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Business Financial Latest posts Ash Dental CPA November 17, 2022

Types of Dental Expenses That Can and Cannot Be Deducted

When it comes to taxes, there are a lot of things that can be deducted to help you save money in various ways. However, what about dental expenses? Can you deduct from those? Well, the simple answer to this question is: it depends.

There are a few different scenarios in which dental expenses could be considered tax deductible. For example, if you are self-employed and your dental expenses exceed 2% of your adjusted gross income, you may be able to deduct them. Additionally, if you itemize your deductions, you may be able to deduct dental expenses that exceed 7.5% of your adjusted gross income.

However, it’s important to note that in order for any dental expenses to be considered tax-deductible, they must be considered “necessary and ordinary.” This means that things like cosmetic dental procedures are not typically considered tax deductible.

That said, to help you save more money from your dental healthcare, let’s get a little more detailed on what exactly you may or may not deduct:

Dental Expenses That Can Be Deducted

1. Dental Exams and Cleanings

As long as you have a receipt from the dentist, you can deduct the cost of your exams and cleanings.

2. Dental X-Rays

Just like with exams and cleanings, as long as you have a receipt from the dentist, you can deduct the cost of your x-rays.

3. Dental Treatment for a Medical Condition

If you have a medical condition that requires you to see a dentist, you can deduct the cost of your treatment.

4. Dental Implants

If you have dental implants, you can deduct the cost of the implants as well as the cost of the surgery to put them in.

Dental Expenses That Cannot Be Deducted

1. Teeth whitening

Unfortunately, the IRS does not consider teeth whitening to be a medical expense, so the cost cannot be deducted.

2. Braces

While braces can be considered a medical expense, the IRS has specific requirements that must be met in order for the expense to be deductible. The braces must be considered medically necessary in order to treat a deformity, malocclusion, or other dental issues. If it is purely for aesthetic reasons, it may not be considered as such.

3. Cosmetic Dental Procedures

Just like with teeth whitening, the IRS does not consider cosmetic dental procedures to be medically necessary, so the cost cannot be deducted.

Conclusion

As you can see, some expenses are clear and cut on whether they can be deducted, while some others may need more context to know whether you can deduct from there. This type of complication makes it that you may be missing out on deductions you could have enjoyed if only you knew. As such, if you have any questions about whether or not your dental expenses are deductible, be sure to speak with your dentist or tax advisor. With their help, you can know for sure what you can use to deduct your taxes. From there, you can save plenty of money, and the next time you go for a dental procedure, you know whether or not you can use the expense to save extra money!

Ash Dental CPA offers accounting services for dental and healthcare professionals to help dental firms manage their money the right way. If you are looking for an accountant for dentists, work with us today!

Business CPA Latest posts Ash Dental CPA November 17, 2022

7 Signs It’s Time to Find a New Dental Practice CPA

If you’re not happy with your current dental practice CPA, it may be time to consider finding a new one. Here are seven reasons why you should fire your dental practice CPA today:

1. They’re Not Keeping Up With the Latest Changes in the Dental Industry

If your dental practice CPA isn’t keeping up with the latest changes in the dental industry, they’re not doing their job. The dental industry is constantly evolving, and you need a CPA who is keeping up with the latest changes. Otherwise, you could be missing out on important tax breaks or opportunities.

2. They’re Not Providing You With the Level of Service You Need

If you’re not happy with the level of service you’re receiving from your dental practice CPA, it’s time to find someone new. You should feel like you’re being taken care of and that your CPA is available to answer your questions and help you with your tax needs.

3. They’re Not Keeping Up With Your Growth

If your dental practice is growing, you need a CPA who can keep up with your growth. They should be able to provide you with the services you need as your practice grows. Otherwise, you could end up paying more in taxes than you need to.

4. They’re Not Proactive About Tax Planning

A good dental practice CPA should be proactive about tax planning. They should be looking for ways to minimize your tax liability and help you save money. If your CPA isn’t doing this, they’re not doing their job.

