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Dental CPAs: the Most Valuable Asset | ADCPA

Calculator and large tooth on desk Best Dental CPA

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.

Our Dental CPA team is available to answer any questions you may have regarding any of these strategies. For more information about how a dental CPA can help you, please contact us today.

ADCPA
Url: https://adcpa.org/

A Dental Accountant Can Help You Retire Confidently | Best Dental CPA

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Stephen Covey made famous a saying that has stuck with us for years. He said, “Start with the end in mind.” There is no time like the present to start planning for your retirement. These words can mean many things to many different people, but to us, they mean that you should never be too young to start. 

The planning required for your eventual retirement as a dentist with your own practice is much more extensive than that of the average person. Your financial waste can be reduced with the help of a dental accountant, allowing you to retire sooner. 

Approximately how much are you saving?

When you meet with our Dental Accountant team, you will discuss your dental profit and loss, taxes, and long-term savings goals. Changing your investments during retirement may be beneficial to your savings as it may outpace inflation.

What is your exit strategy?

A written agreement that details who will buy you out when you retire would be helpful if you are a dental practice owner or partner. Determine whether you plan to retire outright or work part-time. Consider how taxes will impact your retirement savings. You should consider these and many other factors when planning your retirement. Our Academy of Dental CPAs accounting firm can help you with the details of the transition.

When you retire, what do you plan to do?

Your priorities and living expenses may have to shift if you are considering starting a new venture, traveling more, or embracing a hobby. Considering how rapidly the economy is changing, it is worthwhile consulting experts to help you future-proof your lifestyle.

How long will you be retired?

Life expectancy has increased dramatically due to advances in modern medicine. Depending on your health and family history, you may want to plan as if you’ll live to be 100 years old and estimate your needs accordingly. For example, have you considered long-term care insurance?

Will there be any other changes to expenses?

Even though retirement may eliminate your commute, work wardrobe, and team lunches, it also means higher medical costs. Consider what changes to your budget you may experience during retirement.

You can start working through this list at any time. The majority of accountants recommend meeting with your advisor annually to discuss your progress and make any necessary adjustments. 

Dental accountants are similar to financial coaches. Among the many services accountants can offer, they can assist in finding the right pensions, properties, and business opportunities for you to invest in while you are still employed. They can also help you understand where your money is going as your income grows, ensuring you have a better financial future once you retire.

In addition to helping you divide up your assets after you retire, an accountant ensures that they don’t fall into the wrong hands.

You shouldn’t have to work during retirement. Get financial peace of mind by contacting a Dental CPA today. Let’s talk.

ADCPA

Are You Making A Costly Mistake? | Dental Accountant

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Dentists are experts at what they do. They maintain healthy teeth. Most of these dentists are less experienced in ensuring their books are kept accurately and reflect the financial health of their practice. Both of these skills are necessary to ensure longevity in your practice. In light of this, here are three common bookkeeping mistakes that could be costing you thousands of dollars and, ultimately, your business.

The Difference Between Cash Flow and Profit

It is not easy to understand financial reports. Inexperienced people can sometimes be confused by the complexity, leading to costly mistakes. It is common for dentists and in-house bookkeepers to mistake profit figures for cash. This is incorrect. Due to this mistake, dentists make purchases that incur overdraft fees, which can cost a lot of money for your practice. Profit is calculated using a profit and loss statement. However, cash flow is calculated using a cash flow equation and factoring in depreciation expenses, inventory, and accounts receivable.

Incorrectly recording transactions in the wrong period

It is another common mistake for practices to “close the books” at the end of each month. As your in-house bookkeeper reconciles accounts and prepares financial statements, transactions from previous periods can be entered incorrectly. If this mistake is not caught, all of your future reports, your tax documents, and your cash figures will be wrong. You can imagine how bad that is. The IRS can slap harsh penalties on individuals who misrepresent cash, regardless of whether it was an honest mistake.

Managing your payroll

Dental practices often think handling payroll is a simple task. However, many minor mistakes can easily lead to major problems and penalties. Payroll errors can be frustrating and costly for both employers and employees. A mistake in state tax deductions can result in a sizable tax deduction from an employee’s last paycheck of the year, and this deduction may coincide with the holiday season. Missed hours or incorrect pay rates can also inadvertently decrease an employee’s pay, leading to frustration and lasting resentment. It is these mistakes that cause employee-employer strain and negatively affect your employees. For the employer, incorrectly calculated payroll tax obligations can result in fines and penalties. Generally speaking, dentists aren’t experts in the complex world of government tax regulations.

Not using experienced dental accountants

Managing your practice’s finances yourself or hiring an inexperienced bookkeeper can be disastrous. An unreliable accounting system can lead to high tax bills, theft, cash mistakes, and more. 

