How can a Dental CPA help your practice?
What is the advantage in working with a Dental CPA compared to a traditional, general CPA? A Dental CPA has specific industry knowledge that can help you manage your practice efficiently so that you have more time to focus on your dentistry and more profitability to reach your goals.
In addition to the services that you’d expect from a CPA firm like tax preparation, retirement services, investments services, and practice transitions, a Dental CPA can help you get the best available information about the health of your practice, assistance with planning to ensure that you will achieve your personal and professional goals, and excellent advice to help improve the profitability of your practice.
A Dental CPA generally focuses on three areas, when starting business with a new client:
Getting your bookkeeping in order is the first step when you begin working with a Dental CPA. While this is the most general and basic service that a CPA can provide, the industry knowledge of a Dental CPA can help make sure that the information is presented clearly and in a useful manner to you. Accounts can be arranged to make sure that the important information is prominent and easy to compare on your statements.
Dental CPAs will also make sure that the accounting principles are being properly applied to your bookkeeping so that when an outside agency looks at your books, they don’t have to question the presentation or health of your practice. Some Dental CPAs provide monthly bookkeeping services, with monthly or quarterly meetings to review the financials statements, which ensures that you will understand and be able to act on the information. Solid bookkeeping, while a simple task, is the foundation of all other services a Dental CPA provides.
Dental Specific Planning & Projection
Planning and projection is vital to your and your practice’s long term success. A Dental CPA can help you with yearly, or half-yearly, planning & projection to make sure that your practice is healthy and that you are on the way to your goals. A Dental CPA is generally better equipped to make accurate projections for your practice because they are familiar with the collections and expense patterns experienced by most dentists. Once an reasonable projection is created, a Dental CPA can help you to determine your initial plans or carry out your existing plans for you and your practice.
The three things that most dentists want to plan for are taxes, retirement, and their children’s education. In other words, are you taking advantage of tax strategies to make sure that you are not paying unnecessary taxes, are you going to be able to retire comfortably and on your own terms, and will your children or grandchildren (if you have them) be able to attend college.
Dental CPA Consulting Services
Most consulting services a Dental CPA provides will happen in conjunction with other services. For example, during a quarterly bookkeeping meeting, a Dental CPA will typically benchmark your monthly or quarterly statements to check on the profitability of the practice and help identify areas for improvement or investigation. During half-yearly planning, a Dental CPA may review your fee schedules with you to be sure that you are not under, or over, charging for your services.
During year end planning, a dental CPA might discuss equipment and expansion plans with you to make sure that your capital investment will result in a healthier practice and more enjoyable dentistry for you. With this kind of consulting your Dental CPA can help you to see trouble spots in your practice or recognize opportunities that you can turn to your advantage. While a general CPA may be well equipped to help with financial consulting and a dental consulting firm may be well equipped to help with practice management, a Dental CPA can see the whole picture for both financial and practice management.