKS” to each of you, that have made a Contribution to the ALS Clinic at Johns Hopkins Hospital in Baltimore in honor of Cindy’s Name. I am so appreciative of each you and your generosity. The ALS Clinic in Baltimore, is amazed at the abundance of love as well!  My heart is filled with amazing warmth & comfort….Thank you!

ADCPA PODCAST on PPP Funds & Cindy Schiff & the ADCPA

As most of you know, the ADCPA produces a weekly PODCAST on Dental Practice Management as well as Dental Finance. The December 16th PODCAST was on >>>What Dentists Need to do to Qualify for a New PPP Loan in the Next Round of Stimulus as well as was dedicated to Cindy & her life. If you would like to listen to this Podcast, please click on the Hyper Link below. I am grateful for Art Wiederman, CPA (ADCPA Los Angeles CA) for dedicating the PODCAST to Cindy & her life.

https://blubrry.com/art_of_dental_finance/71634748/what-dentists-need-to-do-to-qualify-for-a-new-ppp-loan-in-the-next-round-of-stimulus/

Additional Coronavirus Response and Relief (ACRR)

This morning the text of the new Additional Coronavirus Response and Relief (ACRR) legislation was released. If the legislation is passed by Congress and signed into law, it will include the following items:

1.  PPP Deductibility – Expenses used to obtain loan forgiveness will be deductible.

2.  EIDL Grant taxability – The EIDL Grant (up to $10,000 received in April 2020) will be tax free and related expenses will be deductible.

3.  EIDL Grant impact – The EIDL Grant will no longer reduce PPP loan forgiveness. Under the CARES Act, if a practice received a $100,000 PPP and $10,000 EIDL, it would be eligible for $90,000 forgiveness and be left with a $10,000 PPP loan. That adjustment is being eliminated allowing for the potential to obtain full forgiveness.

4.  Simplified application – PPP loans of under $150,000 will be eligible for a one page simplified forgiveness application but still must retain documentation and meet the requirements of the program.

5.  2nd Round PPP – If your practice incurred a 25% or greater reduction in collections in any 2020 calendar quarter compared to 2019, it may be eligible for a 2nd PPP loan. Most practices should have incurred such a reduction for the 2nd quarter that includes April – June 2020. We need additional time and guidance to determine if there will be other limitations.

6.  Stimulus payments – Taxpayers with under $150,000 adjusted gross income (married filing joint) or $75,000 (single) will be eligible for an additional $600 stimulus payment or 2020 tax credit.

7.  Meals – Business meals provided by a restaurant paid in 2021 and 2022 will be 100% deductible but still require normal documentation including the business purpose, who attended, and what business was discussed. There is no change to business meals paid in 2020.

It is important to note that even if this legislation is passed without changes, it will take the Treasury Department, SBA, and IRS a few weeks or months to clarify some details. 

This is GREAT NEWS to all business owners! A early Christmas gift before Christmas!  :>)

Next Round of HHS Grant Relief Funds 12/16/20

Today, December 16, 2020, many of you should be receiving the next round of HHS Payments (Phase 3 Payments).  Please check your bank statement for they are ACH into your Business Checking Account. For those of you, that have had your 2020 year-end meeting with us, you may want to increase your Estimated Tax Payments due January 15, 2021, for these funds are taxable. Please contact your Schiff Team Member for any questions you may have. If your 2020 year-end meeting is coming up, we will need this info from you ASAP, so that we remain current.

Dental Accountants Near Me | The Business Management Tools You Need For A Successful Practice

Business management tools refer to the systems, applications, and methods used by dental practices in their day to day operations. These tools are used to ensure that they can keep up with changing markets, ensure a competitive position within those markets, and improve their performance. Many of these tools can be used to help manage your operations and guide your practice towards success. 

Mission Statements

These are short statements that define what your practice is and identifies your goals. According to Forbes magazine, a mission statement must answer these questions:

  • “What do we do?”
  • “How do we do it?”
  • “Whom do we do it for?”
  • “What value are we bringing?”

Mission statements provide a sense of direction that helps your practice make beneficial decisions and plan for the future. It also gives a clear, defined purpose, and acts as a motivational tool to encourage your staff to work towards a common goal. 

Strategic Planning

Strategic planning builds off of mission statements. It is the process of defining a direction for your practice, and making decisions that contribute towards that direction. A proper strategy outlines how your end goals will be achieved by the means you have. 

Strategic planning can be simple, and has a demonstrable impact on your practice’s success. Write down your core values, and create a vision of where you want to be within five years. Then determine what the steps are that will help you achieve that vision. Make sure to stress these goals and vision to your staff and explain how they tie in to your mission statement. This will ensure they work towards them every day.

Customer Relationship Management

Customer Relationship Management (CRM) is the act of using data analysis to improve business relationships with your current and potential patients. CRM compiles data from a wide range of sources, including your practice’s website, marketing materials, and social media. Using the CRM approach helps you learn about your patient base and how best to cater to their needs.

The best way to bring customer relationship management into your practice is to invest in a CRM system. These are software programs that can store patient information, record notes about their treatments, and manage marketing campaigns all in one central location. There are many of these systems designed specifically for dental practices, including Curve Dental, Dentrix Ascend, Denticon, and more.   

Leadership

You’re more than just an owner of a practice. You’re also the leader of your team. Having quality leadership skills is more than just being able to delegate and hire the right people for the job.  It’s about staying in control emotionally and being consistent in leadership

It can take a long time to reach a point where you’re consistent, and that’s perfectly fine- but don’t settle for half-measures. Communicate with your team and ask them for suggestions about what you can do to lead better.

