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CPA Financial Ash Dental CPA

Optimize Your Financial Accounting Practices

How to Protect Yourself from Occupational Fraud: Optimizing Your Financial Accounting Practices

Occupational Fraud. What is it, and how do you protect your practice from it? 

The definition, in short, is when your employees use their power for personal gain at the expense of your practice. This is something that employers don’t want to face. It means that the people entrusted with their company assets are against them. Distrust is a scary subject in the life of a dental practice owner. 

Pay Attention to Company Culture

No matter how small your practice may be, you will still have a company culture. Outlining that culture is your opportunity to highlight what you expect. You have a basis by which to hire your employees so you are recruiting a good fit. 

Delegate Separate Financial Tasks

Ensure that no one employee has sole ownership over a financial task. Several employees can be accountable for cash conversion cycles. There should be sign-off sheets. Signatures are more valuable than computerized e-signatures. The following shift can sign off on cash verifications and so on. Be as creative as the company and the law will allow. 

accounting

Replace Your Risky Way of Signing Financial Documents

Dental practice owners like to streamline payments and that is OK. What you need to consider most of all is the risk of forgery. Rubber stamps are outdated, and there’s a good reason. There is no way to compare a signature if it’s rubber-stamped. Then you have the time-consuming task of finding out who wielded the stamp. This is the most prominent opener to fraud. 

Likewise, the replacement for check signing is no better. Electronic signatures are not helpful. There really needs to be a person designated to sign checks. This avoids the need to analyze a computer screen looking for subtle clues in an e-signature. 

Hire A Dental  Accountant

Hiring a dental accountant is the best way to deter occupational fraud. If your employees understand that there’s an unbiased person with eyes on your practice. Fraudulent acts are prevented. Think about it. What does the dental accountant have to lose by blowing the whistle on fraudulent practices? What do you have to gain? Fraud prevention, of course. 

Audit Trail Software and IT Security

Audit trail software, are programs that detect activity outside the norm for your business. Additionally, there are measures that should be taken to ensure your business against cyber-sabotage from the inside and the outside. For example, make sure every system and device has the most up to date firewalls and antivirus software. 

Learn More with Our Accounting Services

In general, protecting your practice involves many techniques such as fraud prevention. Learn how to best protect your unique practice with a consultation. Ash Dental CPA has over 20 years of experience assisting dental practices of all sizes. We offer many services such as accounting, bookkeeping, practice incorporation, tax planning, tax preparation and filing, wealth management, and more. Moreover, new and existing clients should call (508) 458-6789 or request an appointment online. We look forward to meeting you soon.

accountant | deductions and credits
Business CPA Financial Ash Dental CPA

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. 

cpa preparing for a state audit
Business CPA Financial Ash Dental CPA

What Happens if My Practice is Audited by the State?

State Audit

State Audit | As the owner of a dental practice, you have a lot on your mind, especially this time of year, with taxes due soon. You may breathe a sigh of relief once you do your taxes and file them with the state and IRS. But that relief may turn to fear when you find out that you’re being audited. Nobody – whether they are an individual or a business – wants to go through a state audit. If an auditor finds that you intentionally lied on your tax return in order to pay less money, you could be fined and even put in jail.

The good news is that fewer than 2% of businesses get audited, so it’s not a common occurrence. If you do get chosen for a state audit, you can survive it as long as you are well-prepared. Your goal is to convince the IRS that your dental practice submitted accurate records and that you were in fact entitled to the deductions you took. It’s not an easy task, but here are some tips that can help with a state audit.

Survival Tips for a State Audit

If you have been chosen for a state audit, the first thing you should do is postpone it. Ask for more time to get records in order. This helps you get everything you need so you don’t have to rush around.

State Audit - Doctor preparing paperwork

Make sure you gather all relevant records. If you’re missing a receipt, you can reconstruct it.

Don’t say too much. Just answer the questions you are asked. Do not volunteer any more information than absolutely necessary for the state audit.

Do your research. If you’re unsure about a tax law, read up on it. If you’re still not sure, consult with a tax expert.

Know your rights. The auditor must treat you with respect. Discuss any unfair behavior with the auditor’s manager. If the auditor mentions tax fraud, consult with a tax professional or lawyer. 

What Can You Expect?

More than likely, you will have to pay some sort of penalty or fine. Don’t expect a state audit to go in your favor. There are three main outcomes. 

