bookkeeping | dental professional with reports

Key Bookkeeping Terms Every Dentist Should Know

Bookkeeping

Nothing brings a growing dental practice to a screeching halt like cash flow problems. Basic bookkeeping errors can create a cascading effect, resulting in severe financial problems. As a dentist, you are an expert at your craft. You know all about keeping teeth healthy. Unfortunately, dentists are not normally aware of the needed steps in creating and maintaining an accurate bookkeeping system so that they can become fully aware of the true financial status of their dental practice.

As a dentist, here are a few bookkeeping terms that you should be aware of:

Cash Flow and Profit. There Is a Difference.

Dentists, and the staff that they rely upon to keep their books, are not typically aware of how to read and truly understand financial reports. When you ask for certain information for a particular time frame from your bookkeeper, you may be provided instead with profit figures. You may mistakenly believe that this represents the amount of cash available to you. But this profit number is not representing the available cash for purchases. This can lead you to mistakenly make purchases, incurring significant charges and overdraft fees.

Profit comes from revenue less expenses over a given time frame. The term “cash flow” refers to the money that moves to and from your business throughout the month. Your profits will be determined once you have completed a profit and loss statement. Once you complete your cash flow equation and factor in inventory, accounts receivable and depreciation expenses, you can determine your cash flow.

Chart of Accounts

An industry-standard chart of account is necessary for tracking the amount of money that your practice has spent or received, as well as for the preparation of financial reports. When you establish your accounting system, special accounts must be created based upon dental industry standards. Dentists commonly mistakenly use a general chart of accounts, resulting in an expensive mistake since you will not have the insight necessary to effectively streamline and grow your dental practice.

Closing the Books

You should be closing your books on a monthly basis. This activity includes the reconciliation of various accounts, preparation of your financial statements, and more. You should not be entering transactions after closing your books.

A common mistake that dental practices make is mistakenly entering transactions from a previous time period. This leads to adjustments and balances that do not match the financial reports or bank balance. Left undetected, this causes all future reports, cash figures, and tax documents to be incorrect. This is a costly mistake that can result in harsh IRS penalties.

Importance of Partnering with an Experienced Dental Accountant

When you work with an accountant who has a specialty in dental bookkeeping, you can be assured that you are fully aware of the financial condition of your practice. This means that your financial statements will meet IRS guidelines, General Acceptance Accounting Principles, and dental industry standards. Contact Ash Dental CPA to learn more about customizing your accounting services. 

bookkeeping for dentists | dentist

Bookkeeping for Dentists: Prioritizing Your Practice for Maximum Success

Bookkeeping for Dentists

Your professional training is as a dentist, not an accountant. Should you really be handling your own bookkeeping? There are many advantages to hiring a professional that specializes in bookkeeping for dentists.

You didn’t go through the time and effort of attending dental school so that you had to worry about the hassles of tax preparation and bookkeeping. It doesn’t matter how skilled you are with dental instruments, your practice requires solid financial management to remain profitable and survive.

Although you are rightly focused on your patients, your dental practice is ultimately a business. By neglecting or ignoring the financial aspects of your dental business, you will be compromising patient care. So although considering messy things like margins, revenue and reconciliation may not be what you love, it is completely necessary so that your patients receive outstanding care for their mouth, teeth, and smiles.

Hiring a Professional

Although you are intelligent and are likely completely capable of taking care of your own bookkeeping, you should ask yourself if you should be the one handling it. Just because you can do something does not mean that you are the best person for the task. Intelligence is no substitute for the training that a skilled professional bookkeeper has at their disposal. In the same way that bookkeepers do not take dental work on themselves, you should not be dealing with the hassles of your own bookkeeping.

Depending upon the size of your practice and its associated resources and needs, it may make sense to hire more than one professional bookkeeper. By going with multiple professionals, you can help to prevent nasty things like fraud and embezzlement, as well as expensive mistakes. While you do not need to hire a massive team of accountants, some oversight may prove valuable.

Begin with a Contract

In most cases, dental practices do not require a full-time bookkeeper to maintain their financial houses. But it is not uncommon for dental practices to have an office worker who spends several hours a day performing these types of functions. For these practices, it would be beneficial to hire a professional so that they are not paying someone to pore over paperwork for eight hours a day when only two were needed. You would only be paying for the amount of work that you require and receive.