All of these management tools and more can help improve the performance of your practice. Our team has resources to help you learn more about business management tools and how to maximize your potential. Contact us to find out more.

Best Dental Accounts | Key Performance Indicators in the Dental Industry

Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a practice’s long-term performance. KPIs are used by dental offices to measure progress towards tangible goals, such as increasing collections by 20% in a year, or improving patient retention rates by 5%. Using these goals to evaluate specific areas of your practice will show you where you can improve in order to better your financial success

The Different Types of KPIs

KPIs can be organized into several different types, depending on what area of your practice they affect. There are five categories:

  • Inputs – Inputs refer to the resources used in producing outputs (see below). For a dental practice, inputs can refer to the supplies used during the day, such as tools and cleaning solutions, along with the time investment from the staff.
  • Process – Also called “activity,” these measure the processes used in producing outputs (see below.) For dentists, process KPIs measure the cost of performing procedures, such as how much fluoride is given to a single patient or how much anesthesia is used during a surgery.
  • Outputs – Outputs refer to measurements that indicate the amount of work done and what was produced. In most businesses, outputs refer to tangible products. In dentistry, outputs can be used to assess things like how many patients are seen in a day.
  • Outcomes – These KPIs are more abstract, focusing on accomplishments and impacts. Patient satisfaction and positive retention rates are two major outcomes practices can focus on.
  • Project – Like outcomes, project KPIs are rather abstract. They are meant to answer questions related to milestone progress towards important initiatives. For example, adding a specific amount of new patients via a marketing campaign is a project KPI.

How Can I Use KPIs In My Practice?

One important thing to keep in mind is that KPIs do not have to be tied to financial data. Outcome and project KPIs can help improve a practice’s relationship with their patients and community. Every aspect of a practice can be analyzed and improved through smart use of KPIs. Establishing them is an easy process:

  1. Write a clear goal for the KPI.  Tie the goal to a key business objective, something integral to the organization’s success. Make sure the goal is strategic, otherwise it will not translate into tangible outcomes.
  2. Communicate the new KPIs to employees. Be sure to not only explain what the goal they’ll be working towards is, but why they’re working towards it. Someone on staff may even have an idea to improve it.
  3. Review KPIs regularly. Use records and hard numbers to track progress. For example, if a process KPI is set to reduce fluoride use to make stock last 10% longer, compare the amount of fluoride used before and after the goal was introduced. 
  4. Evolve your KPIs if need be. If the results fall short of expectations, fine tune the goals or change directions entirely. Change may bring about a new, more efficient way of getting to the same destination.

Key performance indicators are an effective strategy to get your practice to where you want it to be. They are easy to define and act upon, making them reliable ways to track progress. For more information on KPIs and how they can be used to grow your practice, contact our experienced dental accountants today for more information.

ADCPA | What You Should Know About Your Practice’s Finances

As the owner of your own dental practice, you’re most likely also responsible for the financial health of your practice. As the leader of your own business, this responsibility probably isn’t one that you would change, but it may be one that you can improve on. Here are a few ways that you can better understand your finances to help ensure your growth and continued success.

Do you Have a Strong Billing Strategy?

Managing the finances of your business means collecting payments from your patients and their insurance companies. Short of hiring an enforcer to collect payments like some kind of dental loan shark, a strong billing strategy can help you receive these payments in a timely and efficient manner. If you struggle to collect payment, take a look at what strategies you use and learn how to help improve the day-to-day functionality of your practice. A dental accountant may be able to help you create a more powerful billing strategy. 

How Are You Spending, and What Returns Are You Seeing?

By knowing this information about your practice finances, you’ll have a much clearer picture of your practice. From this knowledge, you can make more informed decisions about which expenditures continue to make sense, and which you could most likely cut back on without seeing a large dip in productivity. Understanding your practice’s finances and using that understanding to make better decisions is the main speciality of a dental CPA. If accounting and handling the finances of your practice isn’t your strong suit, our team is here to help.

Prepare For the Future, Whether it Holds Growth or Decline

You solve problems for your practice every day. This won’t change in the future, but you can ensure that you’re equipped to handle even the most difficult of problems by preparing for the future with your finances.

Setting aside a little money consistently can help you have a large fund when opportunities for growth pop up. This fund can also be used if you ever find yourself in an emergency. Either way, having a financial plan is essential for a thriving business and a stable financial future.

If you’re ready to take your practice to the next level, give our team of skilled accountants a call. We can help with more than just your taxes. Together, we can discuss the current financial health of your practice and devise a plan for growth and a more secure financial situation. Whatever your needs, our expertise is here to help your practice grow. 

Update – Phase 3 Dept HHS Provider Relief Grant (PRG)

I wanted to reach out to offer some insight into the HHS Phase III Funding Application that I emailed you on Friday October 23, 2020.

This 3rd round of HHS funding will first go to Dental Practices who have not received funding from HHS within the previous two (2) HHS phases. This would include Start Up Dental Practices as well as those Practices that were rejected or did not apply for Phase 1 or Phase 2 Funding. After all applications have been processed AND all entities who qualified for the 2% of net 2019 collection payment have in fact received their payments, there is a possibility of additional payments from HHS if there are monies left over. There are no guarantees.

At this time we do not know how much funding, if any, will be left over to be distributed to practices that have already received their 2% of Net 2019 Collections payment from HHS. We will have to wait and see.

If you are in need of your P & L for Q1 2020, Q2 2020 and/or Q1 2019 and/or Q1 2019, please reach out to your Schiff Team Member. We can also supply you with your 2019 Income Tax Return as well.