  1. The auditor verifies that all information is correct. This means that everything on your tax return was accurate. There will be no change and you won’t owe any additional taxes. This is rare, but it can happen.
  2. The auditor finds a mistake, and you agree. If you acknowledge the mistakes that the found, you might have to pay additional taxes, as well as penalties and interest.
  3. The auditor finds a mistake, and you disagree. If you disagree with the auditor’s findings, you can or sue the IRS in court.

Learn More

Nobody wants to hear that they are being audited. They may feel scared and embarrassed. If your practice is being audited, the professionals at Ash Dental CPA can help you pass with flying colors. We offer audit defense and other services so you can focus on what matters most to you – your dental practice. To learn more, call (508) 458-6789 or fill out the online form. 

dental team new dental office framingham ma
Business Financial Ash Dental CPA

Starting a New Dental Practice

New Dental Practice Framingham MA

Dental students and new dentists are often required to make a major decision when it comes to venturing in the practicing field. Most of them don’t know whether to start their own, work as associates, or even be employed by already practicing dentists. Making the decision is a huge challenge, and most students don’t know how to go about it. When it comes to making the decision, there are a few questions that students should ask themselves to take the right step.

How Do I Know If Practice Ownership Is Right For Me?

Being a practice owner, there are multiple benefits that come with the title. You get to decide the type of services and treatment you will offer as well as the office availability. You will be in charge of setting the practice vision and determine where you want to be in a few years to come. Also, you choose the type of staff you will work with and several other benefits. But before all these profits come to you, there are important questions that you must ask yourself:

  • Do you have the confidence to run a business?
  • Are you able and willing to take on debt to start a practice from scratch or buy an existing one?
  • Do you have what it takes to handle dental staff and their stress?

If you don’t feel as if you are ready personally or financially to take full control of your ship, joining an existing practice is not a crime. With a good dentist giving you cover, you are sure of finding a role model and mentor in the industry.

dental equipment of new dental practice framingham ma

What Is The Difference Between Being A Practice Owner And Being An Associate?

When you work as an associate, the stress that comes with ownership is first eliminated. This is because you will not have to deal with monthly bills, hiring or firing of staff, or even deal with marketing issues. Additionally, when you work as an associate, you will familiarize yourself with the dentistry practice and build your confidence.

Working as an associate also helps you increase your treatment speed and skills. This is because you will be required to meet specific targets in a day. Hence, feel the pressure to deliver even when you should refer to a specialist. 

On the other hand, as an owner of a dental practice, you get to decide which treatments to handle and how to work around referrals. 

What Are The Financial Considerations Of Purchasing A Practice?

By the time you graduate as a dental student, you may have student loans to pay. Therefore, purchasing or starting a practice may be a financial challenge. However, that should not limit your expectations and dreams of practice ownership. If your finances don’t allow you to open a practice, you can work as an associate, learn the dynamics of the industry as well as build your treatment platform. 

Being an associate will help you settle part of the student loan hence making it possible for you to run your practice smoothly. Additionally, when there is someone you look up to, it will be easy for you to gather essential tips. Therefore, you will be in a position to know what to do when you start your dental practice. As a dental practitioner, you will also enjoy the flexibility the career provides. You will also have a good network when you start your own practice.

Learn More About Starting a New Dental Practice

Find out if purchasing or creating a new practice is right for you. Call Ash Dental CPA at (508) 458-6789 to schedule a complimentary consultation. New clients are always welcome!

dental office dental consultant framingham ma
Business Financial Ash Dental CPA

What is a Dental Consultant?

Dental Consultant Framingham MA

Dental Consultant | Running a dental office can be challenging. It requires you to wear multiple professional hats to get the office running and operating smoothly. Apart from being the health care provider, mentor, and business manager, you will occasionally be pushed to handle manual office tasks. Managing all this by yourself can be overwhelming, and once in a while, there can be areas that will fail. 

That is why it is essential to consider seeking assistance from a dental consultant to ease your workflow, among other things. Learn more below and contact Ash Dental CPA today.

dental professional dental consultant framingham ma

What Is A Dental Consultant?

A dental consultant is a profession that incorporates various departments together, including a benefits consultant. According to the dental consultant association of America, a dental benefits consultant provides insight and information into your practice where it involves dental claim policies, insurance, utilization standards of care, and network management. Other benefits of having a consultant in your office are that they may help in other areas as human resource, setting up a specific program for patient care, and business optimization

 

How Can A Dental Consultant Benefit Your Practice?