Going Virtual

In the age of the Internet, bookkeeping for dentists can be performed remotely. One benefit of going with virtual services is that you have access to a much deeper talent pool.

Instead of carefully searching in your local newspaper for a reliable bookkeeper, you will have your pick of the finest financial professionals in the industry. This gives you a better chance of locating a bookkeeper with a specialty in dental administration.

Bookkeeping for Dentists Next Steps

As with any small business, your dental practice does not need expensive audits, hidden embezzlement, or simple inefficiency. Consider the dental health of your patients. A closed office cannot fill a cavity, perform a root canal, or set a crown. Inappropriate dental instruments can lead to undesirable health outcomes, but so do improperly maintained books. By going with a virtual bookkeeper, both you and your patients will keep a smile on your faces.

Contact Ash Dental CPA to learn how your practice can benefit from customized accounting services. Call (508) 458-6789 or book online here.

dentist office | local dental cpa

Why You Should Choose A Local Dental CPA

Local Dental CPA

A dental CPA is experienced and well-educated to help dentists achieve their financial goals. Managing your practice is challenging enough. That is why hiring a local dental CPA is essential to protect your finances and assets. 

At Ash Dental CPA, we offer a variety of services such as accounting, bookkeeping, tax planning, and more. Learn how choosing a local dental CPA can help you and your practice! 

Focus On Your Patients, And We’ll Focus On Your Finances

Your practice offers several dental services to meet the needs of your patients. However, operating a seamless practice requires a lot of back-end work which includes financial management. A local dental CPA can assure that your accounting and bookkeeping are well-maintained. This offers peace of mind with regards to cash flow, tax planning, and more. And if you are ever notified of a tax audit, your local dental CPA can represent you to protect your finances and assets.

Services Offered

Consider Ash Dental CPA. Our firm has over 20 years of experience assisting dentists and their unique practices. As a result, we offer a variety of services to assure we are delivering the best financial guidance. 

  • Accounting
  • QuickBooks Software Set-Up and Training
  • Bookkeeping
  • Payroll Set-Up and Processing
  • Financial Analysis and Consultation
  • Tax Planning, Preparation, and Filing
  • Monthly Financial Reports
  • Tax Audit Representation
  • Review and Compilation
  • Practice Management
  • Dental Practice Purchase and Sale Guidance
  • Practice Incorporation

We want to help our clients achieve their goals That is why we tailor our services to meet your individual needs. For instance, tax planning is customized for each client to take advantage of tax-saving opportunities. Overall, it is very important that dentists seek guidance from a skilled dental CPA to prevent issues with cash flow and tax obligations.

Choosing A Local Dental CPA

It is never too early or late to choose a dental CPA. As a recent graduate, getting your finances in order is essential for a promising career. Likewise, an established dentist still needs a dental CPA to assure they are reaching their full financial potential. 

Learn More

Operating a successful practice requires a committed team of professionals. Therefore, hire a local dental CPA to oversee your finances and opportunities for growth. Ash Dental CPA is always accepting new clients and offers complimentary consultations. Schedule a virtual meeting to learn how our services benefit you! Call (508) 458-6789 or book online today!

dental cpa | hybrid dental practice

Dental CPA | Converting to a Hybrid Dental Practice

Dental CPA

Your practice may have undergone many changes to stay afloat during this unprecedented time. Plastic shields, PPE, temperature checks, and more have been implemented to comply with guidelines recommended by the CDC and ADA. Many dentists have been wondering how else they can grow their revenue. At Ash Dental CPA, we recommend going hybrid! Learn what a hybrid practice is and how you can do it too.

What is a Hybrid Practice?

A hybrid practice operates in-person and virtually. This includes the staff and patients! How? Not all staff members need to be present. For example, the appointment coordinator can easily work from home. Likewise, those who manage the billing and scheduling can also work from home. The dentist can utilize telehealth platforms to meet new patients interested in elective procedures. Those who decide to move forward with the procedure can then schedule an in-person exam to finalize the details of the procedure and cost.

