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25 February, 2021

Why Does It Matter if I Hire a Dental CPA?

Similar to dentists, Certified Public Accountants (CPAs) are licensed and they are regulated by the state. What’s more, they have disciplinary review boards and continuing education requirements.

Usually, CPA firms operate as generalists and their clients span the gamut from individuals to small businesses to nonprofits to corporations. Although serving in a generalist capacity, a dental CPA offers your dental practice a wide swath of skills and additional expertise such as dental benchmarking or dental practice coaching lacking in generalist firms.  

In contrast, you will find that dental CPAs bring experience and knowledge of the dental industry. While working with so many dentists they’ve learned specific hazards and opportunities that generalists might miss. They also stay updated with dental publications and events to thoroughly understand the latest trends in the dental industry, while keeping themselves abreast of what matters in your dental practice.

 

How a General CPA Firm Comes Up Short for Dental Practices

General CPAs rarely have a concentration of businesses within one particular industry, which makes specific insight very limited. For example, a Generalist CPA firm will normally serve a few medical clients but the concentration of dentists within their practice is very low, perhaps one to three at most.

This translates into a Generalist CPA firm not being able to adequately provide dental practice unique opportunities, help avoid hazards others might miss, benchmarking or practice coaching.

For Generalist CPA firms, they don’t have time to keep informed with Dental Economics, or other specialty newsletters, and are not acquainted with the latest dental industry technologies. Simply put, a Generalist CPA firm will not be knowledgeable about the nuances of dental practice budgets, and the challenges of managing a budget for a dental practice.

 

Benefits of a Dental CPA

In contrast, a dental practice specific CPA firm can review QuickBooks, provide tax management planning, and deliver best practices benchmarking for a dental practice, and tailor to the size of your dental business.

Here are just some of the other helpful benefits of choosing a dental specific CPA firm for your dental business:

 

Design Specialized Reports

A professional Dental CPA will produce specialized reports that can be applied in a similar way as you use a patient’s radiographs for evaluation, diagnosis, and treatment planning. Your dental CPA will evaluate questions like:  How is the financial health of your practice?  What can you do now to minimize taxes next April?  What is your cash flow?  Is the office using “best practices” based on the CPA’s knowledge of other successful offices? Is the dentist working smart – or just working hard – to generate revenue? Is the production appropriate for the number of team members? Is it time to bring on an associate dentist? Is your dental office using the latest technology to maximum advantage?

Specialized Tax Accounting

Dental CPAs are highly skilled in this field, and, as a result, you can potentially save the most on your taxes because they are laser focused on dentistry. Your Dental CPA receives the latest information on tax changes and will make certain that your taxes are compliant with new federal and state laws.

Expert Advice on New Equipment

Your Dental CPA stays well versed with equipment and technology that is being used in the dental industry. They serve as an ideal resource for determining whether the investment will benefit your dental practice.

Awareness

Dental CPAs are experienced in identifying common problems and mistakes that dental offices are inclined to make.  They can offer helpful advice on how to navigate through issues and help you allocate your finances and plan your purchases accordingly.

Benchmarking

Dental CPAs know the standards in the dental industry so they can accurately compare your dental practice to them. They can provide a “bell curve” of sorts by comparing the operation of your dental practice with other dentist offices. They then can offer guidance and help improve your financial practices.

Planning Your Retirement

Many dentists are self-employed and need to prepare for their own retirement. Your Dental CPA is there to design the most viable and relevant plan that takes into account your resources and ambitions.

 

Adding Partners to Your Dental Practice

You may want to realign your business structure and team up with another practitioner or even a couple of other dentists. Your reliable Dental CPA can assist you in the transition phase with this change, offering helpful advice and guidance.

 

Expanding Your Dental Practice

You may be considering purchasing a property in order to expand the operation of your dental practice. A specialized dental accounting firm can put you in touch with banks or loan officers that serve the dental industry. For example, special dental-specific loans from a bank could offer more favorable terms than traditional loans.

 

Dental CPAs Position Your Dental Practice Favorably

Dental CPAs not only produce annual reviews and prepare your taxes, they also can give dental practices cogent advice, thoroughly assess the financial health of their business, perform long-term financial planning, offer guidance on investments of dental equipment, and help dental practices foster adherence to best practices.

Competent Dental CPAs will explain financial principles and budget planning in straightforward ways that allow dental practices to thrive. These specialized CPAs can become loyal financial experts who can greatly benefit your dental practice.

 

Choose Drilldown Solution for Your Dental CPA Needs!

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!

Heather Porter

DrillDown Solution was founded in 2004 and has helped thousands of people save on taxes and achieve their best financial position possible.

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