Having another person bring in their perspective or opinion can help grow your business. Normally, when you don things by the book, there are higher chances of overlooking or missing out on essential points that someone else would notice. Additionally, a consultant brings in a different language that will make patients trust their operations in the office. For instance, when you want to cancel a particular appointment, the consultant will communicate in the language that the patient will believe it is okay to cancel.

Additionally, when you are committed to other engagements in the office, the consultant will perfectly handle other operations. The consultant can also offer advice where necessary to ensure that your office operations and practice are at par with the patient base growth. 

Since the consultant is an expert in leadership, finances, and business, they can work with your other office team players to ensure your office attains the following:

  • Define employee roles
  • Ensure your office complies with local and national regulations
  • Enhance communication between team players
  • Develop a system for hiring and managing staff
  • Enhance patient experience and scheduling

What Costs Are Involved?

Hiring a consultant will help create a smoother business flow. It’s not easy to state a fixed cost as each office has different challenges and solutions plan. 

Should You Hire A Consultant For Your Office?

Having a dental consultant on board can help you achieve your business goals faster. In other words, dentists go to school for dentistry, not business. And operating a practice requires a business plan, which is where the dental consultant steps in. 

Dentistry is among the most challenging professions in the health and wellness industry. There is a lot of competition and patients who are quick to change dentists for various reasons. Fortunately, when you hire a dental consultant, he/she will help you execute your business ideas and satisfy your patient base evenly.

Learn More

With the assistance of a dental consultant, your office will be more efficient and have productive care for patients. Learn more by scheduling a consultation with  Ash Dental CPA. We have over 20 years of experience. Call (508) 458-6789 to schedule a complimentary consultation.

Bookkeeping Framingham MA
Business CPA Financial Ash Dental CPA

Healthcare: Updating Your Bookkeeping

Bookkeeping Framingham MA

Tax season is never too far away. As a medical professional, it is important to update your bookkeeping to comply with IRS regulations. Although it is tempting to ignore, updating your bookkeeping ensures that you accurately file tax returns. Here are guidelines to help you clear your bookkeeping backlog.  Read more below and contact us today.

Step 1: Collect all receipts

Gather all invoices and receipts from your practice’s expenditure. The following are examples of receipts that you should keep.

  • Patient Invoices – check your patient accounts from the past year and ensure that all sales were recorded regardless of whether they paid in cash, on credit or otherwise. If sales are not recorded, the book will not balance, and this is a recipe for bookkeeping disaster.
  • Debt collections – are there any bad debt expenses? You should deduct the number of bad debts from the tax returns. In so doing, show the IRS steps that you took to recover the money. You normally deduct bad debts from the gross income of business when calculating your practice’s tax income. 
  • Business expenses- this refers to costs incurred in operating the enterprise. Examples are transportation, salaries, purchase of stock and utilities. Gather all receipts and double-check their correctness.
  • Vendor accounts – check the accounts of your suppliers of goods and services to verify that your business has paid them in full. If you do not have copies of bills, ask vendors to send you. 

Bookkeeping Framingham MA

Step 2: Reconcile all bank accounts

Check for any errors in the records of your business. Compare the transactions and balances there to confirm they tally with your business records. This ensures your bank statement balance matches the company records balances. 

It can be very costly when you hand over accounts to accountants when they are not fully reconciled. They will charge additional penalties if they have to straighten things out for you. 

Step 3: Separate business expenses from personal 

Keep personal expenses far away from business accounts because you may be held responsible for debts or losses that your business makes. You risk losing the liability protection on top of suffering stress when filing returns and when bookkeeping. 

Step 4: Go paperless

Digital receipts, statements, and records are more efficient than traditional paperwork. We do not recommend throwing out all traditional records. Instead, have digital copies that you can easily compute to make your work easier. The following digital tools can help you go paperless. 

  • Shoeboxed software scans and arranges business receipts and then generates expense reports.
  • FileThis mobile application allows you to upload photos of statements, receipts, and bills to store them online. 
  • ScanSnap Scanner can upload and store your scanned papers to Evernote 

Step 5: Gather W-9s, 1099s, and W-2s

You most likely will have to file several tax forms if you hired independent employees or contractors in the past tax year. The following are examples. 

