How can a Dental CPA help your practice?

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: Solid Bookkeeping 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...
Megan Urban brings years of experience to Jones & Roth Dental Team

Megan Urban brings years of experience to Jones & Roth Dental Team

The Jones & Roth Dental CPAs & Advisors have partnered with well-known Dental Practice Advisor Megan Urban to bring a wide suite of services to dental practices across the Pacific Northwest. This partnership offers an end-to-end suite of services for dental practice success. Megan has been serving the dental industry for over 25 years. She began her journey as a dental assistant and ultimately became a Regional Manager for a large dental group. She has an extensive background in helping dental teams reduce stress and become more profitable, by locating areas of opportunity and helping set solid systems within the practice. Areas of expertise include: Fee Analysis Patient Retention Optimal scheduling Patient Financial Arrangements Collections & Credit Balances Management Treatment Presentation Incomplete Treatment Follow-up No-show & Short Notice Cancellation Reduction Operational System Development Patient Communications & Scripting Growth & Expansion Strategies and Planning Practice Transitions Team Interviewing, Training, Compensation, and Performance Management Jones & Roth Dental Team Leader Jeremy Prickel, CPA stated: “Megan Urban’s expertise and services offering represents a terrific resource for Jones & Roth dental practice clients. We’re very excited to combine Megan’s practice management advisory capability with our financial management expertise and believe our combined efforts will successfully support dental practices looking to make the most of their...
Make Your Practice Shine with a Standardized Dental Chart of Accounts

Make Your Practice Shine with a Standardized Dental Chart of Accounts

CPAs and Accountants have a love/hate relationship with QuickBooks and other small business accounting applications. We love how it provides a fully featured, affordable bookkeeping solution. We hate what happens to reports like the Dental Chart of Accounts when it isn’t used properly. In dental accounting, we often see books that are not in good shape. Highly qualified dental bookkeepers are rare. Staff that may have multiple duties and wide practice management skill sets that are not primarily bookkeeping are often put in charge of the books. Expert advice or training is not always obtained. Let’s be clear, this is stepping over a dollar to save a nickel. If your books are inaccurate and difficult to understand, it’s going to cost more than you might realize. Very commonly, more than half of the time a CPA spends on a dental tax return is simply fixing bookkeeping errors and figuring out what transactions were posted where, and why. It shouldn’t be this way, and it doesn’t have to be. What if your bookkeeping reports were reorganized into a proven format that has been optimized for dental practices, one that provides better information about your practice, and can be easily understood by any CPA? Out of all the bookkeeping changes that we usually recommend, this may be the most important. What is a Chart of Accounts? A Chart of Accounts is simply the list of all income, expense, and equity accounts that are needed for business bookkeeping. It also determines the organization and appearance of the financial reports that you generate. Take a look at an example of our Standard Dental...
How Timing, Size, and Region Affect the Value of Your Dental Practice

How Timing, Size, and Region Affect the Value of Your Dental Practice

When buying or selling a dental practice, the common rule of thumb is a dental practice is worth about 70% of the trailing 12 months’ revenues. But what other factors can drive that ratio higher or lower? There are many factors that can affect the value of your practice such as the types of dental procedures practiced, state of the equipment, use or lack of technology in the practice, state of the regional economy and the size of the practice. In this article, we will focus on a couple of easily measurable factors: timing and size of the practice. Timing Timing is everything, especially when the decision is made to buy or sell a business. Economic factors such as the strength of the economy and interest rates tend to dictate the transaction environment. Officially, the Great Recession, began in late-2007 and lasted through mid-2009, but the effects were felt prior to the onset of the Great Recession and lingered well past 2009. As shown in this chart, transaction multiples were fairly stable from 2001 through 2007 with a slight uptick in average multiples in 2007 at the height of the economic expansion. In 2008, however, multiples fell across industries, and transaction multiples in the dental industry was not the exception. The impact of the Great Recession was felt for years after the recession officially ended, too, as multiples slowly crept back to 2007 levels by 2011. Since 2012, multiples have again stabilized with a strong uptick in 2016. The main takeaway is that whether you are considering buying or selling a dental practice, paying close attention to the economic...
Should you Add an Associate to Your Dental Practice?

Should you Add an Associate to Your Dental Practice?

Adding an associate to your practice is a big decision. If it’s successful it can bring huge benefits to the practice, but if it’s not successful it can add stress and potentially damage the practice. Along with added pressure there is a potential for decline in your income if things don’t go well. We have seen many problems when Dentists add associates and aren’t well prepared, when they have not thought through all of the issues and planned for success. You make treatment plans for your patients every day, do you have a treatment plan for adding an associate to your practice? We suggest that you create an Associate Plan prior to bringing on an associate. We have created some questions and suggestions to shape your thinking about adding an associate with the thought that this dialogue can lead to increasing the probability of success. This can serve as the start of your Associate Plan: Are you tracking referrals? You should know the potential annual collections you might keep in house with the right Associate. Your dental software will allow you to post referrals and types of referrals. This can be a source of valuable data as you consider the right time to bring on an Associate. Is your schedule full? If not, how do you expect to keep another dentist busy? Will you do more internal and external marketing? Do you have a clear path to adding new patients? How many hygienists do you have and what is your patient retention percentage? We like to see retention at a minimum of 85%. So, if you have 1,500 active...
Dental Practice Lifecycle: The Developing Stage

Dental Practice Lifecycle: The Developing Stage

by Theron Sikora, Senior Accountant, Jones & Roth Most dentists are in the second stage of the dental practice life cycle. They’ve purchased their practice and made it through the first, tumultuous years, and are now settling into some kind of routine. This stage will continue until you start getting ready to sell your practice, which for most dentists could be anywhere from 25 to 35 years in the future. Although this stage may not be as challenging or exciting as when you first purchased your practice, there’s no reason you can’t continuously develop your practice and always be pushing for a better, more enjoyable practice. So how do you develop your practice? You can get a really good start by focusing on two of the fundamentals: Increase collections and invest in your practice. Increase Collections Collections are the most important part of your practice. You deserve to be paid for your work and your options for your practice are much more limited if your collections are lower than they should be. There are several ways to increase your collections, and it’s not all about more patients, more referrals, more advertising. There are many, many things that you can do to increase collections, but the most impactful changes are normalizing your fees with a fee analysis and evaluating your PPO participation. Before you start on any changes, you need to take time to develop a fee for service schedule if you don’t have one already. If you are charging your non-PPO patients your PPO fees, you’re leaving a lot of money on the table without gaining a lot of...