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How to Thrive in Your Practice with Bookkeeping Basics | Dental Practice CPA

The responsibilities of a small business owner may seem endless. When it comes to managing your office’s finances, you’ve probably realized that there are many tasks that require more time and attention than you have available. There are several reliable software packages available for small business owners who wish to conduct their own accounting. However, hiring an accountant who is knowledgeable about your practice area can provide numerous benefits as well. An accountant, for example, would:

 Know your industry well.

Accounting professionals who are specialized in this field will stay abreast of trends that have an impact on your profitability and bottom line. Therefore, they can provide you with practice-specific tax advice in order to ensure that you maximize your annual tax savings. As well as being knowledgeable about new tax laws, they will ensure that you remain compliant in your ever-evolving field.

Offer advice on the purchase of equipment.

In order to keep your practice on the cutting edge, you should invest in the latest technology and equipment. A specialized accountant can advise you on the financial advantages and liabilities associated with these types of investments. This will enable you to make informed decisions that will save you money in the long run.

Be trained to assist you in seeing the big picture.

Accounting professionals who specialize in your industry may be able to provide you with useful comparisons that benchmark your practice against similar practices in your industry. You can utilize this type of information to make informed decisions regarding hiring, adding products and services, or expanding your business.

Provide retirement planning assistance.

You are solely responsible for retirement planning if you are self-employed (as are many dental practitioners). In addition to advising you on the types of financial plans that are appropriate for your situation, a competent CPA can also help you strategize about your long-term financial goals.

Maintain relationships with other professionals in the industry.

Perhaps you would like to purchase a larger facility or add a partner to your practice. If you are seeking assistance with creating a partnership agreement, a specialized accounting firm can connect you with banking professionals or loan officers who are familiar with the nuances of your industry.

Accounting for a dental practice involves much more than preparing an annual tax return. A skilled accountant can provide valuable business advice, assist in analyzing your financial health, provide long-range financial planning, and guide you towards making business decisions that are financially beneficial to your business. Contact us today to learn more about how we can help your dental practice succeed with our small-business accounting services.

The Best Ways to Plan for Retirement | Best Dental CPA

The importance of putting in place a retirement plan should not be underestimated, regardless of how long you have practiced dentistry. Taking steps to prepare for your future is one of the most significant decisions that you can make in your career. Take action now in order to create a realistic savings plan that will allow you to enjoy a comfortable retirement. As you contemplate your retirement strategy, consider the following questions:

What is the amount you are currently saving? As part of your meeting with our dental accounting team, you will review the details of your P&L, taxes, and long-term savings objectives. In order to ensure that your savings are able to outpace inflation during retirement, it may be beneficial to change some of your investments. 

Have you developed an exit strategy? When you retire as an owner or partner of a dental practice, it is advisable to create a written agreement that specifies who will buy you out. Consider what you will do after you retire, whether you plan to work full-time or part-time.Taxes can have a significant impact on your retirement savings. All of these factors should be considered when developing a retirement strategy. We can assist you with the details of the transition process through our dental accounting firm.

When you retire, what do you plan to do? If you have your heart set on starting a new business, traveling more, or taking up a hobby, you may need to plan for shifting priorities and increased living expenses. As the economy continues to change, it is worthwhile to seek advice from experts who can help secure your lifestyle.

What is the expected length of your retirement? As a result of advances in modern medicine, life expectancy has increased dramatically. You may wish to plan as if you will live to be 100 years old and estimate your needs accordingly, depending on your health and family history. For example, have you considered long-term care insurance?

What other expenses will be affected? Although retirement may eliminate your commute, your work wardrobe, and team lunches, for most people it is a time of higher costs for medical care and prescription drugs. Get in touch with us to discuss the types of budget changes that are likely to occur during retirement.

Don’t let decisions about your future creep up on you, even if you are young and healthy. Contact our office to schedule a complimentary initial consultation if you would like more information regarding tax planning and planning for a comfortable retirement. Dental professionals rely on us to assist them in achieving their professional goals throughout their active working lives. You can rely on our team for assistance.

