dental accounting services professional

Why Dental Accounting Services Is Necessary For Your Dental Practice

Dental Accounting Services

Dental Accounting Services | Accounting records form the basis of a strong business. You can hire a permanent accountant or outsource the tasks to someone with a specialty in handling accounting services. Many businesses opt for outsourcing accounting and bookkeeping records these days.

Some businesses like dental practice may require an accountant with in-depth industry knowledge. A dental CPA would be an ideal option for your accounting and taxation services.

Here are a few key benefits of using dental accounting services for your dentistry practice.

You’ll Get Organized Accounting Records

Keeping the accounting records in order will set the tone for your finance function. A specialist accounting service will help you maintain accurate accounting records. In turn, you’ll be able to create financial analysis to make informed decisions. It will also help you manage tax liability for your dental practice.

A dental accounting service can best advise you on tax deductions, exemptions, and credits. It can only be made possible by creating a comprehensive accounting function for your dental practice.

You Get Fair Financial Consultation

You cannot tell yourself where things have gone wrong. Similarly, an in-house accountant cannot objectively inform you of accounting mistakes. No matter how hard you try, you wouldn’t remain objective if you do it by yourself too.

A prime advantage of outsourced accounting services to a specialist is the fair reflection of your accounting function. A professional accountant will advise you on what is the best solution for your dental practice, rather than saying what you want to hear.

Avoiding Conflict of Interest

If you have sufficient time and want to manage the accounting function by yourself, you’ll be biased towards yourself. Even in a partnership, a conflict of interest arises if one of any partners manages the accounting function.

A professional accountant such as a dental CPA can help you avoid any conflicts of interest. A professional accounting service will objectively provide you financial services by avoiding any conflicts.

As a sole proprietor, you’ll often find yourself in a difficult position to decide between the best outcome for your business practice or yourself. Such conflict of interest is unavoidable in corporations and partnerships too. Using a professional accounting service can eliminate such conflicts and biases to bolster the confidence of business owners.

You can Lower the Costs with Dental Accounting Services

Partnering with a dental accounting service can certainly lower the costs as compared to hiring a full-time accountant. The salary and employment benefits of a full-time employee can easily outweigh the charges of an outsourced accounting function.

Apart from hiring costs, a professional can save you on business costs as well. A specialist can bring benefits of savings through important financial decisions such as an equipment buy v lease decision. Tax deductions, credits, and exemptions done properly are other added savings that can come through a specialist accountant.

Specialist Knowledge with Industry Expertise

An industry-specialist accountant such as a dental CPA can bring the added advantage of industry practices. A dental CPA can help you in setting up an accounting function as well as offering advisory services.

For instance, if you wish to buy or sell an existing dental practice business. Perhaps, you need advice on industry benchmarking practices. Some professions need to comply with standard business practices as well. Moreover, an industry-specialist accountant can offer valuable services through expertise and experience in a specific industry.

Comprehensive Reporting and Analysis

You can do the accounting entries or tax filing as you go. Likewise, you can be just fine by doing it as a routine task. However, a specialist can bring added benefits through useful insights into financial reports.

For example, you can get detailed reports on serving particular demography of patients. You can extract valuable reports from the clients’ database. It can also help you manage your credits and accounts receivables efficiently. The list can go on.

Tax Planning and Preparation

Tax planning is an ongoing process that continues year-long. If you have set up a professional accounting function, you have done half the job right. For this reason, accurate accounting records make the job easier for your tax planning and preparations.

Furthermore, Dental Accounting Services enable you to timely proceed with the quarterly tax filing. It will also help you manage the cash flow for tax filing by year-end. You can then maximize the tax savings through comprehensive financial analysis.

Learn more with  Ash Dental CPA. Call (508) 458-6789 or request an appointment online.

dental tax filing massachusetts | dentist

Dental Tax Filing Massachusetts: How to File your Dental Office’s Taxes

Dental Tax Filing Massachusetts

Dental Tax Filing Massachusetts | Your dental office may have a hectic routine but you need to file taxes accurately to stay compliant with regulatory authorities. You could outsource the task to a specialist like a dental CPA or you can do it by yourself. Either way, you’ll need to plan ahead of time to manage tax filing in a timely and organized manner.

Here is our quick guide for you to prepare your Dental Tax Filing Massachusetts.

Plan Ahead of the Deadlines

Your dental practice may need to file quarterly estimated taxes. You’ll need to file for annual tax returns before April 15 every year. For this reason, you must do is to plan ahead of these deadlines.

