purchase dental practice

Purchase Dental Practice: Why A Dental CPA Is Used When Buying A Dental Practice

Purchase Dental Practice

When you think of purchase dental practice, you certainly with some relevant industry background. Similarly, seeking help from a professional that offers the same industry experience would make the whole purchase process easier for you.

A dental CPA comes with an accounting qualification as well as dental industry experience. A CPA would ideally communicate effectively on your behalf with the seller. Thus, the role of a CPA starts with finding a suitable dental practice for you to completing the sale agreement to purchase dental practice.

Why Use a Dental CPA to Purchase Dental Practice?

Purchasing a running and successful dental practice business may seem an easy task. Practically, it requires expertise and in-depth knowledge of transaction advisory and the dental industry. A dental CPA is in a unique position to offer you both skills required to complete the transaction.

Here are a few key reasons to partner with a dental CPA when purchasing a dental practice.

Finding the Right Dental Practice for You

Dental CPAs can help you find the right dental practice. That’s the foremost task that you can outsource to a dental CPA. A Dental CPA works with several dental practices for accounting and taxation services.

CPAs also offer transaction advisory services for buying or selling a dental practice. Thus, a dental CPA would be in an ideal position to find the right dental CPA practice for you.

Entity Restructuring

Although it isn’t a legal requirement, you may need to restructure the entity ownership structure. Previous owners might have a different entity structure that suited their interests.

A dental CPA can offer expert advice on the right entity structure for you. It will have direct tax and profitability implications for your business in the long run. Hence, expert advice is essential for making an informed decision on the right entity structure for your newly purchased dental practice.

Due Diligence on the Dental Practice

You cannot perform due diligence on a dental practice unless you possess the right skills. A dental CPA is equipped with the right resources and access to the under-consideration dental practice to perform the due diligence on it.

The due diligence process would include:

  • Recent and historic balance sheet performance.
  • Recent and historic income statement, cash flow, and owner’s equity statements.
  • Financial analysis on key performance indicators such as revenue break-down, overheads, debt-to-equity ratio, and so on.
  • Analysis of the dental practice’s existing and new patients.
  • Detailed reports on patient demographics.
  • Fluctuations in the revenue streams or patient visits.

Dental Practice Valuation

Purchase Dental Practice | Business valuations are an expert’s job anyway. Evaluating a dental practice requires financial and industry expertise. A dental CPA with in-depth knowledge of the dental industry can appraise the valuation of the practice efficiently.

A dental practice owns a large proportion of assets in intangibles such as goodwill and customer retention. Measuring these intangibles and matching them against other assets of the business requires a special skill set.

Offer and Negotiations

Once you approve the right dental practice, you’ll need to make a suitable offer to the seller. Sending the right offer to the seller brings the other party to the negotiation table. You can then negotiate effectively with the seller to reach an agreement. A dental CPA with transaction advisory experience can prove an ideal choice for you at this stage too.

Securing Finances for the Deal

You can secure the finances for the purchase dental practice deal by yourself as well. However, consulting a dental CPA would offer you expert advice on some key measures. For instance, you can decide between variable or fixed-interest rate loan packages. Also, you can consult a CPA on keeping the gearing ratio of the business to an acceptable level.

Transition Process

Once both parties reach an agreed price, it’s time to move the transition process. At this stage, you’ll ideally collaborate with the dental CPA, Attorney, and other stakeholders simultaneously. However, the dental CPA can lead the transition process as most of the issues at this stage revolve around financial measures.

You can ensure a smooth transition process by verifying the legal documents as well as the financial statements of the business. A dental CPA can verify the accuracy of the financial documents of the dental practice for you.

Sale Agreement and After-Transition Process

Finally, when it comes to the formal sale agreement, you’ll need help from a CPA as well as an Attorney. A dental CPA would offer expertise on key financial measures to be included in the sale agreement. For instance, transfer of ownership rights for all assets, liabilities, contracts, leases, rentals, and so on.\

Learn More About Purchase Dental Practice

Call Ash Dental CPA today. New clients are welcome. Book online here.

dental practice transition consultants

The Role of Dental Practice Transition Consultants

Dental Practice Transition Consultants

Dental practice transition consultants are in a unique position to offer services whether you look to buy, sell, or transition to a new dental practice. These professionals are experts in transaction advisory and come with in-depth industry knowledge.