The Benefits of Patient Complaints | Dental CPA Near Me

Complaints from patients are never welcome. It is unfortunate that even the most compassionate dentist with an exemplary team who follows procedures meticulously can still receive complaints. Take advantage of them.

Whether the complaint is true or not, the most important thing to remember is to handle it with care. About 94 percent of people use online reviews to choose a business; you do not want a complaint to snowball into a bad review. It can quickly result in a loss of revenue. Therefore, responding to them is crucial. 

You and your team may feel frustrated, discouraged, or annoyed when complaints are brought to your attention. It’s normal. You may also feel cavalier about a complaint that you view as minor. There are some complaints that are objective, such as office décor, wait times, or insurance issues.

Complaints should be handled with respect.

It is important to treat even trivial or unfair concerns with respect. It means listening to the patient, taking their complaint seriously, and promising to investigate. 

You should follow these steps:

  • Thank your patients for bringing their concerns to you without judgment: “I appreciate you taking the time to tell me about your experience.”
  • Repeat the complaint back to the patient: “So you’re saying that you waited 40 minutes for your appointment and nobody checked on you?” “My sincere apologies.”
  • Take action to correct the situation, if necessary. “There are times when things get backed up.” In case of a delay, I’ll make sure the front desk team informs you.” 
  • Thank them again: “Thank you for letting me know what happened.” Thanks for putting your trust in our practice. “We’ll do whatever it takes to ensure you’re satisfied.” If you follow through on your commitment, you’ll earn loyalty from that patient. Complaints provide you with a chance to cement a patient’s trust.

Maintain patient loyalty

The importance of maintaining patient loyalty cannot be overstated. It can lead to fewer rescheduled or canceled appointments, increased case acceptance, and even referrals to friends, family, and social networks. Taking care of one complaint correctly can result in hundreds or even thousands of dollars in revenue over time. Furthermore, it is the right thing to do.

Patients who feel their concerns were not heard will unlikely refer others to you or, more likely, complain online and on social media.

Keeping your revenue flowing depends on satisfied patients. We’re here to make sure it stays strong. For all your dental accounting needs, contact us today.

Accounting Solutions for Business Challenges | Best Dental CPA

In addition to helping you with your taxes, accountants can offer creative solutions to your business challenges. Their training allows them to understand how businesses work and create solutions that others might not think of. These are just a few of the creative ways accountants can help you solve business problems.

Identifying your business type

Accountants often specialize in serving specific types of clients, such as small businesses, large corporations, or high-net-worth individuals. Small-business CPAs understand your unique challenges and can use that knowledge to help you grow. An accountant who understands your field is uniquely qualified to assist you because they understand your issues in context and are able to consider the issue from all relevant perspectives. Because they understand the business, they can recommend the right solution for you.

Taking a long-term view

When you own a business, you want to please your clients and grow it. An accountant can save your business thousands of dollars and give you back the time you spend on forecasting, tax preparation, and bookkeeping. You need an accountant who can see both the big picture and the details of your business. By foreseeing problems, they can prevent you from making a mistake. A new perspective that considers all consequences may be the key to solving a financial problem in your industry. Accountants can make a significant contribution to your bottom line because of this.

A creative and strategic approach

Problems that are difficult require creative solutions. An accountant can keep track of your cash flow if you’re starting out and need help with a business plan or entering a high-growth phase. They can help you manage your money by taking an objective look at your overhead and costs. Accounting professionals can create innovative solutions that meet your long-term goals by combining their knowledge of your field with a high-level, strategic approach to your finances.

Take steps to avoid IRS audits.

The likelihood of an audit is small, but every business should be prepared in case one occurs. If you are working with a good accountant, they will have the detailed records needed to satisfy the government’s questions; if you are not working with an accountant and you are subject to an audit, you may want to hire one to save time, stress, and money. A CPA can also help you prevent future problems, such as spotty record-keeping and innocent errors.

Our accounting firm is committed to helping you navigate your business finances in an ethical and compliant manner. Let our team of professional accountants help you find the solution for success you have been seeking if you are facing an accounting issue that demands skillful handling. Contact us today to schedule a consultation

Dental Practice Start-Up | Dental Accountants Near You ADCPA

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It can be a very rewarding experience to own a business. Planning, hard work, perseverance, and investment are essential to the process. It can be a wonderful transition if you are able to endure the start-up and early development phases.