Organize your accounting records and reconcile bank statements to file the tax returns accurately. Discuss important tax regulatory changes that can affect your returns. For instance, the current year has seen several tax provisions for PPP loan forgiveness, EIDL, retirement plans, and so on due to the coronavirus pandemic relief package.

Tax Planning should begin at the beginning of a tax year. It is different from tax preparation. Consult your tax advisor on the best possible scenarios to maximize tax savings without compromising on regulatory requirements.

Know your Tax Codes

The first thing to know is the right entity type of your dental practice. Your tax liability will differ as a sole proprietor than in an LLC or S Corporation.

An important factor in tax filing is knowing the tax brackets. Decide whether you’ll file tax returns as an individual separately or through a sole proprietorship. It will also affect your tax deductions.

Keep the Record Books Straight

In short, accounting records form the basis of any finance function. Accuracy of accounting and financial records means accurate tax filing. For this reason, prepare your accounting books in an organized manner. Remember, you can only claim tax-deductible expenses if you have proof. Likewise, keep the expense receipts to claim tax deductions.

Prepare your financial statements and reconcile them with bank statements. Also, you need to organize the payroll records and payroll taxes. Moreover, insurance and retirement plans are also important contributors to your accounting records.

You can organize accounting records by hiring a professional accountant. For example, organized and timely prepared accounting data means accurately filed tax returns. Furthermore, investing in record-keeping will pay dividends all year long and especially at the time of tax filing for your business.

For example, here is a brief list of accounting records that are essential when Dental Tax Filing Massachusetts

  • Receipts from Patients (Revenue)
  • Records of funding – by owners or creditors
  • Records of all sales and Fee charged to patients
  • Expense agreements such as rental, lease, or freight
  • Building rental agreement
  • Copies of bank statement
  • Records of miscellaneous income and expense

Maximizing Tax Deductions and Exemptions

Every business wants to maximize tax savings. However, not every business can do that effectively though. For this reason, you need to stay compliant with tax regulations when it comes to expense deductions and tax exemptions.

Here are a few important expense categories to keep in mind when Dental Tax Filing Massachusetts

  • Cost of goods for products and services
    • Dentures, Filling Materials, wires, and fillers.
    • Vaccinators
    • Dressings, masks, mouthwashes, protective gears.
    • Any other Products purchased for direct servicing of patients
  • Staff salaries and wages including doctors and owners (depending on entity structure).
  • Building rent, Mortgage Interest, and Maintenance Costs
  • Insurance Costs for the office building
  • Utilities and Bills
  • Equipment and tools for practice
  • Maintenance equipment for building and offices
  • Bank loans, interest on credit cards, and other financing costs
  • Marketing and promotion expenses
  • Accounting, legal, and tax services fees
  • Educational and training expenses
  • Miscellaneous expenses related to dental practice

There can’t be an exhaustive list of allowed expenses for tax claims. For example, any expense that relates to your dental practice can be used as a tax-deductible expense.

Prepare Tax Returns and Claim Credits

Claiming tax exemptions and credits can be a complex task. In addition, many practitioners do not claim allowed credits, some others overdo it and incur penalties from the IRS.

Moreover, here are a few broader categories of tax credits and exemptions to maximize your tax savings.

  • Earned Income Tax Deduction
  • Child Tax Credit
  • Vehicle Deductions and Standard Mileage
  • Child and Dependent Care Credit
  • Meals and Entertainments – Business purpose only
  • Travel and Business meals deductions
  • Retirement Plan Contributions
  • Charitable Donations
  • Hiring Family members
  • Spouse Salary and Practice at Home Deductions
  • Research and Education

Apart from these regular deductions and credits, you can also claim currently allowed Coronavirus relief deductions. For instance, sick and family leave credits, increased limits for charitable donations, and PPP loan forgiveness, etc.

Learn more with Ash Dental CPA. Call (508) 458-6789 or request an appointment online.

dental incorporation framingham | dental office

Dental Incorporation Framingham: Different Types Of Dental Incorporations

Dental Incorporation Framingham

Dental Incorporation Framingham | As a dental practitioner, you’ll need to incorporate your business as a legal entity. Whether you are entering into the business for the first time or thinking of restructuring an existing one, you should carefully choose the right option.

There are several choices for you to incorporate a business entity. Each type comes with different business and tax advantages and limitations. Choosing the entity type can directly impact your personal liability towards the business. You can protect your personal assets by choosing the right entity type.

Let’s discuss a few commonly used entity structures for dental incorporation Framingham.

Sole Proprietorship

It is the simplest of the entity types in the dental practice incorporations. The pitfall of it is to assume full liability of debt, taxation, and any other liabilities of the business as well.

