As a dental practice owner, you have already attended dental school, completed a residency, and taken continuing education courses. By following this conventional route to obtaining your qualifications and schooling, you might not have acquired extensive knowledge of bookkeeping or accounting. Owning a practice can be a shock to the system when a dentist discovers that the “business side” of dentistry is overwhelming.
Despite what some might think, dental offices are businesses, and dentists are the CEOs. Owning a dental practice or working in a partnership with several dentists should be treated like a business. By increasing revenue, reducing overhead, maximizing deductions, and minimizing taxes, you can lessen your tax burden. Dental CPAs help dental practices achieve all these goals. Here’s how.
It is their specialty.
Dental CPAs are more than just accountants. CPAs who specialize in dental practices work exclusively for dentists. Because of this, they have specific knowledge that other accountants do not have. CPAs with expertise in dentistry have an insider’s view of expenses, trends, and ways to lower a practice’s tax burden. Additionally, they know what new equipment delivers the best return on investment and how to minimize the depreciation of assets unique to the dentistry industry.
They can analyze the financial health of your firm.
Having a dental CPA goes beyond just keeping track of your business’s taxes. CPAs can also provide valuable insight into the overall business model of your company. A qualified dental CPA can review a practice’s financial statements and determine how expenses can be reduced and profits can be increased. As dental industry experts, they’re familiar with financial oversights and inefficiencies.
In just a few months, a dental CPA will be able to analyze your practice’s finances and make actionable suggestions that make an immediate difference.
Benchmarks in the industry
Benchmarking refers to the process of comparing a company’s performance metrics with those of competitors and industry standards. Although a dentist may not be aware of how their practice compares to practices in California, Texas, and New York, a competent dental CPA does. They are well versed in the industry’s key performance indicators (KPIs). In addition, they take into account factors such as patient volume, profit margins, and the percentage of patients who are currently on schedule.
Benchmarks and key performance indicators are powerful tools for framing and understanding your business. The best way to make use of these tools is through a dental CPA.