Why Should You Consider a Dental Tax Consultant?
Dental Tax Consultant
Dental Tax Consultant | When you are practicing as a specialized medical practitioner like a dentist, you would want to hire a specialist for taxes as well. You can hire any accountant or a seasonal tax preparer to file your business and individual tax returns. But the tax preparation job for a dental practitioner is a complicated one.
Hiring a dental tax consultant like a CPA has several advantages over a general tax preparer.
Why you shouldn’t choose a Generalist?
A general tax preparer comes with tax code expertise only. They lack in-depth knowledge of industry practice as they work for anyone anywhere. A generalist can only prepare your tax returns without analyzing the financial statement thoroughly.
If you have an accounting team and you just need someone to file your taxes, a general preparer would do the job. Again, that would be doing the same job twice. A specialist can provide in-depth financial advisory services that can help you improve business practices as well.
Role of a Dental Tax Consultant
A dental tax consultant will primarily be your financial advisor, not just a tax preparer. The primary job of a dental tax consultant would be to minimize your tax liability and staying compliant with tax regulations.
A skilled tax consultant like a dental CPA would offer financial advisory services that will reduce your tax liability in the long run. A dental CPA would consider the business consequences of every decision. For instance, a dental CPA would appraise your practice’s operational efficiency instead of expense adjustments merely.
A Dental Tax Consultant will be in a position to advise you on the best practices. For example, advising you on the buy v lease decisions for costly equipment.
Benefits of a Dental Tax Consultant
Hiring a dental tax consultant can bring you several advantages over a part-time tax preparer.
- You can focus on the core business activity by appointing a specialist to do the taxes.
- You can consult the dental CPA for the best business practices.
- Can offer better insights on financial decisions such as a buy v lease for equipment and facilities.
- Helps you in benchmarking business practices against industry standards.
- Provides financial analysis to improve the profitability and optimize the tax liability in the long run.
The list can go on for a specialist’s expertise and experience cannot be matched by a generalist in any field.
Dental Consultants Are Tax Experts
Tax filing cannot be a one-time task that must be performed before April 15 every year. Tax regulations change frequently and at a rapid pace. As a dentist, you would find it hard enough to fully grasp the tax regulatory changes.
Dental Consultants are experts in tax code. They stay abreast of the tax law changes. Moreover, they can implement the changes to keep your practice fully compliant. For instance, the current tax year has seen several temporary provisions for taxpayers such as the PPP loan forgiveness, charity donations, retirement contribution withdrawals, and so on.
Dental Tax Consultants Can Maximize your Tax Savings
Maximizing tax savings is the primary objective of any dental consultant. That’s the reason you pay them. Only a dental tax consultant can do that by staying legally compliant.
An experienced dental CPA can bring benefits of filing perfectly matched estimated taxes, reducing the tax burden, and maximizing deductions wherever possible. It’s important to consider that you need to stay within the regulatory boundaries when choosing any tax deduction or tax credit. A red flag can land you in an IRS audit and you may end up paying more in penalties than you would have paid to a specialist tax consultant.
Dental Tax Consultants beyond Tax Savings
A dental CPA can be your financial advisor. It means you can save more than tax credits and deductions. For instance, if your dental practice has been incorporated as an S corporation, you should pay special attention to individual tax returns. Similarly, you must carefully choose between a sole proprietorship and an LLC.
An expert can advise you on these sophisticated decisions that have long-term implications for your business. Choosing the right tax consultant is important. You wouldn’t want to jeopardize all the hard work you have put into building the brand name.