A dental practice registered as a sole proprietorship is treated like self-employment. You do not file for tax returns separately. It means all of your business income is treated as personal income. However, the structure is easier to maintain for business administrative purposes.

Limited Liability Company – LLC

A limited liability company structure protects your personal assets and wealth from business obligations. Your business is treated as a separate legal entity in an LLC formation. It is a simpler incorporation structure for a dental practice than a corporation or other forms.

An LLC can use a different number of owners with limited liability towards business. However, the personal liability of each owner or partner remains the same as in any other legal structure. For this reason, it is best to seek professional guidance when considering dental incorporation Framingham.

Partnerships

The structure limits the legal liability of each partner with a defined stake. In addition, it provides legal protection to each partner.

It can be a useful simple structure for a dental practice. Also, partnerships allow for the allocation of business assets, income, and tax liability in a defined proportion for all partners. However, a general partner can be assumed with an unlimited general liability of the business.

Professional Limited Liability Company – PLLC

Professional practitioners like dentists can opt to form a professional limited liability company (PLLC). It will give you all the legal rights attached to an LLC. Additionally, it protects you from several administrative liabilities.

For taxation purposes, your business income is treated as a sole proprietor. It means there is no capping on your self-employment income with this structure. Hence it will incur higher tax liabilities for you.

Professional Association – PA

The option to form a professional association for dental practitioners may not be available in all states. However, some professionals like dentists can join hands to register as a professional association.

A Professional Association can protect your personal assets as well as several litigation issues. You can get benefits of tax savings through different tax election choices as well with a professional association structure.

Professional Corporation – PC

A professional corporation is an extension of the corporation structure available for professional practitioners such as dentists. It secures your personal liability and provides several tax advantages.

As you report your income as salary received in a professional corporation. Hence it can lower your personal tax liability. On the other hand, the formation of a professional corporation requires several formalities and complex paperwork. It also requires rigorous tax compliance and independent auditing of the corporation.

PLLC with S Corporation

A professional limited liability company with an S Corporation structure combines the benefits of an LLC and an S Corporation.

As a dental practice, you can save on taxes through an S corporation election in this form. Also, you can lower the legal and administrative costs by incorporating them into a PLLC. Likewise, this structure avoids the complications of double taxation.

As a dental practice, you can choose one of the several entity structures available. Each entity type offers different taxation and administrative benefits. Furthermore, you can consult a professional CPA advisor to help you choose the right entity type for your dental practice.

Learn more about Dental Incorporation Framingham with Ash Dental CPA. Call (508) 458-6789 or request an appointment online. New clients are welcome. We’ll see you soon.

dental tax consultant | clock

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.

Learn more with Ash Dental CPA. Call (508) 458-6789 or request an appointment online.

tax specialist with reports

Tax Specialist: Choosing a Tax Specialist for your Dental Practice

Tax Specialist

Choosing a tax specialist can be a cumbersome job if you don’t explore the options correctly. You may do a quick online search and see an abundance of so-called tax preparers. You must dig deeper and settle for the best tax preparation services.

First thing, decide on whether you need a tax specialist or not? If you’re running a dental practice, it is a good idea to hire a specialist.

How do you choose the right tax specialist? What are the key questions you should ask the tax specialist before you enter into a partnership?

Here are a few key points to help you through the process of choosing the right tax specialist for your dental practice.

Compare your Options

You may find it satisfying to work with a CPA offering online services. Perhaps you consider face-to-face interactions with your advisor more helpful. Always explore different options before you sign a partnership with your tax advisor.

Compare the fee structure, range of services, expertise, industry experience, and availability of your marked service providers. Shortlist a few CPAs and EAs, and talk to them before you finalize one.

Choose a Tax Specialist – CPA with Dental Practice Specialization

While shortlisting the CPAs and EAs, consider some important factors to choose the right one for your dental practice. A key point to consider is dental practice specialization. Choosing a dental CPA or an EA with significant experience in Dental Practices will help you a great deal.

A dental CPA will not only file for your tax returns, but he/she can be your business advisor as well. Each industry demands certain skills. A CPA with in-depth knowledge of dental practice can add great value to your advisory services.

Competence and Experience

Do not just settle for the reputation of the CPA firm. Ask for the credentials and professional qualifications as well. If you had chosen to work with a CPA, ask for the dental practice specialization.

Experience plays an important role in selecting the right CPA. If your dental CPA is fresh and lacks experience, it must be compensated with other factors such as fees and packages. CPAs complete the work experience requirements to earn the qualification. A young CPA will be more familiar with the work ethics than a non-qualified tax preparer.

Range of Services on Offer

Running a dental practice is a daunting task in itself. If you’re planning to outsource the tax filing, you must consider bundling it with other services. CPAs and tax preparers offer a different range of services.