5. They’re Not Providing Value-Added Services

A good dental practice CPA should provide value-added services. These are services that go beyond simply preparing your taxes. They can include things like financial planning, retirement planning, and estate planning. If your CPA isn’t providing these services, they’re not adding value to your practice.

6. They’re Not Responsive to Your Needs

If your CPA isn’t responsive to your needs, it’s time to find a new one. A good CPA should be available when you need them and should be able to answer your questions promptly. If you’re constantly having to chase down your CPA for answers, it’s time to find someone new.

7. They’re Not a Good Fit for Your Practice

If your CPA isn’t a good fit for your practice, it’s time to find a new one. A good CPA should understand your business and should be able to provide you with the services you need. If you feel like your CPA isn’t a good fit for your practice, it’s time to find someone new.

Conclusion

If you’re not happy with your dental practice CPA, there are a few key reasons to consider firing them. First, if they’re not providing you with the level of service you need or expect, it may be time to move on. Second, if they’re not keeping up with the latest changes in the dental industry, they may not be able to provide you with the best possible advice. Third, if they’re not responsive to your questions or concerns, it may be time to find someone who is. Ultimately, the decision to fire your dental practice CPA is up to you, but if you’re not happy with their performance, it may be time to make a change.

Ash Dental CPA offers accounting and tax services from a CPA for dentists in Framingham. Contact us today to know more about our services!

Business Latest posts Ash Dental CPA November 17, 2022

7 Effective Tips to Streamline Dental Practice Bookkeeping

A dental practice is a place where people go to receive dental care. For this reason, dental practices use equipment, supplies, and materials specifically designed for dental procedures. However, a dental practice is still a business, meaning it has to keep its financial records through bookkeeping. Of course, bookkeeping is never easy, so many dental practices often struggle with it.

At its core, bookkeeping for a dental practice is the same as for any other business. However, the specifics of a dental practice, such as the types of procedures performed and the supplies used, can make bookkeeping more difficult. In addition, a dental practice might have to track the number of patients seen and the payments received for each patient. Because of this, streamlining the bookkeeping process is recommended, and there are several ways to do this, such as:

#1 – Organize Your Documents

One of the best ways to streamline your dental practice’s bookkeeping is to organize your documents. This might seem like an obvious solution, but it’s one that many dental practices don’t follow. You should have a place to store all of your invoices, receipts, and other financial documents. This way, you can easily find the documents you need when it’s time to do your bookkeeping. If you don’t have a place to store your documents, now is the time to create one.

#2 – Automate Your Bookkeeping

If you’re still doing your bookkeeping by hand, it’s time to automate the process. There are many bookkeeping software programs available that can help you keep track of your dental practice’s finances. In addition, many of these programs can be integrated with your dental practice’s other software programs, such as your patient management system. This way, you can automatically transfer data from your patient management system to your bookkeeping software, making the process easier and faster.

#3 – Keep Your Accounts Simple

Keeping your accounts simple means having just a few accounts for your dental practice’s finances. For example, you might have an account for your dental practice’s revenue and one for your dental practice’s expenses. This will make it easier for you to keep track of your dental practice’s finances.

Alternatively, you can keep track of your dental practice’s finances by using a software program to categorize your accounts. For example, you can create a category for your dental practice’s revenue and a category for your dental practice’s expenses. This way, you can easily see how much money your dental practice is making and spending.

#4 – Close Old or Unused Accounts

If you have old or unused accounts for your dental practice, you should close them. This will help you keep your dental practice’s finances organized. Additionally, closing old or unused accounts will help you save money on fees.

#5 – Cross-Reference Bank Statements

If you’re not already doing so, you should cross-reference your dental practice’s bank statements with your accounting records. This will help you identify discrepancies between your dental practice’s bank statements and your accounting records. Cross-referencing your dental practice’s bank statements will also help you catch any unauthorized transactions that may go overlooked, especially if you’re handling patients.

#6 – Avoid Mixing Personal and Business Transactions

Mixing personal and business transactions can make managing your dental practice’s finances difficult. Therefore, you should avoid mixing personal and business transactions. You should also avoid using your dental practice’s credit cards or bank accounts for private transactions.