Strategy for entry

In most cases, dental practices begin by using the following entry strategies:

  • The purchase of a practice: This entry option may seem easier than the others, but it has its own challenges. In some markets, the demand for existing practices is high, but none are available for purchase. Other markets may not have dental practices located exactly where you would expect them to be.
  • Starting from scratch: By starting from scratch, you are able to begin without any legacy issues, such as old pricing, old software, or past client service issues.

Practice Location

Choosing a location for a new dental practice is more than important; it’s imperative. This is why you should use an expert who specializes in dental office spaces and can select locations using software tools. A dental and medical office space specialist who can negotiate on your behalf without a conflict of interest, not a general commercial real estate agent that works with all types of businesses.

The financial considerations

You should honestly assess your financial and emotional readiness before making this leap. As start-up businesses require sweat equity, this move must be made at the right time in your life. In most practices, cash flow is negative during the start-up and development phases, so you need cash on hand to cover household expenses and maintain insurance coverage.

Lead generation and marketing for dental practices

Practitioners need the most assistance in this area since they have not been trained in marketing, pricing, or practice management. During college and as an apprentice, the emphasis is on performing the work, not generating leads.

To build a business today, hanging out your own shingle is not enough, and referrals are insufficient to achieve your revenue goals.

Costs associated with starting a business

Start-up costs vary depending on your revenue goals, entry strategy, and geographical location. Offices in large cities near office parks will also cost more than offices in lightly populated bedroom communities.

Commercial real estate firms understand dental practice needs and costs very well. Getting their expertise and insights costs you nothing.

Also, dental practice lenders understand the industry extremely well and can provide additional guidance. In other words, you do not want to work with a local retail bank. Obtaining financing from dental practice lenders who understand the industry inside and out will be your goal.

You will need a dental practice CPA firm on your team, not a generalist CPA firm. You will save time and reduce your risk with a dental practice CPA on practice acquisition due diligence, business structure, entity selection, and accounting and tax issues. As you embark on your new practice journey, they can suggest dental practice real estate firms, law firms, lenders, and other specialists. By working with specialists who understand the dental industry, you will lower your risk and save time. Contact our dental accounting firm to learn how we can help

ADCPA
Url: https://adcpa.org/

The Most Common Dental Bookkeeping Errors | Dental CPA

Simple accounting mistakes can cost dental practices hundreds or even thousands of dollars. In the following paragraphs, our dental accounting firm will provide a list of the top dental bookkeeping errors.

Keeping track of transactions from a previous period

Each month, dental practices should “close their books,” which includes reconciling all of their accounts and preparing financial statements. In addition to catching major mistakes, closing the books on a monthly basis can also help practices avoid discrepancies between financial reports and balance adjustments. These discrepancies can lead to a variety of problems and even incur penalties from the IRS. The problem can be easily fixed by closing the books every month.

Choosing not to use an industry standard chart of accounts

A chart of accounts shows how money or credit is spent or received for each type of item. For dental firms, this will include a list of clients, insurance companies, office expenses, payroll, and more, all with their corresponding expenditures. A chart of accounts specifically designed for the dental industry can help firms better manage their accounts, streamline expenses, and determine how to increase profits.

Misconceptions about cash flow and profit

A dental firm’s profit and cash flow are separate and unique entities, and understanding each is vital to success. Profit is calculated by subtracting total expenses from total revenue. Profit does not necessarily indicate there is cash available for large purchases; the cash flow statement determines this. A dental practice’s cash flow is determined by its cash flow equation, which factors in receivables, inventory, and depreciation expenses.

Misclassifying personal expenses and distributions

It depends on the structure of their practice whether dental practitioners take a salary or receive regular distributions. As cash distributions are neither salaries nor payroll, they should not be included in the firm’s expenses. It is possible for a company to underpay its taxes if distributions are not properly classified. Personal expenses, such as estimated taxes, food and drink, entertainment, and similar expenses, are not tax deductible and should also be recorded as distributions.