  • Form 1099-MISC and Form W-9 for Independent Contractors – if you spent more than $600 in the fees of independent contractors, you must file and submit these forms. Form W-9 is a request to the contractor to provide his taxpayer information. When the contractor fills the form, you can prepare a Form 1099-MISC to file to the IRS. 
  • Form W-2 –This form must be filled for all your members of staff. 

Step 6: Let a tax professional look at your expenses

Perhaps the least expensive method of bookkeeping is doing all financial and accountancy work yourself. However, it is highly recommended that you invite an experienced CPA or tax expert. He should review all tax deductions, books, expenses, and other financials just before you file your taxes. 

Having an external reviewer gets rids of errors while ensuring that your business claims all deductions available. Additionally, a professional can speak to the IRS on your behalf. Learn more by scheduling a complimentary consultation with Ash Dental CPA. Call (508) 458-6789 to schedule a complimentary consultation.

professional woman smiling Dental Consultant Framingham MA
Business CPA Ash Dental CPA

Hiring a Dental Consultant

Dental Consultant Framingham MA

One thing that should be emphasized to new dentists is the need to invest in good and helpful advice right from the start. Oftentimes, new dentists struggle to operate their practice due to little to no information on running a business. In fact, many dentists rely on the advice of their friends and family, forgetting that friends and family do not have the right data when it comes to operating a clinical business.

Family and friends are hardly aware of the data behind operating a practice. They are also not aware of the financial stress the dentist may be experiencing. However, with a dental consultant, dentists can comfortably share financial data to learn how to improve their business challenges.

New Practice Key Tips

  • Create a financial report right from the start.
  • Treat and serve patients with the aim of making them lifelong patients.
  • Hire an experienced, caring staff that shares your vision.

professional reviewing data Dental Consultant Framingham MA

Creating a financial report right from the start

Let’s all face it. New doctors will mostly come out of their dental schools with loans. They end up adding up to the loans in the process of starting a business. Creating their business’s monthly budget and creating some goals towards debt reduction will help them jumpstart their business on a promising starting point.

A dental consultant will advise the new doctor on the financial needs of their business based on their financial level.

Aim at finding lifelong patients 

The best and most crucial skill of a doctor is to have excellent communication skills. The skills will see to it that their patients are well catered for and have them coming back to get their services. It is not all about performing the dentistry services on the teeth. It is also serving the person the teeth are attached to.

Key factors to ensuring that patients are happy and will become lifelong patients are;

  • A full diagnosis care
  • Communicating with the patient step by step until they are on board.
  • Giving a plan that fits the diagnosis and the patient’s budget.

Now, this is where the dental consultants come in. They help new and young dentists with communication and relational skills. The sooner the doctor hones these skills, the sooner they will start earning the trust of their patients. If patients are adequately cared for, they are very sure to keep coming back for the services.

Building your team

A good team will play a very crucial role in ensuring that a business is running well. A dental consultant will advise you on how you can relate well with your team and ensure that great results are met in the business.

A dental consultant will advise on the different techniques used to ensure the group of people in business are working together to meet the goals of the business.

It is important to note that dentists often make a mistake of not training their closest partners. The most crucial roles of a dentist include an assistant, an administrator and a hygienist. A dental consult will help the new doctor to train the personnel. This includes how to address patients and communicate recommended treatments. Also, your team will learn how to turn an inquiry into a solid appointment.

Learn More

No two dental offices are the same. That’s why hiring a dental consultant is essential to build a successful practice. Learn more by scheduling a consultation with Ash Dental CPA. We have over 25 years of experience and can develop a plan that works for your goals. Call (508) 458-6789 to schedule a complimentary consultation.

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Business CPA Financial Ash Dental CPA

The Difference Between Bookkeepers and Accountants

Healthcare Bookkeeper

Healthcare Bookkeeper | Are you a medical doctor who operates a private clinic? Do you want to hire a bookkeeper, an accountant, or both? It can be confusing to know the roles of each professional. However, we can help you understand by describing the different roles of these financial experts. 

A bookkeeper and an accountant’s roles have shared objectives. However, each person supports your business at different levels of the financial course. While bookkeepers are more administrative ad transactional, accountants turn bookkeeping data into logical descriptions of your business standing. 

As you look forward to hiring, understand the roles of bookkeepers as opposed to those of accountants. This way, you will know the functional differences between these two professionals. Eventually, this guide enlightens you as you hire. 