#7 – Implement Financial Controls

Implementing financial controls can help you keep your dental practice’s finances organized. Financial controls can also help you prevent errors and deter theft. Some examples of financial controls you can implement in your dental practice include requiring employees to get approval before making purchases and requiring employees to maintain a log of all cash transactions.

Conclusion

Bookkeeping for a dental practice is required to ensure that the practice is run smoothly and efficiently. Because of this, you must keep accurate records and have a system to help you with the process. When you do, your practice will run more smoothly, and you will have more time to focus on other aspects of your business.

Ash Dental CPA provides top-quality dental bookkeeping services. We understand dental practices’ work, so we’re here to take some of the burden off your load for affordable prices. Call (508) 458-6789 today to schedule an appointment!

Business Latest posts Ash Dental CPA November 17, 2022

Overhead Expense Benchmarks for Your Dental Practice to Know

As a dentist, you know that overhead expenses can take a rather big chunk out of your bottom line. That’s why it’s important to benchmark your overhead expenses against other dental practices to ensure that you keep your costs in line.

Luckily, by understanding these benchmarks, dental practices can make fully informed decisions regarding where to allocate their resources and how to improve their bottom line. Try to look at specific expense categories.

Checking these categories of your overhead expense can give you a more detailed picture of where your money is being spent and where you can save. For example, if you are spending a large percentage of your budget on rent, you may want to consider moving to a smaller or less expensive office. Getting in touch with a dental practice consultant can be helpful as well.

Continue reading to understand the ideal overhead expense benchmarks:

1) 24-28% for Personnel Costs

Quite a lot of your overhead will be for personnel costs, which include salaries, benefits, and taxes. To keep your personnel costs in check, you will want to make sure that you are not overstaffed and that you are paying competitive salaries. At the same time, it’s best to consider offering incentives to employees to keep them happy and motivated.

2) 12-14% for Clinical Costs

Clinical costs include supplies and equipment necessary for your practice to operate. To keep your clinical costs down, you will want to be sure to purchase high-quality supplies and equipment that will last. Dental practices should also keep an eye on your inventory and only order what you need.

3) 10% for Facility and Equipment Costs

A dental practice’s facility and equipment costs include the costs of your office or clinic space and the costs of the equipment that you use. To keep your facility and equipment costs down, you will want to lease or purchase high-quality space and equipment. Try to be sure to keep your space and equipment well-maintained as well.

4) 11% for Extra Expense Costs

Extra expense costs include any unexpected costs that may come up. These costs can include things like emergency repairs or the costs of additional staff. To keep your extra expense costs down, you should be sure to have an emergency fund set aside. It’s key to plan for possible extra expenses when you are budgeting for your practice.

5) 0-2% for Discretionary Costs

Discretionary costs consist of different expenses that are not essential to your practice. These can also include things like professional development and business travel. Discretionary costs can be tricky to budget for. It’s an absolute must to carefully consider your discretionary costs and only spend money on those that you feel are necessary.

6) 35-40% for Owners, Doctors, and Associates’ Profits

The final percentage of your budget is allocated to profits. This includes your income as well as your associates’ income. The profits will be determined by your business model, your overhead costs, and your gross collections.

Conclusion

No matter how you measure it, it is important to keep as close of an eye as possible on your overhead expenses. By doing so, you can ensure that your dental practice is operating as efficiently as possible.

Looking for a dental practice consultant? Ash CPA offers accounting for dental and healthcare professionals, as well as assistance with buying, selling, and valuing dental practices. Get in touch with us today!

Business CPA Latest posts Ash Dental CPA November 10, 2022

How to Choose a CPA for Dentists: 5 Tips to Consider

As a dentist, you have a lot of financial responsibilities. You must keep track of your income and expenses, pay your taxes, and make sure your practice is profitable. A certified public accountant (CPA) can help you with all these things.

When it comes to finding a good CPA for dentists, you should keep a few things in mind. After all, they are the ones who will be helping you with your taxes and financial planning. But how do you go about finding a good CPA? Here are a few tips:

1. Ask for Referrals

One of the best ways to find a good CPA is to ask for referrals from other dentists. Talk to your colleagues and see if they have any recommendations. You can also check with your local dental society or association to see if they can recommend a good CPA in your area.