Choosing an accountant for general practice

Since dentists are specialized practitioners with specific needs, shouldn’t their CPAs specialize in dental professionals’ needs as well? Our dental accounting firm focuses solely on serving the accounting needs of dental practitioners and their firms. As a result, dental firms can avoid costly mistakes, maximize profits, and ensure practitioners receive the specialized assistance they need, whether during tax season or year-round. Contact our dental accounting firm today for more information.

ADCPA
Url: https://adcpa.org/

What Can a Dental CPA Do for Your Practice? | Dental Practice CPA Near Me

Why should I work with a dental CPA instead of a traditional, general CPA? By utilizing the skills and knowledge of a dental CPA, you’ll be able to manage your practice more efficiently, so you can devote more time to dentistry and become more profitable.

You can gain valuable information about the health of your practice from a dental CPA, get assistance with planning to ensure that you will achieve your personal and professional goals, and get excellent advice on how to improve profitability from a dental CPA firm.

The three main areas of focus for a dental CPA when setting up a new client relationship are:

A solid bookkeeping system

The first step in working with a dental CPA is to get your bookkeeping in order. While this is the most basic service that a CPA can provide, a dental CPA’s industry knowledge can help ensure that the information is presented clearly and in a useful way. You can arrange your accounts so that the important information is prominent and easy to compare.

Your dental CPA will also make sure that accounting principles are being applied correctly to your bookkeeping so that an outside agency looking at your books will not question the practice’s presentation or health. Many dental CPAs offer monthly bookkeeping services along with monthly or quarterly meetings to review financial statements, so you can understand and act on the information. Dental CPAs provide a wide range of services, but bookkeeping is the foundation of all of them.

Dental Practice Planning and Projection

Developing a long-term plan and making projections is crucial for your practice’s success. Planning and projections can be done by a dental CPA to ensure that your practice is on the right track and on track to meet your goals. Due to their familiarity with the collections and expense patterns experienced by dentists, dental CPAs are generally better equipped to make accurate projections for your practice. Having created a reasonable projection, a dental CPA can assist you in determining your initial plans or executing existing ones.

The three things most dentists want to plan for are taxes, retirement, and the education of their children. Are you utilizing tax strategies to minimize your taxes? Will you be able to retire comfortably and on your own terms? Will your children and grandchildren (if you have any) be able to attend college?

Services provided by dental CPAs

The majority of consulting services provided by a dental CPA will be in conjunction with other services. For example, during a quarterly bookkeeping meeting, a dental CPA will typically review your monthly or quarterly statements in order to assess the profitability of your practice and identify areas for improvement or investigation. During half-yearly planning, a dental CPA may review your fee schedules with you to ensure that you are not undercharging or overcharging.

During year-end planning, a dental CPA might discuss equipment and expansion plans with you to ensure that your capital investment will result in a healthier practice and more enjoyable dentistry for you. As a result of this type of consulting, your dental CPA can help you identify trouble spots in your practice or identify opportunities that can be utilized to your advantage. Although a general CPA may be well equipped to help with financial consulting and a dental consulting firm may be well equipped to assist with practice management, a dental CPA can provide both financial and practice management services.

You can rely on our dental accounting firm for assistance. Get in touch with us today to schedule a consultation.

ADCPA
Url: https://adcpa.org/

Advantages of Outsourcing Your Dental Accounting | Best Dental CPA

You have covered all the bases when it comes to providing dental services efficiently and confidently. In contrast, when it comes to your practice’s bookkeeping and accounting, you may not be as confident and always aware that your time would be better spent in other areas. It is likely that you did not choose to become a dentist in order to worry about accounting and paperwork.

Maybe you’ve questioned the accuracy of your bookkeeping, or you want to improve efficiency (especially your own). It might be time to consider outsourcing your bookkeeping and accounting if one or both of those scenarios apply.

These functions can have a significant impact on your practice’s productivity and profitability.

  • Rather than spending time on bookkeeping, you can spend it on improving the overall experience of your practice and patients.
  • An expert will handle your books, so you can be sure they are accurate and make well-informed decisions about your practice. As a result of better bookkeeping, tax time often brings fewer surprises.
  • Having accurate accounting records will give you peace of mind. You will be able to keep a better handle on cash flow and know where you stand at all times by letting the experts handle it for you. Therefore, you are prepared for any emergency that may arise (for instance, a global pandemic).
  • Having a financially healthy practice facilitates a strong personal financial plan for you, including aggressive retirement savings.