You may consider outsourcing the following services for your dental practice as well:

  • Accounting and Bookkeeping Services.
  • Dental Payroll services.
  • Corporate and Personal tax filing.
  • Capital Structure planning.
  • Equipment leasing planning.
  • Business Valuations – buying or selling a dental practice.

It will be a wise option to seek help from a dental CPA. It will create consistency and effectiveness in your tax and business planning overall.

Tax Planning and Advisory

When you choose between a general tax preparer, doing it yourself, or a specialist like a dental CPA, you consider many factors. A key advantage of partnering with a dental CPA is to seek business planning and advisory. Choose a Dental CPA that offers more than just tax preparation.

Choosing a CPA over a generalist can prove to be a substantial difference. A dental CPA can help you formulate effective strategies on business tax planning, employer contribution plans, lease v buy decisions, financing, retirement planning, and investments. It can prove beneficial when you are working with the same partner. It will create harmony and synchronization in overall business strategizing. 

Communication and Responsiveness

Although you’re outsourcing tax preparations, you’ll need quick responses from your CPA quite often. A clear sign of a professional CPA is to choose the one with effective communication skills.

Make sure to check with your potential partners for availability after the tax season too. You’ll need to follow-up on the refunds and may get an IRS audit query as well. A professional CPA will oblige your queries with effective communication and responsiveness.

Fee Structure

Compare the fee structure of the CPAs objectively. The highest cost always does not mean the best. CPAs come with different fee structures, some charge on an hourly basis, others on a lump sum.

Make sure you are clear on the fee structure before you sign the contract. A dental CPA can offer you a customized package offer depending on your business needs and services rendered.

Learn more with Ash Dental CPA. Call (508) 458-6789 or request an appointment online.

dental practice taxes

Dental Practice Taxes: How to Prepare for your Dental Practice Tax Returns

Dental Practice Taxes 

Dental Practice Taxes | Millions of taxpayers file their taxes through professional and paid tax specialists. Outsourcing tax returns to a specialist is a time-saving and cost-effective choice. Your tax specialist will need important information to prepare your tax returns.

If you’re running a dental practice and file taxes through a specialist, you should pre-plan the strategy. It can save time and money for your dental practice.

Let us guide you through the key points for a smooth tax filing process for your dental practice.

Choose a Tax Specialist – Dental CPA

You can submit the tax returns by yourself or with the help of any tax preparer. If you own dental practice, consider filing taxes through a Dental CPA. Filing tax returns require strategic planning that aligns with your business objectives.

A dental CPA can understand your business requirements and objectives clearly. a dental CPA can help you plan an aggressive tax strategy to minimize the tax liability. You’ll also benefit from the industry experience of a dental CPA for business process benchmarking, profit maximization, equipment leasing, financing, and planning techniques for a dental practice.

In short, if you run a dental practice, go for a dental CPA over a generalist.

Determine the Federal and State Tax Obligations

Talk to your dental CPA as soon as possible. If you own a running business, you’ll need to evaluate the effectiveness of your tax strategy as well. If you’ve just started or relocated into a new state, determine the obligations first.

Consult your tax specialist to identify your State and Federal Tax obligations. Your entity structure, State regulations, tax calendar, and local regulations will determine the business taxes.

In general, a dental practice or any other business needs to file the following taxes:

  • Corporate Income Tax
  • Estimated Taxes
  • Employer Taxes
  • Excise Tax
  • Self-employment tax (if applicable)

Plan the Tax Strategy NOT Tax Reductions

A general tax preparer will focus on reducing the tax liability only. Instead, plan an effective tax strategy that aligns with your dental practice objectives. This is where the specialization and understanding of the industry knowledge of your dental CPA will come in handy.

Organize the Documents – Tax forms and business documents

Your tax filing deadline can be March 15 or April 15 depending on the entity structure. You must gather key tax forms for your business and personal tax filing in time.

Here are a few key tax forms for your business:

  • 1040 or 1040-SR Schedule C – Income tax
  • 1040 Schedule SE – Self Employment tax if applicable
  • Form 1040 ES – Estimated taxes
  • 941 – Employer’s Quarterly Tax returns
  • 1099-Misc. For other income reporting.

Along with tax forms, keep the key business documents in order too. You’ll need the business tax ID, article of incorporation, partnership agreements, etc.

Gather Receipts for Your Dental Practice Taxes

Take full advantage of the tax breaks and tax credit available. For example, the employee retention credit and Paid sick leave tax credits have been extended till June 30 and March 31 2021 respectively.