2. Do Your Research

Once you have a few potential CPAs in mind, it’s time to do your research. Check out their websites and read online reviews. You can also contact the CPA firms directly and ask for information about their services and fees.

Dentists should also consider the CPA’s location. It can be helpful to choose a CPA located near the dentist’s office, as this can make the meeting in person easier.

One important factor to consider is the CPA’s experience with dental clients. Does the CPA have experience working with dentists specifically? If so, they will likely be familiar with the unique financial needs of dentists and be able to provide relevant advice and guidance.

3. Schedule a Consultation

Once you’ve narrowed down your list of potential CPA for dentists, it’s time to schedule a consultation. This is a great opportunity to meet with the CPAs in person, learn more about their services, and ask any questions you may have. Be sure to bring a list of questions and concerns to the consultation to get all the information you need to decide.

4. Compare Fees and Services

After your consultations, it’s time to compare fees and services. Ensure you understand what’s included in the CPA’s fees and their services. You should also ask about any discounts or promotions that may be available.

Dentists should get quotes from several CPAs to compare rates. It is also important to ask about any additional fees that may be charged for services such as tax preparation or financial planning.

5. Make Your Decision

Once you’ve compared fees and services, it’s time to decide. Choose the CPA who you feel is the best fit for you and your dental practice.

Dentists have a lot of financial responsibilities, and it is important to have a good CPA to help manage these responsibilities. There are many factors to consider when choosing a CPA, and dentists should research to find the best fit for their needs.

Conclusion

Dentists have a lot of financial responsibilities, and it is important to have a good certified public accountant to help manage these responsibilities. There are many factors to consider when choosing a CPA, and dentists should research to find the best fit for their needs. If you follow these tips, you’ll surely find a great CPA for dentists.

Are you looking for a CPA for dentists? Check us out at Ash Dental CPA. We offer dental accounting services for practices of all sizes, and our accounting services are tailored to meet your short and long-term goals. Get in touch with us today!

Business Financial Latest posts Ash Dental CPA November 10, 2022

7 Mistakes Dental Practices Make That Cost Them Money

Did you know that the large majority of dentists keep far less money than they actually should? Unfortunately, one of the biggest causes of this is not because they don’t know how much to save but because they just can’t afford to. Thousands of dollars are lost through hidden fees, taxes, bad insurance coverages, and so on. And, of course, mistakes along the way can also prove incredibly costly.

Today, we’re going to talk about those mistakes to help you minimize lost money in your dentist practice:

Mistake 1. Not Having a Budget

One of the most common money mistakes that dentists make is not having a budget. A budget is a critical tool that can help you track your income and expenses and make sure that you are spending within your means. Without a budget, it is easy to overspend and get into financial trouble.

Mistake 2. Not Investing in Their Education

Another common money mistake that dentists make is not investing in their education. Dentistry is a constantly evolving field, and it is important to keep up with the latest techniques and procedures. Continuing education can be expensive, but it is worth the investment.

Mistake 3. Not Saving for Retirement

Another common money mistake that dentists make is not saving for retirement. Retirement may seem like a long way off, but it is important to start saving for it now. The sooner you start saving, the more money you will have when you retire.

Mistake 4. Not Having Adequate Insurance

Another common money mistake that dentists make is not having adequate insurance. Dentists are at a higher risk for malpractice lawsuits, so it is important to have adequate insurance coverage. Without adequate coverage, you could be financially ruined if you are sued.

Mistake 5. Not Tracking Their Expenses

Another common money mistake that dentists make is not tracking their expenses. It is important to know where your money is going so that you can make adjustments to your budget if necessary. Without tracking your expenses, it is easy to overspend and get into financial trouble.

Mistake 6. Not Having an Emergency Fund

Another common money mistake that dentists make is not having an emergency fund. An emergency fund is a savings account that you can use to cover unexpected expenses. Without an emergency fund, you may have to use credit cards or take out loans to cover unexpected costs, which can put you into debt.