Do you already outsource roles like IT and/or HR? When it comes to such a vital business function as your finances, outsourcing to experts who specialize in dental practice finance makes good business sense. As our world becomes more virtual every day, it makes sense to consider a virtual bookkeeping and/or CFO solution sooner rather than later.

Accountants who specialize in dental practices offer expert accounting services. Using their accounting and bookkeeping services can result in improved cash flow management, accurate record-keeping, and meaningful data reporting for better, more streamlined financial management.

A dental accountant can help you by providing:

  • Savings: You won’t have to pay for employee benefits, payroll taxes, hiring, and training.
  • A wide breadth of experience: You get access to experienced CPAs with a breadth of knowledge of the industry, as well as certified bookkeepers who you can rely on.
  • Experience: You have the support of someone who can assist you whenever you have questions.
  • Flexibility:  When you require assistance with some or all of your bookkeeping requirements.

Dental accountants are dedicated to helping you with your financial tasks so that you can focus on what is most important to you. Their services include account reconciliations, bill payments, payroll journal entries, financial reports, time-saving tools, and remote working options.

If you feel overwhelmed by any of these tasks or simply are tired of doing your own bookkeeping, you should probably outsource it.

Our dental accounting firm successfully assists dentists with their bookkeeping needs. If you would like an expert from our team to help you and your practice succeed, contact us today!

ADCPA
Url: https://adcpa.org/

Do Dentists Need a Dedicated CPA? | Best Dental Accountant

There are a number of reasons why dentists need a dental CPA. You can grow your revenue and cut costs with the help of financial housekeeping.

In addition to keeping track of your books and maintaining your accounts, dental accountants are also responsible for ensuring that you take advantage of all government schemes and programs that support small businesses. Additionally, they ensure that you are always in compliance with the policies. Dental CPAs are also responsible for tax preparation and optimization.

Many experienced CPAs offer virtual CFO services to help dentists scale their practices through budgeting, forecasting, planning, and strategic implementation of financial decisions. The guidance and mentorship of a virtual CFO is invaluable for ambitious dentists who are interested in expanding and scaling their practices.

Dental Accountants: What You Should Consider

It is common for small business owners and dentists to overlook some crucial elements when choosing a professional dental accountant, which can end up costing them a lot in the long run. When hiring a dental CPA for your practice, consider these factors.

1. Provided Services

CPAs can either be generalists or specialize in serving a specific segment of the industry. Ask your CPA about their range of services and how any additional services that they recommend will impact your revenue at your next meeting. If your CPA only offers a few services, it may be time to switch. 

2. Dental accounting knowledge and experience

When searching for a dental CPA, you should consider the level of experience and expertise they bring to the table.

An experienced dental accountant will optimize your tax position, claim necessary deductions, and take advantage of specific government programs. In addition to ensuring accounting compliance, dental accountants can often be a jack of all trades and help your business grow.

3. Transparency and communication 

Many dental accountants don’t disclose their activities and strategies transparently due to the complexity of the field. It may not be a good fit for your business to hire an accountant who isn’t openly communicating, guiding, and mentoring you. Transparency and the quality of communication are therefore crucial factors to consider.

4. Providing value for money 

Revenues and costs are two essential components of a business. Hiring a dental CPA should provide you with more value than the cost itself in order for it to be a worthwhile investment.

Choosing the best option doesn’t mean choosing the cheapest. Consider the cost and benefits of your investment before making your decision.

5. Fees that are clear and transparent 

Dental bookkeeping and accounting costs need to be transparent and clear in order for you to plan your dental expenses effectively. Wouldn’t it be nice to avoid unpleasant surprises down the line? The dental accountant you hire should offer transparent pricing and be open to discussing all the costs involved in hiring them before you sign on.

6. Having the ability to answer complex questions 

You rely on your dental accountant for a variety of things related to money and finances. Would you want to work with someone who can not answer complex questions? It is unlikely that you would. A dental CPA with a background in accounting should be able to answer any money-related question you may have openly and transparently.

