6 Questions to Ask When Hiring a CPA for Your Dental Practice
Dental practices are businesses that provide oral healthcare to individuals and families. A dental practice usually includes routine check-ups, cleanings, fillings, extractions, and other procedures promoting good oral hygiene. As with any business, dental practices need to manage their finances effectively to stay profitable and grow.
A certified public accountant (CPA) is essential for dental practices to manage their finances effectively because they have expertise in taxation, accounting, and financial planning, making them valuable dental practice assets. A CPA can help dental practices in many ways, including managing their finances, preparing tax returns, and providing financial advice. They can help dental practices optimize their financial strategies by identifying areas for improvement and developing plans to address them.
Like any other personnel, you must be meticulous when hiring a CPA for your dental practices. For this reason, you must ask the right questions, such as:
#1 – “Do You Have Experience Working for a Dental Practice?”
A dental practice is considered a niche market, requiring someone with specialized knowledge and experience to handle its unique financial needs. A CPA who has worked with dental practices will better understand the industry’s financial challenges and opportunities. They will know how to navigate the complexities of dental practice accounting and taxation, making them better equipped to provide valuable financial advice.
#2 – “Can You Manage Multiple Dental Practices?”
If you own a dental practice with multiple branches, chances are their finances and financial records will pile up enough that it won’t be manageable for a single CPA. A CPA with experience managing multiple dental practices will better understand how to efficiently manage their finances, streamline their accounting processes, and ensure compliance with tax laws. They will also be able to provide valuable insights into the financial performance of each practice, helping you make informed decisions that drive growth and profitability.
#3 – “How Does Your Auditing Process Work?”
CPAs use varying approaches when it comes to auditing. It’s important to understand how the CPA firm will conduct the audit, what documents they need, and how long the process will take. A good CPA firm will have a systematic approach to auditing, starting with an understanding of the client’s business and accounting processes. They will then review financial statements and records, test internal controls, and identify any areas of risk or potential fraud. Part of this is communicating clearly with the client throughout the process and providing a detailed report of their findings.
#4 – “What Tax Management Software Do You Use?”
Tax management software is a critical tool that helps CPAs efficiently manage their clients’ tax obligations. It’s important to ask your prospective CPA what tax management software they use and how it helps them manage their clients’ tax affairs. A good CPA will have a thorough understanding of the software they use and be able to explain how it streamlines the tax preparation process, ensures compliance with tax laws, and minimizes the risk of errors. They should also be able to demonstrate how the software can help you save time and money by automating routine tasks and providing real-time insights into your tax obligations.
#5 – “How Will Your Work Factor into the Practice’s Financial Goals?”
Your CPA should be more than just a tax preparer – they should be a strategic partner in achieving your practice’s financial goals. Ask the CPA how their work will factor into your practice’s financial goals and what strategies they recommend to achieve them. A good CPA can provide valuable insights and recommendations to help you achieve your financial goals.
#6 – “Can You Be a Proactive Business Partner?”
A CPA for your dental practice isn’t just someone who crunches numbers and fills out tax forms because they must also be a trusted advisor who can help you navigate financial challenges and opportunities. A proactive CPA can help you make informed decisions that benefit your practice and its bottom line, which is vital for long-term growth and success.
Hiring a CPA goes a long way in ensuring your dental practice’s financial health and success. For this reason, you must be meticulous when hiring one, especially since they can influence the financial direction of your practice. This way, your CPA can help you optimize your tax strategies, manage your cash flow, and provide valuable financial insights that can help you make informed decisions.
Ash Dental CPA provides top-quality dental accounting services! Dental accounting is a specialized niche, so our accounting professionals will ensure your finances and financial records are arranged and managed correctly. Book an appointment today!