A dental practice transition is a complex process. For instance, it requires thoughtful planning and perfect execution to complete a practice transition. Dental practice transition consultants need to balance the benefits of both sides in a transition process. Thus, it requires special skills and expertise to execute the transition successfully.

What is Dental Practice Transition?

A dental practice transition is a process of incorporating another entity into an existing practice with mutual consent. The process takes place by defining the mutual interests of both sides and transition to a new entity at a specified future date.

A dental practice transition can happen with a practice sale, buy, partnership, divestment, hiring associates, mentoring, and merger. However, the process is different from an immediate sale or buy transaction.

Dental practice transition is an important decision as it affects the mutual benefits of both sides. For instance, dental practice transition consultants can cater to the needs of both sides. They do this by developing a transition plan that works for both parties.

Dental Practice Transition v Immediate Transaction

A key distinction between a transition and a transaction is the nature of the process that follows the turn of events with contrasting features. A transaction looks to maximize the financial benefits of both sides. A transition aims to build stronger relationships between the two sides and also maximize the financial benefits.

A transition plan is developed with a goal of growth or transfer of ownership in mind. Nonetheless, it takes long-term planning and careful execution for a smooth transition. Both parties in a transition may have to work together for a while before the actual transaction takes place.

The Role of Dental Practice Transition Consultants

As we defined above a dental practice transition is a process that completes with a transaction. The primary role of a dental practice transition consultant is to form a success plan for the client.

As a dental practice transition consultant, we take a holistic approach to evaluate the state of practice and needs of our clients. We ensure our clients are ready financially, practice is prepared to showcase what it offers, and the transition takes place successfully.

Let us briefly discuss some key steps in a transition process that you should discuss with a dental practice transition consultant.

Transition Planning

We help our clients to define their goals clearly. A transition can take place in several ways. Selling a practice requires a different plan than buying or partnering with another practice.

For this reason, we provide a clearly defined transition plan to our clients. This includes practice valuation to marketing, and increasing valuation to completing the transaction.

Practice Valuation

Practice valuation does not include profit discounting only. For instance, a practice inherits a brand name, intangible assets, goodwill, and human resources. Likewise, quantifying these intangible assets is a challenging process.

We ensure our clients the best practice valuation by using different valuation methods. Setting the right practice valuation price is important for a successful transition.

Transition Options

A dental practice may need a transition for several reasons. However, every case requires a different course of action and planning.

Some of the most common transition types include:

  • Buying a practice
  • Selling an existing practice
  • Merger and Acquisition
  • Divestment of a segment (branch)
  • Hiring
  • Associates and Partners
  • Owner Retirement
  • Relocation

Each transition process is unique. The most common types involve a sale or buying an existing practice.

Maintaining Practice Standards

You’ll need continuous support from dental practice transition consultants at every stage. Practice valuation is only the first step. Also, you need to ensure that your dental practice maintains the standards that back the price tag.

A step ahead, dental practice transition consultants should advise you to enhance practice value that will contribute to practice valuation eventually.

Price Negotiation and Course of Action

Next, dental practice transition consultants will do the marketing and find potential clients for you. Depending on your requirement, you may need to evaluate different partnering or client options.

Once both sides agree on a price, both sides should define a course of action. Moreover, a transition process may require working both sides for a while at the same place. Thus, as a dental practice transition consultant, we ensure both sides understand the needs of each side and work cohesively.

Completing the Transition Successfully

At the final stage of a transition, you’ll need to go through the formal agreements and paperwork. For instance, you may need to work with an attorney at this stage. However, you’ll need continuous support from the transition consultant for key issues such as transfer of funds, taxes, transfer of ownership, assets evaluations, etc.