The best people to work with are those who are always able to provide you with the correct answers whenever you have a question. It is only possible for them to accomplish this if they have a clear understanding of what they must do and what dental practices require from their accountants.

So there you have it! We hope that you now understand why dentists require specialized dental accountants. Our accounting firm specializes in assisting dentists. To schedule a consultation with one of our experts, please contact us today.

ADCPA
Url: https://adcpa.org/

Identifying Overspending in Your Practice | Best Dental CPA

You are responsible for many non-clinical tasks as a dental practice owner, including human resources, tax filing, contracts, and insurance. When ignored, these things can inhibit growth and even cause significant problems in a business.

The practice of keeping accurate accounting records is known as bookkeeping. A company’s sustainability depends on its records. In addition to managing cash flow and meeting financial obligations, accurate bookkeeping helps businesses plan their investments.

In the eyes of some business owners, it is a tedious task that must be completed before their CPA can file their taxes. Keeping clean books can help you do more than just file your tax return on time. You can use it to spot fraud, map business growth and identify areas of overspending.

Types of financial ledgers

A financial ledger shows your company’s profit and loss. A comparison is made between the revenue coming in and the expenses going out.

Profit and loss statements and balance sheets are the most important ones to review.

Balance Sheet

Essentially, a balance sheet is a statement of a company’s assets, liabilities, and owner’s equity at a particular point in time. The balance sheet is typically prepared at the end of a set period (e.g., quarterly or annually). There are two columns on a balance sheet. On the left, you can see the company’s assets. Liabilities and owner’s equity are listed to the right.

A balance sheet provides important information to a business owner about the health of the company. The owner, however, isn’t the only person who looks at the balance sheet. If you plan to sell your practice, lenders, investors, partners, or buyers will review it when you apply for financing.

Profit and loss statement

In finance, a profit and loss statement (P&L) shows a company’s revenues and expenses during a particular period. This statement explains how revenues are transformed into net income.

In addition to recording the practice’s collections, the P&L separates your statement into two sections:

  • Direct expenses: costs that vary according to production. As you see more patients, these costs will increase—like lab fees, supplies, hygiene, and chairside salaries.
  • Fixed expenses are costs that are specific to your company and remain constant regardless of the quantity of goods or services produced.The cost of your building rent, insurance, pension, or subscriptions, for example, is the same month to month, regardless of your production level.

By tracking both direct and fixed expenses, the business can identify overspending or areas for growth.

It is important to be organized.

No matter who manages this report, whether you do it yourself or hire a bookkeeper, a poorly organized P & L will not be helpful. Expenses should not be listed in separate categories on five pages. As with tracking your personal expenses, categorizing your expenses allows you to focus on the big picture. You will not use it if it is not usable.

An organized P & L allows you to sit down every year and review where your business is this year to date, last year, and even the year before. As a result, you can spot outliers and trends.

A monthly review is also very important. There may be things that come through that you will not remember at the end of the year. For example, if your insurance fees were extremely high last month, you will remember that you had paid your annual insurance premiums. Given everything you have going on, it is unlikely that you will remember each detail like this at the end of the year.

A CPA can not proactively plan your tax projections if your books are not up-to-date. Furthermore, if you only prepare them for a six- or nine-month period, they will be unable to strategize for you.

Outsourcing

It is important to leave financial statement management to a professional to ensure that all the categories are reported consistently, as well as to ensure that bank and payroll reconciliations are done on a monthly basis, which allows the owner to ensure that they are always tied to cash. It is also possible to detect fraud by staying organized.

In addition to other benefits, having good, clean books will make filing your tax return easier for your tax preparer. It can save you both time and money on your tax bill. As a result, it is cheaper, but it also prevents errors from occurring. You pay more in taxes when stuff gets missed.

It’s not only time-saving to have a professional accountant handle your monthly bookkeeping; it’s also strategic.

Rather than categorizing expenses, owners can now use the output strategically to enhance their businesses. It could be that accounts receivable have been running too high and have gone unnoticed, or lab supplies have gradually risen over the past six months. Early insight into changes can increase profitability in the short and long term.

ADCPA
Url: https://adcpa.org/