Safeguarding your dental practice from Long-term interruptions
In a recent study by Ceterus, 80% of dentists received funds from PPP or EIDL loans since COVID-19 began last spring. In the early days of the coronavirus pandemic, revenue dropped dramatically across the industry. The relief loans have helped many practices survive and have helped reserves stay full when the loss of income would have otherwise depleted it.
So what does this mean for the future? While opinions vary on whether a second shutdown is on its way, we now have a precedent for future lockdowns. A shutdown may or may not occur soon, but new illnesses could cause shutdowns in months, years, or even decades down the road.
Dentists’ approach to rainy day funds needs examination and prioritization, given our new reality. Over the last century or so, most shutdowns were short-lived (think hurricane) that would last days or a week. COVID-19 sets a new model for long-term shutdowns that might become a more frequent practice.
We have long recommended that dental practices should financially prepare for longer-term interruptions up to six months and not count on government assistance, which may not materialize in the future. If you don’t have that level of reserves, don’t panic. Start increasing the amount you are setting aside for a rainy day now. Wherever you are in your journey, take one step at a time, and one day soon, you will find yourself at your destination.
About DrillDown Solution
At Drilldown Solution, we are your one-stop-shop for all financial management and business consulting for your dental practice. When you partner with Drilldown Solution, you gain access to exceptional accountants and CPAs who can give you expert guidance and advice on all tax planning and tax preparation issues.
We know how to devise a tax strategy aimed at reducing liabilities and maximizing profits for your dental practice. Our team of tax experts will analyze your full financial picture and design a personalized tax plan to preserve your income.
Drilldown Solution offers a full suite of financial services that include bookkeeping, accounting, tax preparation, and dental consulting. We have the expert team to help any dental practice thrive, even under the current COVID-19 pandemic circumstances. We accomplish this with a three-part system comprised of patient-experience excellence, financial focused operations, and accountability.
Our goal at Drilldown Solution is to put your dental practice in the best financial position possible, utilizing proactive processes and personal care!