Mistake 7. Not Planning for Their Future

Another common money mistake that dentists make is not planning for their future. It is important to have a plan for your financial future so that you can make the right decisions now that will benefit you later. Without a plan, you may make decisions that could have a negative impact on your financial future.

Conclusion

Do you find yourself committing the mistakes we’ve shared above? If so, it isn’t too late to rectify them! By discovering these issues quickly and addressing them, you can be well on your way to saving money that’s unnecessarily lost, which you can then direct to your savings and more to keep your dental practice up and running.

Ash Dental CPA offers accounting services for dental and healthcare professionals, ensuring their financial needs and obligations are thoroughly and properly met. If you are looking for an accountant for dentists to help you save money and more, reach out to us today!

Business Financial Latest posts Ash Dental CPA November 10, 2022

6 Tips for Dental Bookkeeping That You Need to Know About

When it comes to dental bookkeeping, there are a few things you need to know in order to make sure everything is done correctly and in a timely manner. Here are six tips to help you get started.

Keep Track of Your Expenses

When it comes to dental bookkeeping, it’s important to keep track of your expenses. This includes the supplies you purchase, the services you provide, and your marketing costs. By keeping track of your expenses, you can ensure that you are making a profit.

One of the most important things to track is your supply expenses. This includes the cost of dental products, such as dental floss, toothpaste, and dental dams. It’s also important to track the cost of office supplies, such as paper, pens, and printer ink.

You should also track the cost of services you provide. This includes the cost of labor, as well as the cost of materials. It’s important to make sure that you are making a profit on the services you provide.

Finally, you should track your marketing expenses. This includes the cost of advertising, as well as the cost of marketing materials. By tracking your marketing expenses, you can ensure that you are getting the most for your money.

Keep Your Records Updated

It’s important to keep your records up-to-date, especially when it comes to your income and expenses. This will help you stay organized and ensure that your bookkeeping is accurate.

Use Bookkeeping Software

There are a number of different bookkeeping software options available, such as QuickBooks, Wave, and Xero. Using a bookkeeping software can help you keep track of your finances and ensure that your records are accurate.

QuickBooks is one of the most popular bookkeeping software options available. It is easy to use and can help you track your income and expenses. Wave is another popular option, and it is free to use. It can help you track your income and expenses, as well as your invoices and payments. Xero is another option that can help you track your finances. It is also easy to use and can help you manage your bills, invoices, and payments.

No matter which bookkeeping software you choose, it is important to ensure that your records are accurate. This will help you stay on top of your finances and make sure that you are able to make informed decisions about your money.

Separate Your Personal and Business Finances

It’s important to keep your personal and business finances separate. This will help you stay organized and ensure that you are keeping track of all of your expenses and income.

Have a System for Tracking Payments

There are a few different ways to track payments. One way is to use a spreadsheet. This can be a good way to track payments for your own personal use. You can also use a payment tracking system like QuickBooks. This can be helpful if you are a business owner. It can help you keep track of payments that you have made and received.

Set Financial Goals

It’s important to set financial goals for your dental practice. This will help you stay focused and ensure that you are making a profit.

Conclusion

Keeping good dental bookkeeping is important for a number of reasons. It can help you keep track of your expenses, make sure you are making a profit, and file your taxes correctly. By following these six tips, you can ensure that your dental bookkeeping is as accurate and efficient as possible.

If you are looking for specialized dental accounting experts, Ash CPA has got you covered. For over 20 years we have been assisting dentists and other healthcare professionals with practice management, bookkeeping, accounting, tax planning, and more. For more information, check our website today!

Business Latest posts Ash Dental CPA November 10, 2022

10 Common Tax Deductions Most Dentists Miss Out On

As a dentist, you are likely familiar with the many tax deductions available to you. However, you may be overlooking some deductions that could save you money.

In this comprehensive guide, we will discuss ten tax deductions that dentists may be overlooking in the United States. We will cover deductions for business expenses, dental supplies, and more. By taking advantage of these deductions, you can save money on your taxes and keep more of your hard-earned income.