Learn more with Ash Dental CPA. We offer consulting, accounting, bookkeeping, and more. New clients are always welcome!

dental practice consultant

Dental CPA: Your Dental Practice Consultant

Dental Practice Consultant

Dental Practice Consultant | All businesses require timely and accurate financial information to make key decisions. Financial information is key to understand and manage the business’s financial performance. Likewise, running a dental practice is challenging in itself. Managing the accounting and finance function of a dental practice can be challenging and time-consuming for a dental practice.

Fortunately, you can leverage the facility of accounting outsourcing to a professional such as a CPA. Consequently, there are pros and cons of outsourcing the accounting function. One key question around the decision is to think of a dental CPA as your dental practice consultant.

Role of a Dental CPA

A dental CPA can provide a wide range of accounting and consultation services. The foremost and primary role of a CPA is to offer accounting and bookkeeping services. These services form the basis of the finance function for any business. Accurate accounting records lead to accurate financial decisions.

The accounting and bookkeeping services of a CPA include:

  • Accounting setup and selection
  • Record-keeping and creation of accounts
  • Financial statements
  • Accounts payable and accounts receivable
  • Budgeting and forecasting
  • Tax preparation and filing
  • Payroll
  • IRS Audit Representation

Experienced CPAs can stretch their services beyond the basic accounting and bookkeeping function though. You can expect dental practice consultation and management advisory services from a skilled CPA.

A dental CPA can offer advisory services that can benefit your practice management. For instance, professional CPAs turn data into valuable financial information. You can leverage the power of data and insights to make informed decisions.

For example, you can get valuable reports on outstanding balances from regular clients that mount up the accounts receivables. You can then decide to ramp up on the receivables or outsource the balance as discounting to a specialist collection agency.

Why Choose a Dental CPA? Accountant v Software 

You can hire an in-house accountant or choose to do it by yourself with the help of accounting software. Then what’s the purpose of outsourcing the services to a dental CPA?

An in-house accountant would increase the employee payroll budget for you. In the long run, you may incur higher costs such as employee benefits, payroll taxes, administrative expenses, and overheads.

Accounting software can be a useful option for your dental practice in the early days. You can fully utilize the data insights from the accounting software as well. But then, it wouldn’t speak to you when you want to ask a question.

How a Dental CPA is your Dental Practice Consultant?

Partnering with a dental CPA offers the right balance between a costs and benefits. Further, you can partner with a dental CPA to avail consultation services.

Business consultation services can prove pivotal in your dental practice management. A good dental CPA will educate and train you about the key aspects of running a successful dental practice. It will enable you to make informed decisions at every stage. Thus, a dental CPA will ensure you become powerful to make key financial decisions.

Here are some key CPA services that you can expect from a dental practice consultant.

Dental Practice Incorporation

Dental practice incorporation is a key decision that affects your practice’s profitability in the long run. In other words, you can consult with a dental CPA to choose the right entity type to minimize the tax liability. Thus, it will ensure that you stay organized and keep control over practice if you have partners.

Outsourced CFO Services

A dental CPA can offer virtual CFO services to your practice as well. Therefore, you can consult a professional for accounting and finance decisions at any stage. These key decisions include budgeting, forecasting, profitability analysis, tax planning, risk management, and so on.

Management and Consultation

These services include every financial decision that affects your practice’s operational efficiency. For instance,  management and consultation topics include overhead analysis, equipment buy v lease, tax structuring, payroll management, capital acquisition, debt restructuring, and so on.

Tax Planning and Compliance

Effective tax planning requires strategic planning that bears fruits in the long term. Moreover, an expert dental CPA would ensure minimization of tax obligation yet remaining compliant with regulatory requirements.

Transaction Advisory Services

Certainly, you’ll need the transaction advisory services. Perhaps, you may need to sell the business for relocation or a new venture. Otherwise, you may just require valuation services for debt restructuring. In addition, these services always require the help of a professional broker such as a CPA.

Wealth Planning

Wealth planning can be a complex task for many dental practices. It starts with choosing the right entity type to maximize the tax benefits. Wealth management services include retirement plans and contributions, employee benefits, investments, health benefit plans, business exit planning, estate planning, etc.