A dental accountant can help you save time and money by implementing an efficient system. Having an accurate understanding of your practice’s finances at all times will give you peace of mind. For more information, please contact our Dental CPA office.

ADCPA

Our Accounting Team Will Save You Time | Dental Accountant Near Me

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The IRS, business management, and day-to-day business issues can all seem overwhelming. Most likely, you got into your field to do what you do best, not to do accounting, and even though accounting is essential, we know it might just not be your cup of tea. Most business owners feel the same way. Lack of interest or knowledge does not excuse you from responsibility. In addition, a good accountant can mean the difference between success and failure for your business. Hire our team of trusted CPAs as your best defense against the complexities of accounting.

In contrast to an accounting computer program, a specialized accountant provides more than basic numbers. If you do not have a background in accounting, you will need a CPA to organize and present the data effectively. An experienced CPA will go far beyond what a computer program will do. We will gather the right information about your business so we can identify what needs to be done and plan accordingly.

As a skilled dentist, you can perform a root canal from afar and spot a cavity from a mile away. When it comes to dental bookkeeping, you may be less confident. With our professional dental bookkeeping services, we can both improve accuracy and efficiency, as well as troubleshoot a specific problem. As a result of taking over your practice’s bookkeeping, you will have more time to attend to your patients and manage your practice.

Here are a few benefits of outsourcing your bookkeeping:

  • By saving time, you can focus on growing your dental practice.
  • By reducing production costs, you are only paying for what you need.
  • Our expertise in this field means you can trust the accuracy of your books.
  • Compliance with dental bookkeeping best practices.
  • Having access to the best bookkeeping software and data backup solutions is

Your CPA will ask questions and propose solutions to problems, such as: what is the financial health of your practice? Are there ways to reduce taxes and increase revenue? Is another team member needed?

Your CPA will provide you with services based on your needs. For example, you may only need your taxes prepared. But if you’re looking for the maximum benefit of a specialized accountant, they can also provide you with added security, tax planning, and expert business advice. Remember, an excellent accountant can save you both time and money while providing peace of mind. 

Our Best Dental CPA office can help you get started in your search for a CPA. 

ADCPA
Url: https://adcpa.org/

Is Your Business Healthy?|Academy of Dental CPAs

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Success is subjectively defined. On the other hand, most people would agree that achieving a healthy work-life balance is one of the most important aspects of success. You can prevent career burnout by establishing healthy business habits. You may be dissatisfied with your career and question the health of your business if you experience any unhealthy habits.

Develop healthier habits. Arrive at work at the same time every day. Being consistent with yourself and your team can make a world of difference in creating a peaceful work environment. Make time to work on your business and stick to it. The stress that comes from administrative work, important decisions, and other responsibilities of an owner can be overwhelming. This eventually affects your team and patient satisfaction. 

Make sure you know your number. Money is not the cause of all evil. It is also not the answer to every problem. It is an essential part of running a successful business. To make smart investments, it’s crucial to know where you stand financially. Consider how purchasing that $30,000 “high-tech solution to all of your problems” will help you provide better patient care. What is the return on investment? How have others in your position made this investment profitable? We will advise you on major financial decisions. You should always keep track of your numbers. We are here to help.

There’s an old saying that says, “You have to spend money to make money,” and that’s certainly the case in dental practice financial management. For dental practices, this often means investing in initiatives that increase patient satisfaction and increase practice visibility. Offer discounts or preferential treatment to long-term customers, such as priority scheduling for appointments. Improve the overall patient experience with the help of new technology and facility upgrades. Last but not least, set a marketing budget for the practice that includes offline and online marketing activities, including localized SEO.

The responsibility of owning a business can be very fulfilling and rewarding. Accomplishing everything on your to-do list can be challenging. Be sure to prioritize your responsibilities and set deadlines. Simply doing this will help you find time for the things that are often put on the backburner. When you are clear about your priorities, it will be easier to say “no” when necessary and to stay focused on checking off important items.

We can assist you in making wise financial decisions. Please contact our Dental CPA accounting office today to schedule a consultation. 

ADCPA
Url: https://adcpa.org/

 
 

The Importance of Professional Bookkeeping for Dentists | Dental CPA Near Me

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You spent years as a dentist, gaining education and experience to open your own practice. If you pursued conventional methods of education and training, you probably did not acquire skills in bookkeeping, much less accounting. Most likely, you focused your dental practice on the areas where you were trained and knowledgeable, which included patient care and relations, administrative duties, payroll, and possibly some basic marketing. No doubt, you’ve had to expand your repertoire as your practice evolved.

Perhaps you have neglected your bookkeeping and accounting over the years. Instead of struggling with your finances, why not hire a dental accounting or bookkeeping service? 

Why should you hire a professional bookkeeper?

Despite your competence in running your dental practice, you may not possess the skills and expertise required to manage your books as effectively and accurately as a professional agency. Just as bookkeepers and accountants do not perform their own dental care, you would be better off placing your bookkeeping and accounting responsibilities in the hands of a professional.