So, let’s get started!

1. States Sales Tax

If you live in a state with a sales tax, you can deduct the amount of sales tax you paid on dental supplies and equipment. This deduction is available whether you purchase supplies online or in-person.

To claim this deduction, you will need to keep receipts for all of your purchases. You will also need to know the sales tax rate in your state.

2. Home Office Deduction

If you have a dedicated space in your home that you use for dental work, you may be able to deduct a portion of your mortgage or rent payments, utilities, and other expenses.

To qualify for this deduction, your home office must be used exclusively for dental work. It must also be the primary location of your dental practice.

3. Dental Supplies

You can deduct the cost of dental supplies that you use in your practice. This includes items such as gloves, toothbrushes, floss, and other dental products.

4. Dental Equipment

You can also deduct the cost of dental equipment, such as x-ray machines and dental chairs. If you finance your equipment, you can deduct the interest payments on your loan.

5. Advertising

You can deduct the cost of advertising your dental practice. This includes the cost of print ads, online ads, and even billboards.

6. Office Rent

If you rent office space for your dental practice, you can deduct the cost of your rent payments.

7. Office Supplies

You can deduct the cost of office supplies, such as paper, ink, and toner.

8. Office Equipment

You can deduct the cost of office equipment, such as computers, printers, and fax machines.

9. Summer Child Care Expense

If you have young children, you may be able to deduct up to $3,000 of summer childcare expenses on your taxes. This deduction is available for children under 13 years of age.

To qualify, you must be working or looking for work. The deduction is available for up to $3,000 of expenses per child, per year.

10. Lost Deduction from Prior Years

If you failed to take a deduction in a prior year, you may be able to claim it on your current year’s taxes. This is known as the “carryforward” deduction.

To claim a carryforward deduction, you must file an amended return for the year in which you originally missed the deduction. You then carry the deduction forward to your current year’s taxes.

There are a few limitations to this deduction. First, you can only carry the deduction forward for a maximum of three years. Second, the deduction is limited to the amount of taxes you would have saved in the year you originally missed the deduction.

The Bottom Line

Dentists have access to several tax deductions that can save them money on their taxes. These deductions can be used to offset business expenses, dental supplies, and more.

By taking advantage of these deductions, you can keep more of your hard-earned income and reduce your tax liability.

Ash Dental CPA offers accounting and tax services from a CPA for dentists in Framingham. Contact us today to know more about our services!

Business CPA Latest posts Ash Dental CPA November 3, 2022

What Are the Great Benefits of Hiring an Accountant?

Having your own business can be thrilling. You have a fantastic concept or service, and the business requests are flooding in. Although you may be a professional in your selected field, nobody mentioned that running a business would also necessitate you to be a financial expert, a tax guru, and a business planning extraordinaire all in one. Or do you?

An accountant can be your closest confidante when running a business, and the perfect one for you will be a vital support. Read this article and learn how an accountant can be a valuable resource for you.

What Is an Accountant?

An accountant is a financial professional who helps individuals and businesses manage their money. Accountants can provide a range of services, from preparing and filing taxes to auditing financial statements and providing financial advice. Many companies rely on accountants to ensure that their finances are in order and to help them make critical financial decisions.

An accountant can help take the burden of financial record-keeping and paperwork off your shoulders, giving you more time to focus on running your business. They can also offer advice on financial matters, such as how to save money and reduce your taxes.

Statutory Compliance

To run a successful business, it is important to ensure that you comply with all regulations and requirements. This includes ensuring that all of your paperwork is in order and that you are up to date on your taxes. Failure to do so can result in serious penalties, so it is vital to take compliance seriously.

When you let an accountant take care of your business compliance, you can relax knowing that your financial records are in good order. You don’t have to worry about keeping track of all the different requirements yourself, and you can focus on other aspects of running your business. This can save you a lot of time and stress in the long run.

Administrative Time Management

Hiring an accountant can help remove some burdens from running a business. You can hand over tasks like bookkeeping and payroll, freeing up your time to focus on other aspects of your business or personal life.