Functions of a Healthcare Bookkeeper

Your bookkeeper records daily business transactions consistently. Without this function, your business would not be successful. The following are elaborate functions of bookkeeping. 

  • Recording all financial transactions 
  • Posting credit and debit updates
  • Generating invoices for due payments 
  • Keeping and maintaining general ledgers, subsidiaries, and historical accounts 
  • Processing employees’ payroll

healthcare bookkeeper

Among the most crucial roles of bookkeeping is maintaining a general ledger. This is a basic statement where the experts keep the amounts of money as recorded in expense and sale receipts. The whole process is referred to as posting. Instead of traditional books, ledgers today are created using dedicated software on a computer spreadsheet. 

The size of your medical practice determines the complexity of your bookkeeping system. If you conduct numerous transactions daily, weekly, and monthly, chances are that you need a bookkeeper to ensure these are well updated. When you have to file returns to IRS, supporting bookkeeping documents will come in handy.

Functions of Accounting 

As compared to bookkeeping, accounting is a higher-level procedure that uses a bookkeeper’s information to produce financial models. An accountant is more subjective than transactional. The following are key accounting functions. 

  • Making adjustment entries – this refers to recording expenses that were left out in the bookkeeping level. 
  • Preparing the financial statement of your business
  • Analyzing how much operations of business cost
  • Preparing business income tax returns 
  • Helping you as the business owner to understand the impact of your financial decisions 

Accounting as a discipline comes up with reports from key financial indicators. You will better understand your business profitability, cash flow, the bigger picture of the business, and the path that the company is taking. 

Roles of the Bookkeeper vs Roles of the Accountant

Empower yourself by knowing what your bookkeeper and accountant do every day. As you hire these professionals for your medical practice, you may find a thin line between their roles. Therefore, we help you know the credentials that each should bring to the table. We break down the roles further as follows. 

The Bookkeeper 

Bookkeepers should have taken a 3 or 4-year associate’s degree. They have to be very accurate, knowledgeable and meticulous. Their supervisor is usually the business owner or an experienced accountant. 

The Accountant

To qualify as an accountant, one must have a bachelor’s degree in accounting. Similar degrees in finance and business administration could pass as adequate substitutes. Further, obtaining a Certified Public Accountant title is important. 

Summary

Bookkeeping Accounting 
Recording financial transactions Making adjustment entries
Posting credits and debits accounts Preparing financial statements
Updating invoices and sending for payment Compiling income tax returns
Maintain general ledgers and subsidiaries  Financial strategy and analysis
Completing payroll Tax analysis and strategy
Keeping records Forecasting financial occurrences

 

Learn More

You can learn to manage the financials of your business. It keeps you in touch with your fortunes. However, hiring a bookkeeper and an accountant can prove a prudent decision. Their input and wise counsel will help you concentrate on growing your company to the next level. Learn more by scheduling an appointment with Ash Dental CPA. Call (508) 458-6789 to schedule a complimentary consultation.

Medical Practice Accounting Framingham MA
Business CPA Financial Management Ash Dental CPA

Medical Practice Accounting: Hire a Professional

Medical Practice Accounting Framingham MA

As a medical practitioner, you may think you do not require the services of a medical practice accountant for your business. This is due to the common belief that most of the medical accountants are expensive. However, as a business, you need to keep track of all the income and expenses including billings, invoices, discounts, and future expenses.

What is Medical Practice Accounting?

Medical practice accounting takes care of all these. It keeps track of all the expenses and tries as much as possible to ensure there is minimal wastage of resources by preparing monthly and yearly budgets for the establishments. This will give the owner of the business a rough idea of the maximum amount of money to spend on expenses such as rent, insurance, advertising, salaries, and benefits, among other expenses.

Medical Practice Accounting Framingham MA

Secondly, medical practice accounting helps you to keep track of all your finances and can prevent employee fraud. Some accountants may try some underhand dealings to steal money from your establishment, but with the help of medical practice accounting, you can help prevent such occurrences.

Another reason for seeking the services of medical practice accountants is they are fast and accurate compared to other methods of accounting. Medical practice accounting will save you a lot of time that you can use to serve your clients better and increase your productivity. They are more accurate and comprehensive as they cover all aspects, including calculating your tax brackets for your business. It will also give you an idea of where all your expense falls into, and this will help you plan better. 

