Running a dental practice is an incredibly demanding undertaking. There are employees to manage, equipment requirements, office maintenance, and the list goes on. Above all, your most important role is to provide the best patient care possible.
Managing your dental practice’s finances can take time you don’t have. Working with a dental CPA who has extensive knowledge about dental practices gives you freedom to focus on patient services.
Here are 8 things to consider when choosing a CPA to handle your finances and why you can’t afford not to hire a dental accountant.
There are many situations in which you may need to borrow money for your dental practice, such as opening a new office, expanding your existing practice, or buying equipment. A dental practice CPA will have strong relationships with lenders and know which option is best. In addition, if you request a loan without adequate preparation, a lender may deem you high risk. Dental accountants know what lenders want in order to be confident in your practice’s ability to pay back the loan.
Raising fees is necessary to keep up with inflation and gradually increase your practice’s profitability. A dental practice CPA knows when and how much to increase your fees for services such as cleanings, fillings, and x-rays based on the market and your specialty– without driving away patients.
Related: Establish A Thriving Dental Practice Using The 7 Pillars Of Dental Practice Management
The more tax deductions you can get means less taxable income for your practice. And there is much more you can deduct from your dental practice in addition to equipment and payroll. For example, did you know that you can deduct certification renewals and continuing education fees?
Tax accountants know what deductions you can take and what documentation you need to provide to ensure compliance with the IRS.
Dental CPAs use benchmarking data to find areas that you should adjust to ensure your business functions properly.
Purchasing new equipment or technology can help you expand your practice and reduce your tax burden. Dental CPAs can help you decide if it's time to purchase new equipment, whether it’s better to pay outright or seek financing, and what time of year is best to do so.
Related: These Are The Top 5 Dental Software Options To Streamline Your Dental Accounting
There are a variety of situations in which you may need a practice valuation including a merger, litigation, and acquisitions.
An audit can be a daunting prospect. A dental CPA can help you understand how audits work, provide audit defense, and help you gather necessary documentation.
The dental industry has specific financial considerations. A CPA who already understands the inner workings of dental practices can help you maximize deductions and tax breaks and ensure the financial health of your practice.
The experienced accountants at Chaliff + Associates understand the demands of running a dental practice. We’re prepared to help dental practice owners with their accounting and bookkeeping needs so financial tasks don’t interfere with taking care of your patients. Ready to chat? Request a consultation today!