Contact Ash Dental CPA to learn more. New and existing clients may call (508) 458-6789 or book online.

sell my dental practice | sterile instruments

Sell My Dental Practice With A Dental CPA

Sell My Dental Practice

Sell My Dental Practice | If you’re looking to sell the dental practice, you need to understand the prerequisites of the process. Selling a business isn’t a quick decision. It must be taken with careful planning, advice, coordination with experts, and well-timed execution.

A dental CPA firm is an ideal place to seek help when selling a dental practice. Dental CPAs know the industry practice, standards, and trends to help you make an informed decision on business transition.

Understanding the Valuation Process

Before you begin the transition process, you must understand the business valuation process. Selling a business takes time, a few months, and probably over a year in some cases.

Sellers can choose different business valuation methods. For instance, a service business will choose a cash-based valuation method over an asset-based methodology. However, evaluators often implement more than one valuation method to get a clear picture.

Sell My Dental Practice | As a dental CPA firm, we can help you choose the right valuation method. We can work with you on improving the valuation with careful planning and execution. Once you commit to the process, selling your dental practice will be easier.

Tips to Improve Dental Practice Valuation

Business valuation and selling a business take time. The most important factor in selling a business is to improve your business valuation.

Here are a few tips for you to improve the dental practice valuation.

Leverage the Power of Technology

Ramp-up your efforts on matching the latest technology trends in the dental industry. For instance, if your practice doesn’t have a digital X-ray sensor, a potential buyer would notice it immediately. Investing in technology at this stage can increase the total value of your practice manifolds.

Improve Physical Appearance of Dental Practice

Just as visiting patients and regulators notice the physical appearance of your practice, investors would do too. Selling an aging dental practice often sees the issue of lacerated physical assets.

Improve Cash Flows

Cash flows are important for any successful business. Dental practices often pile up accounts receivable over time. It will be a wise idea to outsource the A/R collection to a specialist collection agency at discount. Discounting the A/R will immediately improve the cash flows of your business.

Increase the Patient Base

All dental practices lose patients annually. If you can keep the retention ratio at a satisfactory level before selling the practice, you’ll do good. A step ahead, you’ll increase valuation by increasing the patient base.

Improve Profits

Finally, take time to analyze the strategies for improving profits. You cannot alter historic results though. That’s one reason why it takes a long time to sell a running dental practice. Remember, increasing profits do not always imply cost-cutting or employee layoff.

How to Sell My Dental Practice with a Dental CPA?

We’ll take pride in offering our services to assist you with a dental practice transaction. Whether your dental practice is an aging business or a newer one. We’ll ensure a smooth transition takes place by understanding your needs whether you’re moving towards a partnership, divestment, spin-off, owner retirement, etc.

Let us take you through some key steps in selling your dental practice.

Plan an Exit Strategy

Plan ahead of time. Define a clear exit strategy for selling your dental practice. It will largely depend on the motive behind selling your dental practice. For instance, if you’re retiring or moving to another location will have contrasting implications. 

Increase Business Valuation

The increasing business valuation takes time and consistent efforts. We’ve listed a few key factors above to help you improve the valuation of your dental practice.

Consult a Dental CPA

You can outsource the brokerage to any business broker. But we suggest working with a dental CPA that best understands your industry. A dental CPA can help you with industry trends, benchmarking, and practices to make an informed decision.

Utilize the Best Marketing Channels

Sell My Dental Practice | Dental CPAs are in a position to market your business to the right buyers. They can leverage the power of referrals, networking, and professional links to market your dental practice on sale. You must insist on utilizing both conventional and digital marketing channels to maximize the marketing reach.

Evaluate Buyer Requests

Evaluate the buyer bids carefully. Again, working with a dental CPA can benefit you here to analyze the right buyer bids.

Negotiate and Finalize the Price

Once you’ve shortlisted the potential buyers, you can now proceed with the negotiations. Seek professional help from a dental CPA here. Remember, you’ll need to keep a margin of safety here.

Proceed with the Transition and Close the Deal

Once you’ve finalized the potential buyer and agreed on the price, proceed with the transition. Enter into a formal deal agreement with the buyer to legally protect your benefits.

