The unique accounting needs of dental practices can make managing financial records challenging. Choosing an accounting firm specializing in dental business consulting can help dentists overcome these challenges and improve their bottom line.
One of the biggest budgetary challenges faced by dentists is debt, primarily student loans. These high fixed costs can cause cash flow issues if they’re not managed properly.
Financial Reporting
Analyzing financial reports can be difficult for dental-focused accountants. The industry is complicated, and there are many unique aspects of dentist accounting.
Fortunately, some solutions can make these tasks more straightforward and less time-consuming. For example, cloud-based software makes it easy to connect business bank accounts and credit cards, track transactions, generate financial statements, and manage payroll taxes and deductions.
Outsourcing these tasks to experts help dentists save time and money, allowing them to focus on their craft. Outsourcing can also lead to improved cash flow management and more accurate record-keeping, both essential to improving profitability.
A skilled dental CPA will use specialized financial reporting to help the dental practice analyze its progress, compare it to other successful methods, and plan for growth. They provide a major value by designing a customized, standardized approach to managing the finances, which reduces errors and helps the business meet its goals.
Expenses
It is typical that dentists begin a practice eager to help people get healthy and look great. But as their practice grows, so does the realization that accounting is one of the most important aspects of running a successful dental business.
Expenses are a significant part of running a dental practice. They include the costs of rent, insurance, staff, and equipment. And whether the dentist offers a fee-for-service model or a complicated insurance model, both are not easy when it comes to analyzing expenses and creating an accurate budget.
However, these problems can be avoided by implementing good bookkeeping processes. It will ensure that financial reports are accurate and help dentists make intelligent business decisions that will lead to long-term success for your dental practice.
Taxes
Unlike other accountants, dental-focused accountants have a technical understanding of the business side of dentistry. It means they’re knowledgeable about taxes and the trends impacting the industry.
Taxes are another area where dentist-focused accountants can save dental businesses a lot of time and money, analyzing the best ways to minimize tax liability, eliminating unnecessary payroll tax payments, and helping plan for retirement.
They also have an in-depth knowledge of the financial reporting standards in local jurisdictions and use tax issues unique to the dental industry.
The finances of a dental office are complex, and require a professional to handle them. Whether an office has a small approach or a large operation, the right CPA can help protect businesses and upgrade them too. In addition, a good dental CPA will have a firm grasp of the industry and offer the leadership skills to help dentists and office managers navigate all aspects of the practice.
Payroll
The unique aspects of running a dental practice can make analyzing payroll one of the most challenging aspects of dental accounting. Payroll consists of all the processes needed to keep your finances organized, make intelligent business decisions and comply with tax laws.
Many of these complexities can be avoided using modern cloud-based software to handle your bookkeeping and financial reporting. For example, tracking your transactions, finding appropriate tax credits and deductions, and calculating your taxes make it easier.
A modern accountant will also offer data insights that turn raw data into valuable information and tell you what is essential to your practice. It may include trend analysis, benchmarking exercises, and other similar activities.