How Does A Hybrid Practice Fit My Bottom Line?

Consult with your dental CPA. He or she will review your financial health and current work structure. Upon their findings, they’ll make recommendations on how your practice can successfully convert to a hybrid structure. We highly recommend exploring this route to assure your short and long term financial goals are met. 

For instance, dentists are able to meet with more potential patients with telehealth. This platform allows them to introduce themself and their practice, while discussing potential treatments the patient may consider. In other words, telehealth allows you to expand your reach and brand more personally. And if you schedule your telehealth appointments right, your practice will operate more smoothly while reducing in-person consultations and lost time.

What Consultations Should I Offer Virtually

Many dentists offer similar services. If you offer Invisalign, this would be a great opportunity. You can meet with prospective new patients virtually to discuss what Invisalign is, how it works, and what to expect. Additionally, many patients may have questions that they want answered before they step into an office. Therefore, this virtual consultation benefits both parties. Other great consultations are teeth whitening, dental implants, veneers, braces, and CEREC. These procedures require a lot of patient trust and education, making them perfect for virtual consultations

How Can I Get Started?

Schedule a consultation with Ash Dental CPA. We have over 20 years of experience assisting dentists and their unique practices. We’ll discuss how converting into a hybrid practice can benefit your goals. Call (508) 458-6789 or book online today!

cpa for dentists | dentist office

CPA for Dentists | Contact Ash Dental CPA

CPA for Dentists 

Dentists have a unique business dynamic. That’s why hiring a professional CPA for dentists is essential. In fact, Ash Dental CPA has been assisting dentists for over 20 years. Our office offers a wide range of services including accounting, bookkeeping, practice purchase/sell, practice incorporation, tax planning, tax preparation and filing, and much more! We are located in Framingham, Massachusetts, and serve dentists nationwide.

Learn more about why hiring a CPA for dentists benefits your practice and how we can best serve you. 

Why You Should Hire a CPA for Dentists

Becoming a CPA requires education and general training. However, when a CPA chooses to specialize in a particular industry, professionals of that industry benefit the most. That’s because the CPA has dedicated and completely immersed themself into knowing the industry and market trends thoroughly. For example, a CPA for dentists is knowledgeable of current market trends, financing laws, industry-specific challenges and solutions, and more. In other words, a CPA for dentists is as essential as any other staff member of your practice.

How Does Ash Dental CPA Assist Dentists?

As mentioned above, Ash Dental CPA has been helping dentists succeed for over 20 years. Our firm has helped dental professionals overcome a variety of financial challenges. If you are a recent graduate and hope to one day manage your own dental practice, hiring a CPA for dentists is recommended. Likewise, a more established dentist with numerous offices needs a CPA for dentists. A professional that fully understands the unique dynamics of managing several practices.

At Ash Dental CPA, our team is committed to staying up to date on marketing trends, tax law changes, industry challenges, and more.  Below is information on our most popular services and how they benefit your practice and financial goals. Moreover, contact us to learn more.

Accounting

Every dentist has short and long term financial goals. With our accounting services, we will help you understand your current financial health and how to improve it. In addition, we will guide you through any decision-making like acquiring a new practice to assure it is in your best financial interest.

Bookkeeping

Manage your cash flow with bookkeeping that’s designed for dentists. We will be sure your accounts payables and receivables are maintained, bank accounts are reconciled, payroll is processed on time, financial reports and balance sheets are generated, and more. Overall, by maintaining your bookkeeping and accounting under one roof, other services such as tax planning and filing run more efficiently.

Tax Planning, Preparation, and Filing

In short, tax planning offers insight into what your tax obligations are likely to be. By planning ahead, your CPA for dentists can help you navigate your money to benefit from tax-saving techniques. Additionally, your bookkeeping maintenance will make filing your taxes easy and less stressful.

Tax Audit Representation

Should you or your practice receive a state or IRS tax audit notice, contact us. We offer tax audit representation to protect you and your assets.

Purchasing and Selling Your Practice

There are several steps involved in purchasing and selling a practice. It is always recommended to seek guidance from a CPA for dentists before moving forward with the transaction. For example, there are many situations when the purchase or sale is not the best for a dentist and their financial goals. Or, it could be a great decision but must be made under certain circumstances to assure a lucrative outcome. 