A bookkeeper will manage some of the financial aspects of your practice that a bookkeeper will manage:

  • Company Bank Accounts 
  • Insurance billing
  • Account Payable 
  • Accounts Receivable
  • Cash flow

The Advantages of Outsourcing Bookkeeping

  • By reducing bookkeeping time, more time can be allocated to patient care.
  • Due to fewer operational expenses, the dental practice saves money by only paying for what it needs. As a result, the company may be able to provide raises annually to employees. 
  • As the dentist and owner of your practice, you can be assured of the accuracy of the bookkeeping services provided, allowing you to manage your office more effectively and efficiently.
  • Instead of trying to handle the finances, you and your staff can place much more emphasis on patient care. The result is greater patient satisfaction thanks to improving the overall experience.
  • Instead of you and your staff being responsible for the practice’s bookkeeping, which can lead to uncertainty and errors, you have access to bookkeeping specialists. This approach allows you to enjoy consistency with your bookkeeping practices and have more time to devote to financial strategy, which puts you in a proactive position when managing your finances.
  • In addition, you can also utilize premier bookkeeping programs within your dental practice. The programs will allow you to back up and save your data for years to come, making it easy for you to maintain your financial records reliably and persistently.

The Advantages of Professional Accounting Services for Dental Practices

It is essential to work with a skilled accountant who develops high-level strategies aimed at improving your practice’s financial standing. A professional accountant will prepare financial statements, analyze operational costs, prepare tax returns, and consult with your dental practice on financial decisions. 

Certified accountants provide accounting services tailored to specific industries. As your business grows, your taxes will become more complex. We will help you maximize your tax savings as your business grows. In addition to tax planning and support, we offer insight into current trends and relevant issues to help companies make wise decisions. Whether you’re starting your first company or managing your established one, you can rely on our team to provide you with strategic advice along the way. 

Contact our dental accounting firm if you would like to learn more about how our team can assist you.

ADCPA

3 Time Saving Strategies | Academy of Dental CPAs

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Your most valuable resource is time. Managing your time can be impossible on some days. Think about the strategies you currently use to manage your time. What other tools could you use to protect your most valuable asset? These three methods will help you maximize your time.

Reevaluate Your Management Strategies.

Without spending a dime, you can buy time. Use a new method for tracking practice productivity. Having your team email their task lists for the day can be a great way to keep them organized. Each staff member can describe quantitatively what they do, making it easy to refer back to them. The previous method would avoid micromanagement of employees by asking, “What did you do today?” With a full schedule of appointments, implementing management tasks is difficult.

Since you know what each team member contributes, you can reduce the number of daily meetings. A daily list of completed tasks allows everyone at your practice to be aware of which tasks need to be handled.

Maximize efficiency by using apps.

“Lost time is never found again.” Ben Franklin knew this 200 years ago. How can you use this knowledge in running your practice? You can track your practice with several tools available on your phone. Using these tools can help you become more efficient. Today, you don’t need to manage all aspects of your business manually.

Utilize scheduling apps and software. Apps such as these will help you save time and keep track of your practice’s performance. If you need some guidance, feel free to contact our dental accountants.

Consider Express Check-In.

Losing time is not always the fault of your team. One late patient can disrupt your whole schedule. Make registration easy for your patients. Provide patients with online forms they can fill out before they come in. This will help your entire practice run smoothly. Working with your patients to create a smoother, faster registration is the best way to avoid becoming known as a practice that runs behind schedule. Your patients will not want to fill out redundant paperwork. Whenever possible, rework any documents or forms to prevent your patients from repeatedly filling out information such as their name and address.

Time management is an essential skill for successful business leaders. Set up methods that allow you to measure productivity in concrete, quantitative terms. Make your life easier with technology and let your patients work with you to save time. Think differently about your time management strategies.

Our dental accounting firm can help you implement strategies that will help you be more efficient. Please contact us for a consultation.

ADCPA

Increase Your Confidence As A Dental Practice Leader | Dental CPAs

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The varying nature of confidence can be exemplified as a business leader because of the stressful nature of leading a dental practice. Confidence can grow with a conscientious effort. Our dental accountants have come up with a few ways to increase your confidence in the dental practice, leading to a more positive work environment. 

Consistency is Key

Rapidly changing methods and ideas can prevent a business leader from feeling confident. The business should work for the practice leader, not the other way around.

Gaining a sense of consistency and stability with schedules, rules, and realistic  expectations can lead to an increase in confidence that the practice will run smoothly.

Know and understand the key parts of the dental office, important dates, and the function of each role. You can only become confident in your business operations when you fully grasp the nature of the entire business.