Organize your accounting records in time. Gather all the important financial statements including the balance sheet, Income Statement, cash flow statement, and statement of changes in equity.

You’ll need to collect the bank statements and credit card reports as well. It will help you prepare the final tax filing correctly. It will also make the job easier for your dental CPA. Collect the important expenses receipts, income receipts, sales records, cost of goods sold, services, utilities, invoices, and other necessary financial records.

Keep the Tax regulatory Changes in Mind

Consult your tax advisor on the regulatory changes regarding tax laws. You should take full advantage of the tax credits available and be mindful of the implications of non-compliance. For example, the TCJA 2017 had many advantages and limitations for corporate tax filers at the same time. Some tax credits like family sick leave tax credit have been extended.

Prepare and File the Taxes in-time

You’ll need to file the estimated taxes on a monthly and quarterly basis. It’s wise not to wait till the last moment for the year-end time for other tax obligations too. 

Follow up and Refunds

Moreover, a professional like a dental CPA will be at your back even after the tax season. You may get a clarification notice or even an audit mail from the IRS. Your tax refunds may get delayed for some reason from the IRS too. Therefore, stay in touch with your dental CPA and follow-up effectively. In other words, reviewing the tax strategy will help you devise a better for the next tax year.

Contact Ash Dental CPA to learn more about dental practice taxes. Call (508) 458-6789or request an appointment online. New clients are welcome.

financial services accounting

How Professional Financial Services Accounting Benefits Your Dental Practice

Financial Services Accounting

Financial Services Accounting | Professional financial and accounting service firms offer a wide range of services. General accounting firms cater to every business. Their focus remains on accounting accuracy and tax compliance only. An industry specialist like a dental accounting firm can provide tailor-made accounting services for your dental practice.

Outsourcing accounting and taxation services offer many business advantages. These benefits can be enhanced by partnering with specialized service providers.

What to Expect From Financial Accounting Services for Dental Services

You are partnering with a dental CPA and accounting firm. As a valued client you can expect them to provide the best services that yield results. Dental CPAs possess industry knowledge of dentistry, the services and results must reflect that knowledge too.

The benefits will include acquiring professional services as well as industry benchmarking. You will get the dental-specific benchmarking information to devise an effective tax strategy and accounting practices that minimize your tax liability.

Financial Services Accounting Offer

Expect the standard accounting and financial services from a dental CPA firm. These services must include taxation, auditing, and assurance as well.

We will offer accounting and financial services for your dental practice including:

  • Accounting and bookkeeping services
  • Tax preparation and tax filing
  • Cash flow management consultancy
  • Advice on equipment financing
  • Tax compliance
  • Auditing and assurance
  • Payroll services
  • Financial planning and budgeting

Benchmarking with industry standards is an effective way of improving business efficiency. Dental practices are no exception to this rule. Industry benchmarking requires specific analytical skills and valuable data to formulate effective strategies. Dental accounting services can provide you the sound foundation of a successful financial plan. You can then work with us to elaborate on business areas of improvement.

Benefits for Your Dental Practice

Accounting function plays a pivotal role in financial planning for any business. Accounting methods, depreciation methods, and choice of debt structures also play important roles in formulating an effective financial plan. The benefits of partnering with professional accounting services are manifold. These advantages stretch beyond cost-effectiveness and time savings.

Improved Dental Services Efficiency

Outsourcing accounting functions to an industry specialist will ease up the workload from your management. Analyses and interpretation of accounting records will provide you with valuable information on cost drivers.

Professional accounting services that specialize in dental practices can identify the cost drivers that can be minimized. Timely and accurate financial reporting can save your management’s valuable time. Reducing the paperwork will speed up the accounting record processing too.

Improved Billing and Accounts Receivables

Accounting services are of no avail unless they can provide useful insights on business operations. One of the key areas for dental services to improve remains with billing and accounts receivables. As private practitioners, it remains of utmost importance to reduce the accounts receivable cycles. That improves the cash cycle and smoothens the operational efficiency.

Professional accounting services will offer valuable accounting reports to analyze billing and receivables functions. Improved collections will impact your tax liabilities as well. Avoid problems such as delayed estimated tax payments and payroll payments.

Dental Practices Industry Benchmarking

Access to industry benchmarking standards is perhaps the most important advantage that automation cannot offer. You wouldn’t have access to a wide range of data set to do it by yourself as well. A professional accounting service will provide you with industry benchmarks with integrity.

Cost-Effectiveness

Combine the benefits of accounting, taxation, and business consultancy services from an industry specialist CPA firm. The accounting and taxation services alone will outweigh the costs of outsourcing in the long term. The valuable business insights and compliance will realize the cost-benefits manifolds.