Learn More

These services are just the tip of the iceberg. Learn more about how we customize all of our services to each client’s needs. Call (508) 458-6789 or book online today!

dental practice - Bookkeeper for dentists

Bookkeeper for Dentists | Bookkeeping Through COVID-19

Bookkeeper for Dentists

COVID-19 is still relevant for every industry, including dental. Although many practices have reopened and are implementing new protocol measures, bookkeeping needs to be at the forefront as well. Dentists have a lot of responsibilities. Bookkeeping should not be one of them. That is why professional bookkeepers should be maintaining your financial records to assure your cash flow is not interrupted. 

Learn more about bookkeeping below and contact Ash Dental CPA today.

What is Bookkeeping?

In brief, bookkeeping is the financial record keeping of an organization or business. Your professional bookkeeper for dentists reviews transactions, reconciles bank statements, generates financial reports, and more! With their help, your accountant can understand your practice’s financial health and advise you accordingly. Likewise, you can prevent issues such as cash flow interruption, missed payments, and unpaid invoices.

Here is a quick summary of how your bookkeeper for dentists helps!

Generate Financial Reports and Balance Sheets

Obtain an accurate understanding of your revenue, profit, expenses, and more.

Manage Account Payables and Receivables

Never miss a payment and stay on top of invoices to assure a steady cashflow.

Reconcile Your Bank Accounts and Operating Credit Cards

Assure that every transaction is accurately accounted for. You’ll need this information for tax records and to detect unusual transactions that may be fraudulent.

How to Maintain Your Bookkeeping During COVID-19

Maintaining your bookkeeping records during the pandemic is simple. Hire a bookkeeper and choose virtual services. You’ll help flatten the curve while staying current on your bookkeeping. In fact, virtual bookkeeping has existed for years but has now become even more popular. This is due to the need of keeping America operational while minimizing unnecessary contact. 

How Does Virtual Bookkeeping Work? How Does It Help My Practice?

Your bookkeeper for dentists will customize your services to best fit your needs. In general, virtual bookkeeping is done online using cloud software such as QuickBooks. Have receipts? Just upload them using the software. Your virtual bookkeeper for dentists will review and record them as usual. Additionally, meetings are held via video conferencing and screen sharing. 

Schedule a Call With Us

Learn more about hiring a bookkeeper for dentists. Ash Dental CPA has over 20 years of experience assisting dental professionals and their unique practices. Our services include bookkeeping, accounting, financial guidance, tax planning, tax prep and filing, tax audit representation, practice buy and sell, and more! Call  (508) 458-6789 or book online today. Our team looks forward to assisting you.

tax day july 15th

July 15th Tax Day |  Have You Filed Yet?

Tax Day

The days are approaching to file your taxes. Due to COVID-19, this year’s tax day was postponed to July 15th. Many Americans have filed already but there are several who have not yet. As a dental provider, you may have been quite busy maintaining your practice to stay afloat during the pandemic. Preparing and filing may have been pushed to the bottom of your to-do list. Fortunately, Ash Dental CPA offers tax preparation and filing for dentists. Learn more about our services below and contact us today!

Virtual Tax Preparation and Filing for Tax Day

Many Americans find filing their taxes to be challenging. It shouldn’t be with help from a qualified tax specialist. Now more than ever, filing your taxes virtually is the safest and easiest solution. In fact, Ash Dental CPA has over 20 years of experience preparing and filing taxes for dentists. Dental providers can utilize our virtual tax filing services to submit their documentation and file from home or office. 

Tax and Financial Planning

Tax obligations occur every year. That’s why it is essential to plan your taxes by taking advantage of tax-saving techniques. Depending on your financial situation and goals, our tax specialists can create a plan to minimize your tax liability. In addition, your tax planning appointment can be virtual! Simply book your appointment online here.

Financial planning is just as important. Our professionals will guide you through your estimated revenue and expenses for the upcoming year. We will also present the best plan of action to generate the most profit based on current market trends. Ultimately, your success is our goal!