Before searching for “Sell My Dental Practice”, contact Ash Dental CPA to learn more. Call (508) 458-6789.

Best Dental Consulting Firms

Why Dental CPA Firms are the Best Dental Consulting Firms

Best Dental Consulting Firms

Best Dental Consulting Firms | All types of businesses require accounting and tax consulting services. Businesses can choose to hire in-house accountants or use a CPA firm to outsource the services. It suits some businesses to outsource the accounting and tax services to a professional CPA firm.

One step forward, some businesses need to decide between a CPA firm that comes with industry specialization. Dental CPAs are a prime example of Best Dental Consulting Firms that provide specialized accounting services.

Why Choose a Dental CPA Firm?

A CPA firm’s role is to offer accounting, bookkeeping, and taxation services mainly. So, does it matter if you hire a dental CPA or just any CPA firm? It does.

A dental CPA firm comes with the added advantage of understanding the needs of dental practices. They are the best dental consulting firms for valid reasons. You can choose a CPA to avail accounting and tax consultation services. But that will limit the exposure of the accounting firm to the reconciliation of record books and tax filing only.

Dental CPA Services – Accounting

In short, dental CPA services in accounting head are the basic services that we offer to our clients. Dental practices should expect the highest standard of services from a CPA firm when availing accounting and taxation services.

Let us briefly overview the key accounting services that we offer to our dental CPA clients.

Accounting and Bookkeeping

Outsourced accounting and bookkeeping tasks can help you increase profits by leveraging the benefits of professional services. You’ll witness reduce costs and increased efficiency. We’ll ensure your record books are compliant with GAAP accounting standards.

Accounting Set up

We can help you choose the right accounting software and setup for your accounting and bookkeeping services. Account set up includes bookkeeping write-ups, financial statement templates, accounting records, bank statement reconciliation, and so on.

Tax Preparation

Accurate accounting records lead to the compliant tax function of any business. Our tax filing and setup services ensure that your dental practice will remain compliant at all times. We take pride in offering specialized tax preparation services that focus on tax management rather than tax evasion or avoidance.

Budgets and Cash Flow Management

Cash flow management is a critical success factor for any business. We help you define budgets that match your organizational needs. We’ll ensure your dental practice maintains higher liquidity and smooth cash flow.

Payroll Services

We can help you set up payroll processing and management. Moreover, payroll taxes and contribution plans are important decisions for a dental practice. 

Dental CPA Services – Consulting

In addition to the basic accounting and bookkeeping services, a dental CPA offers valuable consulting services. 

Here are our top dental CPA consulting services.

Dental Practice Incorporation

Choosing the right entity structure is the foremost and important step in running a successful dental practice. We can help you choose the right entity structure such as a sole proprietorship, partnership, LLC, or corporation.

Furthermore, we take a tailor-made approach towards our clients, as there is no one-fits-all solution with entity structures.

Business Planning

In short, business planning services include strategic decisions. These strategic planning decisions set the tone for your dental practice. We can provide the leadership skills to help you make strategic decisions such as entity structure, debt planning, outsourcing, tax planning, equipment leasing, and so on.

Dental Practice Management

Whether you are setting up a new dental practice or running an existing business, you’ll need an expert opinion on practice management. Thus, a dental CPA can offer tailored advice that directly relates to your industry. For instance, the equipment buy v lease decision can change the practice profitability drastically.

Dental Practice Valuation

Business valuation services can provide an accurate picture of your financial strength. Existing and new business owners often require valuation services to make key decisions. For example, you may need business valuations for a bank loan application.

Dental Practice Transition

Dental practices may go through transition phases for several reasons. For example, when you’re looking for a joint venture with a new partner to expand services. Transition services require experience and skills in transaction advisory services.

Overall, we can pride ourselves on offering key dental practice transition services. These services include buy/sale practice, owner retirement, succession planning, mergers and acquisitions, price brokering, bid preparation, and so on.

Contact Ash Dental CPA to learn more.

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.

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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.

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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.