Focus On Growth

You cannot focus on dental practices and business growth unless you enjoy peace of mind with financials. A general CPA firm serving any industry cannot provide business consultation in dental practices. We believe you should focus on the core business activity and provide unmatched services to the clients.

The professional accounting services will improve your staff efficiency by reducing the workload. Improved collections, cost reductions, operational efficiency, and compliance with taxation will become the pillars of your growing dental practice.

The overwhelming dental practice routine demands focus and energy for providing the best services to the clients. We aim to help you in achieving that goal.

Tax Management in Dental Practices

Minimizing tax liability and maximizing tax savings remains a challenging task for all businesses. Accounting and financial records set the basis for taxation management. Tax management includes tax planning, filing, and representation of your dental practice. A professional accounting service will lead you through the complexities of tax management in dental practices. The key to success here will also be our in-depth industry knowledge. We will ensure to minimize the tax liability without a compromise on tax compliance.

 

Contact Ash Dental CPA for a complimentary consultation. New clients are welcome. Call (508) 458-6789.

tax advisor for dentists

Why You Should Consult With a Tax Advisor That Specializes in Dental Practices

Tax Advisor for Dentists

Tax Advisor for Dentists | In short, from business structure to tax filing, and from accounting to operational costs, you’ll need advice from a tax specialist. General tax advisors are competent enough to advise you on reducing the tax liability. Their focus will be on cost reductions. A tax advisor that specializes in dental practices will offer a tailor-made tax plan for your business.

Tax advisors for dentists know the dentistry practices inside out. Accelerated industry trends like telemedicine and remote working have affected the industry practice. In a dynamically changing business environment, you should consult with a tax advisor that understands the challenges of the industry.

Industry knowledge with Tax Proficiency

You will certainly prefer talking to a tax advisor that inherently understands the dental practices. Each industry has certain tax regulations that pass on different tax treatments. The service sector in general, and dental practices particularly, offer labor-intensive costs. The revenue streams from a dental practice are different from a commercial business. Partnering with a tax advisor for a dentist will bring the added advantage of embedded understanding for dental practices.

A tax advisor for dentists will offer a forward-looking tax plan that will focus on service offerings and customer experience. You’ll strategize the business revenue model through customer focus and operational efficiency. A competitive yet profitable service charge model that can maximize profitability.

Industry leaders in healthcare and dentistry are reforming their business models. The changing business environment has compelled every business to adapt to these changes. Technological shift, new customer behaviors, and changing tax regulations mean you should focus on adapting to the industry trends. Meeting these challenging tasks would require meeting new taxation challenges as well.

Partner with tax advisors that enable your business to become forward-looking.

Customized Tax Planning

Industry, business size, cost-revenue model, and changes in tax regulations are all key factors in formulating a tax plan. This means there is no one-fits-all approach that you can apply across businesses for tax advisory. This is another distinction that you’ll get from a specialist tax advisor in dentistry than a general tax accountant.

Customization in tax advisory also means a tax plan that is practical and achievable. Following industry trends and adapting implies scaling the trends to fit in with your business needs.

Dental offices in different locations and business size face different challenges. For example, the rate of returning customers after the Coronavirus scars will be different in dental practices than in other healthcare sectors. A prominent tax advisor must realize that fact. The revenue streams for the next few months will remain slower for dental practices. Thus, the tax advisors must proactively plan for taxation that minimizes the liability.

Why Do You Need A Tax Advisor For Dentists?

A tax accountant would advise you to minimize the costs and increase the revenue streams. Whereas, a specialist tax advisor will tell you how to do it. For example, most reductions in the service industry like dental offices are never easy. Similarly, you’ll need expert advice at every stage of the business activities.

Partnering with a tax advisor in your industry will allow you to gain valuable insights into the industry benchmarks. Your tax advisor will be in a position to recommend industry benchmark practices. Moreover, you’ll make updated and informed decisions on the changing trends in services, technological changes, and tax policies.

Every business owner considers outsourcing tax consultation services. Some key reasons as dental practices to consider partnering with a tax advisor can be:

  • Access to industry-specific tax advisory services
  • Focus on business operations and growth strategy
  • Compliance with regulatory changes and tax laws
  • Consultation on industry best practices
  • Formulation of cost-effective operational plans
  • Auditing and assurance to comply with laws
  • Accuracy in recordkeeping
  • Financial planning

When You Should Consult With a Tax Advisor for Dentists

Practically you’ll need to consult a tax advisor even before you commence business operations. Also, successful tax planning must begin before the inception of your practice. Right entity structure and accounting practices will affect the Cashflows. That inevitably will change your tax liability.