Stay True To Yourself

Being afraid to say what you think can be viewed as a lack of confidence. Speaking your mind, while still having a professional filter, can build confidence as it shows you are part of a team and contributing. Being yourself will also get rid of any notion that team members might have that you are not being a genuine person. Openness and authenticity will not only strengthen your bond with your team, but are also essential traits for effective leadership.

Be Open to Criticism

Change cannot come from one person alone, and not all criticism should be seen as an attack against you. Listen to feedback from team members and customers and tailor that feedback into something positive. Do not let the criticism fester and destroy your confidence. Take it and use it to grow.  Accepting constructive criticism and negative comments can help increase your confidence.

Know What You Are Talking About

Fully understanding what you are talking about can help improve your confidence. If you are a dental practice leader, strive to know everything you can about the office and its operations. If you are speaking about a topic, research everything you can about that topic. Become the expert. You will be better positioned to demonstrate confidence when it is clear that you are invested in what you are discussing.

Confidence can not only make or break your career, it can impact the dental practice as a whole. Contact our dental accounting firm for a dental practice evaluation and analysis to make sure you are working at your full potential.

Signs That It Is Time To Hire A Dental Accountant | Dental Accountant Near Me

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How do you know when it is absolutely time to hire a dental accountant? Occasionally there are certain tasks that you are able to do on your own, but these tasks may be very time consuming. When you are busy with clinical work, it is easy to overlook certain things or make financial mistakes. Here are a few signs that confirm you need to contact ADCPA:

  1. You earn over $200,000 per year– Your odds of being audited once you start earning over $200,000 a year increase to nearly 4%. While this may not seem like a large number, it’s actually an increase of over 300%. Having your financials in order in case this does occur is vitally important once you become a high-earner.
  2. You are a business owner or are self-employed– Utilizing the services of an accounting professional is vitally important for any business owner or entrepreneur. Tax laws change annually. The current US tax code has over 7 million words in it. Making sure that all of your deductions are included, your assets are depreciating properly, and that you are maximizing your tax savings will wind up saving you money in the long run.
  3. You are setting money aside for others– When putting money aside for your children, grandchildren, or anyone you want to take care of, it’s very important to use a financial professional to decide which vehicles to use for tax-deferred or tax-free savings. This includes college savings plans or trusts.
  4. You are incurring large capital gains tax– The key to success in paying big  capital gains tax is paying at long-term rates. An accountant can help you with a Qualified Small Business Tax Credit, can help minimize your taxes, and can help you set long-term payment goals.
  5. You are experiencing rapid growth in your business– Not only is keeping your finances up-to-date time consuming, it’s also complicated. When you’re experiencing rapid growth, it’s time to call in an accounting professional. Having more customers, team members, and vendors is going to require more paperwork and number crunching and can rapidly become impossible for you to keep up with. 

Contact our team of professional dental CPAs today if any of these signs apply to you and your dental practice. We can help you organize the financial aspect of your practice.

Tips For Your New Dental Career | Dental Accountants

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Starting your new dental career can be one of the most exciting (and nerve-wracking) times of your life. Whether you are starting your own practice from scratch or joining one that is already established, there are several important aspects to keep in mind.

Our Academy of Dental CPAs has compiled a quick guide that will help you manage your priorities as a new dentist with confidence and ease.

  1.  Protect Your Work-Life Balance– While you might be used to a heavy schedule during your years in school, don’t let yourself burn out. You deserve a healthy work-life balance. By setting boundaries and following them, you can enjoy your time with friends, family, or hobbies without feeling overwhelmed by your work schedule.
  2. Know Your Strengths – Your practice should center on two things: what you are compassionate about, and what you are incredible at. Don’t pursue a specialty just to appeal to your community if it isn’t something you are excited about. Focusing on your strengths will bring you more satisfaction in your work as well as higher quality to your service.
  3. Manage Your Debt– Dental school graduates usually have a significant trail of student debt following them. Whether you refinance, make extra payments, or choose an alternate repayment plan, focus on reducing your balance instead of simply paying off the interest. Don’t forget to contribute early to your retirement fund, either. The best time to start saving was yesterday.
  4. Successful Practice Management– A dental practice is a business, and a business needs a strong leader. Dental schools don’t typically prepare you for the financial and leadership elements of your career, so don’t be afraid to seek coaches or consultants. With the right mentor, both you and your practice can succeed.
  5. Continue Your Education– The last advice you want to hear as a new dentist is ‘more schooling,’ but it’s true. Once you have settled in, you should look for new opportunities to hone your skills. There exists a world of workshops, lectures, and courses that can further your passion in dentistry, bring you confidence in your work, and improve the value of your practice.

With the right mindset and plan, you can build yourself up as a new dentist, achieving your leadership and financial goals. If you are considering starting your own practice, our dental CPAs will be the resource you need to secure your future in success. Contact our dental accounting firm today to schedule a consultation.