Resolving Tax Issues for Dentists

Tax issues are common especially when many professionals attempt to file their taxes on their own. Luckily, Ash Dental CPA offers Tax Audit Representation. Regardless of your tax issue, contact us to learn how we can help resolve it. It’s always recommended to hire a licensed tax representative to protect your best interests. Learn more with a consultation as every tax solution varies by case.

Bookkeeping

The best way to make filing your taxes easy and stress-free is to hire a professional bookkeeper. This person is knowledgeable at properly maintaining your financial records. They also provide monthly generated reports to showcase your cashflow status, expenses, profit, revenue, etc. We also offer virtual bookkeeping for individuals and dental practices. By combining your bookkeeping with tax planning, filing taxes will be an easier task.

Get Started Today

Ash Dental CPA offers an array of accounting services to fit every dental professional’s needs. Request a complimentary consultation to learn how our services can be customized to fit your short and long term financial goals. As mentioned earlier, we have over 20 years of experience assisting dentists and their unique practices. Call  (508) 458-6789 or book online today. We look forward to assisting you!

ppp loan for dentists | dental chair

PPP Loan for Dentists | Paycheck Protection Program 

PPP Loan for Dentists

Dental practices have been affected due to COVID-19 health mandates. Only dental emergencies could be performed and until recently, regular dental procedures are now allowed. The health mandates are necessary to protect everyone and stop the spread of the virus. Unfortunately, these mandates result in operational changes that have affected revenue and employment. Many, if not all, offices have invested in plastic desk shields, PPE, and expensive sanitation equipment. 

Overall, dentists have reduced their staff, hours, and patient intake to stay operable and compliant with the “new normal”. In addition, some practices had to permanently close or are considering. That’s why applying for the Paycheck Protection Program (PPP) should be discussed with a qualified accountant. The PPP was created as part of the CARES Act to help keep business/practices afloat and maintain employment. 

If you have not applied for the PPP loan yet, the deadline is June 30th. And fortunately, the loan forgiveness terms have been changed to better suit many businesses and practices. Learn more below and contact Ash Dental CPA for a consultation.

Is the PPP Loan for Dentists?

The PPP loan is always referred to as a small business loan. However, dental practices can apply! It is important to review the terms of this loan with your dental accountant. In short, the PPP loan can be forgiven under specific circumstances. The latest terms are as follows.

  • Dental practices have up to 24 weeks to use the loan.
  • Only 60% is required for payroll expenses.
  • This allows for 40% to be used on practice-related expenses.
  • Employees must be rehired by December 31, 2020.
  • If loan repayment is required, you have up to 5 years to repay.
  • Those that qualify for loan forgiveness can defer payroll taxes.

Should I get the PPP Loan?

One would be quick to think that the PPP loan is necessary for their practice. In theory, financial assistance due to COVID-19 is helpful. However, it’s important to discuss your unique situation with a qualified accountant. Loan forgiveness is possible for this loan if the criteria are met. Therefore, financial planning and execution are essential. Likewise, if the use of funds does not meet the criteria for loan forgiveness, can you afford to pay it back?

Review Your Options

Find out if the PPP loan is right for your dental practice. Request a complimentary consultation with Ash Dental CPA. Our firm has over 20 years of experience assisting dental professionals and their practices. We offer an array of services that include financial and tax planning, accounting, bookkeeping, practice incorporation, tax audit representation, and more! Call (508) 458-6789 or click here to schedule online.

 

Resolve IRS and State Tax Issues for Your Dental Practice

As the country continues to work towards reopening, it’s important to address tax obligations as soon as possible. If you have not already done so, contact a CPA to learn the best ways to resolve pending tax issues. Reopening your practice is challenging enough. Rely on a skilled CPA to help resolve your IRS and State tax issues for your dental practice. Learn more below and schedule a virtual consultation with Ash Dental CPA today.

Resolving tax and IRS issues can be difficult and stressful. This is true for dental offices because any business can get taken off guard by financial difficulties. You would think businesses and medical practices would be the last to have an issue. The problem has a few factors causing it. One, the financial system they’re using isn’t sufficient or they’re so busy that the billing and taxes are backed up. Being busy is a good sign but you can lose the fruit of that labor to the taxman if you don’t straighten it all out. 

