If you announce that they’re accountants, everybody is looking for tax advice, even your dental or doctor. It’s true they might request advice when you’re in the middle of a visit!
Instead of giving financial advice at the moment, take a look at these professionals for potential clients. Health care is an expanding sector and dental or medical practices forming a major component of the sector.
While many dentists and doctors might need help with their accounting needs, they may not be aware they need the services of a technology consultant or strategist. Therefore, offering the value-added services required by these businesses could be a beneficial element of your accounting practices.
Dental CFO for dental practices are essential when operating dental practices as they can assist in all financial matters, and free the owner of the practice on the strain of line item budgets.
How Can Dental Accounting Help Me?
Different dental accounting companies provide various services. Here are some of the offerings that dental accountants provide:
- Balance your dental practice cheque book
- Dental practice bill pay
- Payroll of office staff
A tax planning for dentists service company handles the accounting tasks lets you concentrate on the key areas for growth in your practice. Let’s look at what this could mean:
The trusting of a dental accounting service provider to handle the most important financial aspects of a dental practice tasks can free up between 5-12 hours per month to visit patients and work on increasing the production revenue. That’s that you could earn up to $6,000 in additional revenue from production month after month!
Integrating The Practice
Dental and medical practices are high-risk businesses. The first thing on your agenda is to assist your clients in incorporating their practices. A corporation’s incorporation reduces the liability of corporations’ shareholders, which means that shareholders aren’t responsible for any obligations and, in the event of a lawsuit, for liability.
Incorporation procedures vary from one jurisdiction to another, however certain things are generally the same. This includes:
Selecting A Unique Business Name
The creation of corporate bylaws, for example, the time to organise annual shareholder meetings There are fees associated with incorporation registration and annual tax filings. However, corporations that are incorporated typically submit taxes with a lesser cost than individuals.
Equipment For Purchasing
The next item on your agenda is likely to involve buying equipment. Modern dental and medical practices are based on the most recent technology, and therefore purchasing equipment is likely to be the biggest expense for starting the businesses.
It’s crucial to be aware that your dental and medical patients are different from your clients from other industries. Contrary to other industries it’s not always recommended for health practitioners to purchase second-hand equipment. It is better to recommend your dental or medical patients to adhere to the following best practices:
- All equipment must be updated in accordance with the latest safety standards.
- Make sure you purchase your equipment from reputable suppliers
- Employ a lawyer to complete the purchase and make sure that the equipment is in compliance with the requirements of employment and medical.
- Employees should be trained to operate any equipment, especially equipment that directly affects patients like X-rays
- Check equipment regularly to ensure that it’s functioning correctly, and remain aware of any replacement requirements
Your customers will most likely get loans to purchase their equipment. Tax laws in many regions will include depreciation and capital costs that are associated with large purchases of equipment.
Paying, Hiring And Managing Employees
Dental professionals and doctors, especially those who are just beginning their careers, might not be to thinking of their practice as an employer. Your job as business consultant is to assist them in getting into the habit of looking at their practice from the owner’s or manager’s viewpoint.
Management, hiring the dental office bookkeeping process, and remuneration (though it is best to avoid dismissing!) employees will soon be a norm in the professional lives of your clients. As your accountant, you will be a major part of the process of learning.
Begin by offering guidance regarding the general rules for employment in your state, including things like security and minimum wage overtime, annual vacations and holiday days that are statutory. Most of the time your provincial or state government will have a simple page that will inform employers of the rules to follow when hiring employees.
It is important to inform your clients that it’s important to be accountable for these standards of the government and the guidelines for working hours and the expectations for salary reviews, as part of an agreement that is signed between the employees and the practice.
Revision Of Tax Guidelines
Tax rules specific to dental practice accounting and medical practices will vary from jurisdiction to jurisdiction. There are certain accounting and bookkeeping best practices to be discussing with all your dental and medical patients. They are:
- Accounts for every expense
- The reconciliation of accounts should be done every week at a minimum. As their habits grow they may have to reconcile accounts a few times every week.
- Keep detailed records of the business transactions such as employee wages, purchasing equipment
- Sorting everything out by month and clearly labelling each receipts
- Implementing tools for business management
As a final suggestion make sure you suggest your dental or medical clients to think about the tools for managing business. As a professional in accounting you’re well-aware. The advantages of integrating your software for business together with your accounting software.
GAAP Accounting Is Crucial For Dental Practices
If you are planning to sell or expand your dental practice, or DSO, GAAP and its accrual-based accounting system makes it simple for potential investors, buyers or banks to evaluate their financial reports and assess the financial health of your company.
Additionally, thorough reporting helps you to pinpoint areas for improvement to help boost the value of your company. A high degree of transparency can help you establish confidence with potential buyers and investors. You will be able to see all of your earnings, revenues, losses, expenses, investments and much more. This means you can strategically invest to strengthen your company’s financial stability.
Demonstrate Financial Stability
GAAP’s accrual method permits companies to report revenue that is assur but not yet receiv. In the end, the financials of your company will display an increase in net worth than if you utilise. Accounting approach based on cash. This makes your company more attractive in the eyes of prospective investors and buyers so that you’ll be able to negotiate a better price.
Make Cash Flow Predictions And Profitability
It is easier for DSOs as well as dental offices to lure investors and buyers when they have some years of accrual-based documents. They will be able to demonstrate that you have enough cash flow and are able to remain profitable. You’ll have a more balanced balance sheet, which is especially crucial during times of chaos like the pandemic.
GAAP rules allow for dental accounting services professionals and banks to evaluate your financial standing of the company against other practices in the field to assess the creditworthiness of your business.
GAAP reports also reveal future earnings (e.g. the payments made by insurance companies) that offer a comprehensive overview of the long-term sustainability of the company.
It’s not a secret that dental and medical practices are a complex business. However, with these rules in your mind, you can aid your clients manage their business efficiently. This means they’ll be able to concentrate on providing the best treatment to patients that they can.