Bookkeeping and Receipt Tracking

If you’re struggling to keep on top of your receipts and bookkeeping, hiring an accountant could be the solution for you. An experienced accountant can even provide bookkeeping software training so you can take care of your finances efficiently and stress-free.

Vision Planning

You may have had a great business idea to start with, and everything is going well, but you may be wondering what the next steps are to take your business to the next level. It could be something big like buying a new space, investing in new equipment, or hiring more staff.

Whatever you decide, it’s always a good idea to get an accountant’s opinion to ensure you’re making the right decision. When you hire an accountant, you can create a business structure that will offer tax incentives in the present and future. This will protect your family’s interests in the long run.

Reliable Funding

When trying to secure funding for your business, it is often helpful to have an accountant to help with the process. This is because they can help with financial reporting, which funding providers usually require. They can also help with any other requirements or extra information that may be needed.

Conclusion

Hiring an accountant can be a great way to save time, money, and peace of mind. They can help you keep track of your finances, prepare and file your taxes, and offer advice on financial planning. When choosing an accountant, be sure to ask about their qualifications, experience, and fees.

Are you looking for an accountant for a dentist? Choose Ash Dental CPA, offering top-notch accounting for dental and healthcare professionals. Book an appointment now.

Business CPA Latest posts Ash Dental CPA November 3, 2022

Strategic Finance for Dental Practices – What to Know

Although numerous obstacles have been faced, many dentists viewed the pandemic as an opportunity to implement long-term improvements to their practices and plan.

Here, we will examine various strategic paths for your practice that new dentists can apply to mid-career professionals to those nearing retirement.

Understanding Current State

1. Economy

It is essential for any business, including a dental practice, to have a clear understanding of the current state of the economy. Prices for goods and services have been rising since the early 1980s.

This suggests that the cost of living for your customers and employees has significantly increased. Your retirement savings and withdrawal strategy will be substantially affected by rising inflation. Failing to account for inflation in your practice and retirement planning properly, you risk undervaluing yourself and the patients who keep your practice afloat.

2. Financial Protection

Social Security, retirement savings, and personal savings are the factors of retirement planning, according to financial planners. No matter what combination of these three factors you rely on for retirement income, starting planning early and making regular contributions to your accounts is essential. The earlier you start saving, the more time your money has to grow.

3. Dental Market

Dental practices must keep up with the latest trends to remain competitive. In addition, dental procedures must consider the demographic needs of their patients to stay ahead of the curve. By understanding the dental market, dental practices can make informed decisions about their future.

For Start-Up Practitioners

When discussing long-term planning with young dentists and practice owners, they often say they just started their business with unpaid student loans. Long-term planning will be more straightforward the earlier you begin your dental career.

Prioritizing student loan debt reduction over retirement savings may have adverse long-term effects. Doing otherwise would have a higher return on investment, like spending money on new equipment or tools to deliver better patient care, which can pay off handsomely in the long run.

For Mid-Career Practitioners

It might be time to think about your eventual succession and exit strategy if you are in the middle of your dental career and considering your next moves. Due to this, a solo practitioner’s patient care team may need to include a dental assistant.

Aside from having a potential successor for retirement, having extra hands has many advantages. Increased output and patient assistance during paid time off are two examples.

For Retiring Practitioners

Now is the time to get ready for a smooth transition if your dental career is about to end or you’re thinking about doing something else. Your investment in your dental practice might be the biggest one you’ve ever made, and it has its own set of advantages and risks.

A thorough comprehension of the worth and advantages of your expanding practice should serve as the foundation for personal investment decisions and financial planning. Your valuation should help you plan for the unexpected by telling the whole story of your practice’s value, including the cash flow picture and the value of the underlying assets.

Conclusion

You should be aware that there is no one-size-fits-all approach to planning and pondering your next steps if you are one of the many people doing so. Regardless of where you are in the practice’s life cycle, you have several options to help you decide what to do next.

Ash Dental CPA is a dental accounting firm that can assist dental professionals in managing their wealth to coordinate their plans best. Our wealth management service is tailored to each dentist’s needs. Contact us now!