If you’ve already been served with a tax notice, read more below.

dental practice - resolve irs tax issues

Secure a Tax Accountant

The first thing you need to do if you don’t have one is to contact a tax accountant before responding to the state or IRS. Don’t leave it, do it immediately upon receipt. The tax accountant will review your tax records and plan your best approach.

Have an Understanding of What Happened and Why 

A good tax accountant will not only find the core reason for the issue and find the solutions but show you why the situation occurred. They’ll also make certain that it never happens again. 

Take Swift Action

Once your accountant determines what you owe or how to resolve the issue, take swift action. You can pay it all at once or negotiate a payment plan.  Most tax bills are wrong from the get-go. So this is why you need a professional to sort it out. They can clarify a lot of the confusion and straighten your tax records efficiently.

Besides, your patients need you! 

Swift action is needed before a tax assessment is placed on you. It’s hard, if not impossible to get it removed or changed after the fact.

Sometimes when you handle these things yourself, you can skip vital steps or not know where to look for the answers. After the IRS sends a tax notice is not the time for you to spend hours on the phone. Your tax accountant will know immediately how to determine if the tax bill is correct. 

Then, they have to petition the court and help you to pay what you actually owe with one caveat: 

They’ll be able to help you claim deductions to help lower your tax bill.

That’s right, even when you’re in trouble, you only owe what you owe and you’re still entitled to what you’re entitled to. Allow your accountant to uncover deductions that may reduce your tax obligation.

Learn More

Contact Ash Dental CPA to learn how to resolve your tax issues. Our firm has over 20 years and offers virtual accounting and bookkeeping. Call  (508) 458-6789 or click here to schedule online. We look forward to meeting you.

accountant | deductions and credits

What is the Difference Between Deductions and Credits?

Tax Deductions and Credits

Deductions and Credits

Now that we’re in a new year, you may have many things on your mind. If you’re a business owner, you may be concerned about taxes, as April 15 will be here before you know it. As you work on your taxes, you may see two terms pop up: deductions and credits.

Both decrease the amount of tax owed. However, they are not the same because they work to decrease your tax bill in different ways. There are some important differences between these two terms, and it’s important that you understand why they are different. They could help you in various ways come tax time, but you need to know how to best use them to your advantage and make sure you’re not missing out on a much-needed tax refund.

accountant | deductions and credits

What is a Credit?

A credit is often seen as better than a deduction because a credit directly affects the amount of tax you owe. For example, credits are available for married couples, those with children, those who adopt, those who go to school, etc. The list goes on. If you receive a $5,000 credit, then you owe $5,000 less on your tax bill. It’s as easy as that.

Some credits can be refundable. For example, if you owe $3,000 but then have a $5,000 credit, you can reduce your tax liability to zero, and then receive the refund balance, meaning you would be owed $2,000.

What is a Deduction?

A deduction is different from a credit in that it does not directly lower your tax liability. Instead, it decreases your taxable income. However, by taking deductions, you can put yourself in a lower tax bracket and therefore owe less in taxes, which is how a deduction can be similar to a credit. 

Unlike a credit, though, a deduction does not lower your liability by the full amount. If you have a $1,000 deduction, for example, and you’re in the 25% tax bracket, your liability will be reduced only by $250 rather than $1,000. 

Deductions lower your taxable income, but unlike some credits, they do not allow you to get money back. However, deductions are versatile in that there are many ways in which you can use deductions. You can deduct education expenses, daycare, medical expenses, mortgage interest, and charitable contributions. If you own a business, you can deduct many other expenses as well, such as office supplies, equipment purchases, payroll and communication expenses. However, if you don’t have many deductions, then it may be better to take advantage of the standard deduction given to taxpayers. 

Contact Ash Dental CPA

Tax law can be complicated. As a practice owner, your focus should be on increasing patients and revenue, not worrying about deductions and credits. Let the professionals at Ash Dental CPA take care of your tax woes. We can handle your taxes and accounting so you can focus on helping your dental practice grow. To learn more, call (508) 458-6789 or fill out the online form