4 Ways Dental Accountants Can Help Save Thousands of Dollars
Dentists are likely to incur thousands of dollars in expenses each year. From dental supplies to equipment, office supplies, and employee salaries, the costs associated with running a dental practice can add up quickly. Fortunately, dental accountants can help dental practitioners save thousands of dollars in various ways.
The role of a dental accountant is to help dentists manage their finances, from budgeting to filing taxes. Dental accountants understand the unique needs of the dental practice industry and can provide valuable advice on how to maximize savings.
Here are a couple of ways dental accountants can help dental practitioners save thousands of dollars:
1. Save on Taxes
When it comes to taxes, did you know there can be a major difference between purchasing a dentist’s chair and repairing one already owned? That’s true! The tax implications for buying versus repairing dental equipment, machinery, and cars can be markedly different, with the potential for up to a 13% savings or additional cost.
An experienced dental accountant can provide valuable guidance on selecting the best financial approach for purchasing dental supplies and materials. They can assist you in making the most tax-advantageous decisions while obtaining the necessary supplies to run your practice.
2. Differentiates Cash Flow and Profit
Many accountants lack a comprehensive understanding of cash flow forecasting, which can be detrimental to the finances of their clients. Cash flow is not merely based on the profits of a company, but it also takes into account future expenses such as taxes, creditors, and bad debts. Without factoring these elements into the equation, a business can quickly find itself in a tight financial situation.
An accountant who is knowledgeable and experienced can help you create a financial plan that won’t put your business at risk of running out of money. And, when you hire a dental accountant who knows the ins and outs of dental practices, this is exactly what you get.
3. Eliminates Work-Related Disruptions
An accountant offering services to a dental practice will need to review a lot of paperwork and data. This includes invoices, bills, receipts, and bank statements, among other things. It can be lengthy and laborious for dentists as they go through their documentation to find the necessary information. Unfortunately, generic accountants will be slow, as they won’t be 100% experienced at dealing with the finances of dental practices.
Dental accountants, on the other hand, are well-versed in the type of paperwork and data a dental practice requires, meaning they can quickly and accurately review it and provide the necessary advice. This eliminates any possible disruption to the dentist’s work and ensures that the practice can continue to run smoothly and cost-effectively.
4. Find Hidden Ways to Cut Expenses
If you want to stay on top of your business’s finances, you need to make sure you are accurately tracking your daily expenses. This means writing down exactly how much you’re spending each day so that you can identify areas where you can save money and make your business more profitable. Unfortunately, this can be challenging to do in the long run, especially when income and expenses records aren’t done often.
A savvy dental accountant can be a great asset in managing your dental practice. They can help you identify areas where you may be overspending on equipment or supplies and suggest ways to reduce costs while preserving the quality of your services.
Conclusion
Keeping your dental practice’s finances in check is essential for long-term success. By accurately tracking your daily expenses and working with a dental accountant, you can find ways you never thought before possible to cut down on unnecessary expenses. Doing so will help ensure that your dental practice remains financially healthy for many years. So, what are you waiting for? Reach out to a dental accountant today!
Ash Dental CPA offers professional accounting services for dental and healthcare professionals, helping them stay on top of their financial needs and focus on running their businesses successfully. If you need help with your taxes, get in touch with us today.