What is the Role of a Dental Financial Advisor?

dental financial advisor

Dental Financial Advisor

Dental Financial Advisor | Challenging economic times make financial planning harder. Uncertainty surrounds us for the time being. As for financial planning, the future can be uncertain and unpredictable as recessions are inevitable.

As a dental practice owner, you can work with a specialist to plan well. Financial advisors come with different industry expertise and experience. Choosing the right dental financial advisor to work with can make the process a lot easier for you.

Dental Financial Advisors

A dental financial advisor has the qualifications of financial advisory and experience in the dental industry. In other words, they are dental industry specialists.

Hence, you need financial advice from an expert at every stage of your dental practice career. From choosing the right entity structure to tax planning and retirement, you’ll need professional advice.

Overall, there is no better option than to consult an industry specialist. Thus, a generalist financial advisor can just do the job, a specialist will do it perfectly.

Financial Planning with a Dental Financial Advisor

In short, a dental financial advisor will make the financial planning a thorough process. It takes careful planning and expertise to devise an effective financial plan.

For this reason, you can expect the knowledgeable financial advisor to begin the process by asking questions. The advisor must fully understand your current financial scenario and goals for effective planning.

Here are a few key services that you can expect from a dental financial advisor.

Dental-Specific Financial Advice

Generalist financial advisors would take the generic route of financial planning.  In addition, a dental financial advisor will take a customized route that matches your requirements.

Financial planning is unique for every individual and business. Understanding the financial goals and prospects is the key to successful financial planning.

A financial advisor that comes with an understanding of the dental industry can offer tailor-made financial advice. You can choose the right entity type, tax planning, cash flow management, debt planning, and practice succession with the help of a dental financial advisor.

Debt Management

Debt is the major source of financing for any dental practice. Unfortunately, debt is also the major cause of concern for many practices. It doesn’t have to be that way if you plan well.

A dental financial advisor can help you in assessing the existing debt plans. You can work with the advisor to create an effective debt management plan.

Overall, debt management includes choosing the right financing options, reserving cash, building a credit score, and increasing net worth.

Tax Planning

Tax planning for your personal and corporate income is of utmost importance. Thus, many advisors can give you a short-term plan for tax planning that may result in tax evasion.

Effective tax planning requires a thorough understanding of your practice income and expenses. For this reason, it includes careful assessment of your entity structure too.

Also, you can use effective tax planning tools like entity structure, charity donations, interest deductions, tax credits, and deductions.

A Specialist Investment Advisor

Investment planning is critical for net wealth building. It also helps in achieving retirement goals. You should explore long-term financial goals through capital gains with investment plans.

Capital gains incur tax implications too. Hence, it is important to evaluate different options and secure the most tax-efficient investments.

A dental financial advisor can work with you to devise an effective investment plan. Some key points to consider here include your risk tolerance, existing portfolio, business liquidity, cash flow, and taxation.

Advice on Insurance Plans

You’ll always require different insurance plans for your personal and practice protection. For example, some insurance plans are required by law.

A thorough review of your existing insurance plans and exploring other competitive options can help you secure better plans. Also, you can explore a variety of insurance plans for life insurance, general building liability, employee liability insurance, practice and personal disability, and malpractice insurance to name a few.

Practice Succession, Retirement and Estate Planning

At some stage, you’ll need practice succession when you retire. Naturally, you would want to align your retirement goals with the practice succession planning. In other words, estate and personal wealth planning are closely linked with retirement planning as well.

Hence, a key advantage of working with a dental financial advisor will be to obtain expert advice on retirement planning and practice succession in conjunction.

Learn More

Contact Ash Dental CPA to learn more about financial planning. Call (508) 458-6789 or request a call online.