In addition, you should consult a tax advisor for dentists for advice on operational efficiency. Preparing tax returns with qualified exemptions and tax credits will lower the tax liability. Debt financing and equipment leasing are other important decisions where you should seek expert advice.

Furthermore, there are certain tax implications with a business acquisition, merger, and closing the practice as well. Divestments and closing a business practice also incur tax implications. Thus, you’ll need expert tax advice at any stage of your dental practice.

Contact Ash Dental CPA for a complimentary consultation. New clients are welcome. Call (508) 458-6789.

Dental CPA audit firms report

How Do Dental CPA Audit Firms Benefit My Practice?

Dental CPA Audit Firms

The dental practices and the healthcare industry has seen some recent shifts in practices. The world is moving towards normalization. However, the customer behaviors and clinical practices both wouldn’t be the same again. For the new challenges, there are newer strategies. Thus, reviewing and adhering to these policies can become a make or break decision for your dental practice.

CPA audit firms have been the facilitators of industry changes earlier too. Businesses expect them to be full-time advisors these days. Dental CPAs are no exception to that. Moreover, dental CPA audit firms are in a unique position to drive the change and make your practice stand out from the competition.

One of the key areas served by dental CPA firms is audit and assurance. Often dental practices link the CPA firm’s role to the IRS audit representations only. However, CPA audit firms can offer broader services than IRS representation.

Internal Controls with CPA Audit Firms – Policies and Procedures

As a dental CPA firm, we acutely understand the inside out of the dental practices. We make it easier for our clients to put in place effective internal controls. Internal controls relate to the best practices in every aspect of the business. From financial controls to staffing policies, billing, and credit policies, effective internal controls ensure the smooth operations of your dental practice.

You get an IRS audit call, why did it happen in the first place? There was an internal controls’ lapse in your financial reporting somewhere.

You went for a clinical audit or a peer review, which results in the review committee’s observation of notes on quality controls. It indicates the staff either became complacent, or you didn’t have up-to-date internal controls in place.

Dental CPA audit firms can provide valuable guidelines on non-financial controls. Industry practices can be understood well by specialists only not the generalists.

Some key internal control benefits for your dental practices:

  • Selection of financial and accounting methods
  • Record retention policy
  • Employee benefits, compensation, and fringe benefit policies
  • Financial management procedures
  • Quality control procedures
  • Conflict of interest policy
  • Equipment procurement and purchase policies

Quality Improvements with Dental CPA Audit Firms

Continuous improvements and quality controls lead to enhanced business performance. Dental practices must adapt to the rule of continuous quality improvements as well. Dental CPA audit firms ensure the effective implementation of internal controls.

Unless the devised internal controls are put into practice, they don’t yield the desired results. CPA audit firms can arrange project audits, one-time reviews, or system reviews for your dental practices. Adhering to the quality practices will ensure continuous improvements beyond an individual’s presence. In other words, quality controls are put in place to make the institution stronger than individuals.

A key step in achieving quality controls is to remain proactive. For example, it will take time to restore clients’ confidence after the coronavirus shocks. That holds particular importance in oral healthcare businesses such as dentistry. Thus, a dental CPA firm that keeps up with the industry trends can best advise you on such critical plans.

Financial Controls with Dental CPA Audit Firms

Financial controls are the most sought after assignment from the CPA firms. Loopholes in accounting and financial records can lead to severe audit penalties. Local and State laws require strict adherence to the highest financial controls too. Furthermore, IRS audits are difficult to handle than adhering to financial controls in the first place though.

Create an effective financial controls plan with the help of a dental CPA audit firm. For example, reduce and minimize your financial risk such as:

  • Risk of IRS audits
  • Financial record manipulations
  • Eliminate the insurance fraud
  • Financial embezzlements and fraudulent activities
  • Staff theft and conflict of interest
  • Tax penalties

Likewise, do not take the traditional route of emotional toll with long-serving employees. Instead, let the practices be handled by the experts in your field.

Review of Business Strategy – Benchmarking

Benchmarking against the best in dentistry will optimize your dental practices. In other words, take a holistic approach with industry benchmarking that can lead you to the best services on offer for your clients.

For instance, a dental CPA audit firm with expertise and specialization in the field can formulate an effective business consultation. In addition, a generalist in CPA can best advise you on financial controls only. Thus, this is where the difference of specialists like a dental CPA firm will make your dental practice stand out.

Managing Tax Obligations with Dental CPA Audit Firms

In short, audits and reviews do not mean you should be catching up all the time. Managing tax compliance and other statutory requirements requires having effective controls in place. Therefore, skillful and professionals can do it right, without leaving any loopholes in your tax returns.