Benefits

Medical practice accounting will beneficial to your business in the following ways:

  1. It will address areas that need more efficient money management.
  2. Provides the correct figures that will aid in the filing of taxes.
  3. Help monitor and track the business performance, and finally,
  4. It will accurately identify and keep track of all the uncleared monies and debts.

Accounting will also help to separate your personal and business spending. By hiring a professional accountant, you will not be directly involved with the finances. A professional medical accountant will help come up with a budget for the business. The budget will guide you on the amounts to be spent by the business and what to spend it on. Furthermore, it will help maximize deductions when filing tax returns.

Additionally, medical practice accounting ensure that all your personal spending are accounted for. A professional accountant documents all your personal spending, such as donations to homeless people or charity organizations. Moreover, it helps you stick to your monthly budget and keep track of your spending each month. 

Documenting Records

For the business spending aspect, all the expenses get categorized into subgroups that are easy to keep track of. The medical practice accounting ensures that even the least of expenses such as photocopying and stamps get accounted for.

Accounting is not all about proper records, but it also helps to organize and store important business documents such as contracts, invoices, licenses, and receipts. They help maintain all relevant business documents that may be needed for future reference in an organized manner. The documents will also be categorized into different categories making it easy to retrieve them when needed. This will give your business a neat and orderly look and will open up spaces for the business that ordinarily would have been occupied by huge piles of papers and files.

Learn More

Any medical practitioner should consider medical practice accounting as their preferred choice of accounting in order to achieve maximum profits. Contact Ash Dental CPA to learn how our services will benefit your financial goals. We offer complete customized accounting services to best serve each client. Call (508) 458-6789 to schedule a complimentary consultation.

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Best Accounting Tips for Medical Practices

Best Accounting Framingham MA

Being a physician is not only about patient care, but it is also a profitable career. New medical professionals start with a small practice in hopes of growth within 5 years. Setting financial goals is important to help you succeed. However, reaching your goals requires financial guidance from a healthcare accounting firm, such as Ash Dental CPA. We offer an array of accounting solutions to help grow practices of different sizes and dynamics. Your success is important to us, so we compiled accounting tips to help. Read more below and contact us today.

Adoption of Accounting Software

In most cases, you may be enticed to use a spreadsheet as it is cheaper and easy to use but this is only a short term solution. This old fashioned method of accounting will be costly and cumbersome in the long run. It can significantly interfere with your ability to audit information and arrive at well-informed forecasts for the future.

Best Accounting Framingham MA

 The use of accounting software for medical practices is often overlooked, but it is significantly crucial. With the right  software, you will be able to:

  • Share information instantly with your accountant via the cloud
  • Perform simpler financial tasks
  • Learn about your profits and losses with accurate data
  • Complete easier tax returns

Accounting software will require an understanding of financial terms. Below are a few common ones.

Cash-Basis Accounting

In this method of accounting, receivables are accounted for when payments are received while expenses will be accounted for when payments have been made. Consequently, this is the best type of accounting solution for medical practices. With this method, the physician will receive their payments on a fixed schedule after all the expenses have been settled. However, the practice manager has to consider other expenses such as malpractice insurance, which are usually paid quarterly.

Accrual Accounting

Instead of accounting for expenses when they have been paid for, the practice will account for them as they incur. In other words, expenses are deducted from the revenue before the actual payment is processed. Some practices prefer this to assure the most accurate profit and loss data.

Schedule Profit And Loss Statements

Medical practitioners need to generate profit and loss statements. By doing so, they will be able to find out the financial health of their practice.  Other than just identifying disparities and validating daily records, profit and loss statements will give a better understanding into where money can be invested in the business.

Although it is highly overlooked, profit and loss statements can prove to be a valuable and powerful accounting tool in your practice.

Partner with the Best 

By partnering with the best professional accountants, you are assured the liability and burden that comes with the practice will be removed. This will enable you to fully focus on delivering quality services to your patients.

At Ash Dental, we offer workable, scalable and fully customized services that include tax preparation, bookkeeping, and accounting. Schedule a complimentary consultation today. Call (508) 458-6789 or book online. Additionally, you may visit us at 945 Concord Street #100A Framingham, MA 01701. We look forward to meeting you.

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(508) 458-6789

945 Concord Street #100A Framingham, MA 01701

info@ashdentalcpa.com

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