Learn More

Contact Ash Dental CPA for a complimentary consultation. New clients are welcome. Call (508) 458-6789.

Tax preparation services for dental offices

What are Tax Preparation Services for Dental Offices?

Tax Preparation Services for Dental Offices

Dental offices and the healthcare industry can benefit from exclusive benefits with specialized tax services. Dental CPAs are the industry-specialists having extensive knowledge of the dentistry business. Dentists and other healthcare professionalscan devote valuable time to their practices by outsourcing dental accounting and taxation to dental CPA firms.

Tax preparation services for dentists, orthodontists, and oral healthcare professionals include various categories. The Dental CPAs can cover a range of accounting, taxation, business consultancy, and business valuation services. The dental CPA firms hold the unique advantage of having expertise in tax laws, as well as the extensive healthcare industry. As a dental CPA firm, we can offer the best advice on tax laws that ensures your regulatory compliance as well as minimizing tax liability.

With our extensive dental industry knowledge and CPA qualification, we can offer valuable tax preparation services. Some of our key resources on offer for your dental practice include:

  • Bookkeeping and Accounting for Dental Practices
  • Tax preparation services for dentists
  • Income tax returns and representation services
  • Tax planning and strategy
  • Consultancy for dentists taxes
  • Auditing and Assurance
  • Financial accounting and payrolls
  • Cash flows and financial statement consultancy

Dental practices are subject to state and federal taxations as private practices. Dentists and healthcare are labor-intensive industry segments. The employee remuneration, benefits, and retirement plans affect the tax liability of the practice owners. Only the dental CPAs having in-depth industry knowledge can best advise you on such sophisticated issues. Our goal remains to strike the balance, and focus on tax reduction rather than tax evasion.

Tax Planning for Dental Offices

Like any other business, the effectiveness of your tax strategy will begin with immaculate tax planning. There are various tax points to ponder when you file for the tax returns with the IRS. Both state and federal tax laws require delicate planning to minimize your total tax liability.

Firstly, tax planning begins with advice on the right entity structure. The margin calculations, depreciation policies, employment benefits, and payrolls, and managing cash flows are all essential in achieving good results. Financial accounting tools play an important role in managing your dental office’s taxes. Effective resource allocations (budgeting) and operational efficiency affect the revenue, hence the tax liability. CPA firms having extensive dental practice knowledge can best advise on these delicate issues.

Consultation on entity structure is quite common. Tax planning requires attention to every business aspect. Dental offices are no exception to that. For example, if you are planning to buy expensive medical equipment next year. Consider a few questions at the planning stage rather than after execution:

  • How will you finance the equipment? Will you buy it outright or lease it?
  • If you plan to buy, what financing options do you have?
  • Which depreciation method will bring the best tax benefits to your practice?
  • Will bank financing be a good option to reduce the tax liability?

Similarly, every financial decision from your dental office will impact the tax returns. Overall, our aim will be to partner with you and devise a forward-looking tax plan.

Tax Preparation for Dental Offices

This is the time when you execute the tax plan. From filing for estimates taxes to claiming exemptions on R&D, you need accuracy and compliance with tax laws. There are tax provisions, exemptions, and allowed deductions that can reduce your total tax liability. In other words, if you planned well with a dental CPA firm, you’ll succeed here.

Consider some of the key points with tax preparations:

  • Filing of Estimated taxes
  • Tax considerations on revenue recognition
  • Backing exemptions and Deductions with records
  • Exemptions for shared services
  • Tax credits from state and federal incentives
  • Considerations with indirect taxes
  • Employee benefits, payrolls, and retirement plans
  • Claiming exemptions with R&D where applicable

Therefore, partner with a professional CPA dental firm to prepare your tax returns accurately and on time. Financial accounting and record-keeping play an important role in tax compliance. However, financial records are just one part of the equation.

IndustrySpecific Services

In short, dental offices are labor-intensive businesses. For example, medical and healthcare equipment are expensive and require delicate accounting treatment. Employee benefits, estimated taxes, exemptions, industry-related regulations such as the CARES act, and indirect costs are all important factors for dental practitioners.

Moreover, tax preparation services for dental offices must consider the industry regulations, business structures, and revenue recognition. Likewise, a competent tax partner will offer business consultation and advice on taxation above the reporting and accounting calculations. CPA firms need to understand the unique service industry requirements that apply to dental practices. For this reason, several key decisions like entity structure, accounting treatments, employee benefits, debt structuring, financing, and alternative investments affect the final tax liability.

As a dental CPA firm, we will aim to begin a partnership with your dental office rather than just providing one-time services. Contact Ash Dental CPA at (508) 458-6789.