Hiring a dental CPA can be a powerful tax-saving decision, one that can help you elevate your practice and keep it financially healthy. Since there are specific costs for dentists, including equipment purchases, continuing education, and loan repayment, dental CPAs can proactively advise dentists on tax-saving strategies throughout the year, not just during tax season. They have a good knowledge of today’s tax trends and complex taxation rules, as well as the ability to restructure your business processes to achieve maximum benefits for taxes.
Generally speaking, dental CPAs can help make sure that you take full advantage of every tax break available to dentists.
What is a Dental CPA?
A dental CPA is a certified public accountant (CPA) who specializes in working with dentists. They act as your financial advisor who can help you navigate the complexities of running a dental practice and achieve your financial goals.
Dental CPAs vs. General CPAs: What’s the Difference?
General CPAs have a broad range of accounting knowledge and can manage the various financial needs of many businesses. They are proficient in core accounting principles, taxation, auditing, bookkeeping, and financial reporting, but their skills are not necessarily specific to any industry. Dental CPAs, on the other hand, utilize their general CPA foundation and focus their expertise on the specific financial aspects of dental practices.
Let’s say there is a new tax law that affects small business owners. General CPAs might take a look at that law and analyze it on a broader scale, whereas dental CPAs could look between the lines to pinpoint aspects that can apply specifically to dentists. Dental CPAs understand the nuances of the dental industry and can provide more specialized guidance. They can tailor these factors to the dental industry:
- Expense structures
- Revenue streams
- Industry-standard benchmarks
- Tax implications, deductions, and credits
- Return on investment (ROI)
Dental CPAs go beyond the work of an accountant. They are true business advisors who can look at your dental practice’s entire financial picture, not just taxes.
Aside from your tax liability, dental CPAs can identify and determine which of your present investments can yield the highest ROI or if changes to your existing business processes need to be made. Dental CPAs look at the bigger picture to consider the potential ROI you could get on a dental-specific investment that you want to pursue. General CPAs might not be able to identify business opportunities in spending decisions.
Dental CPAs are more than tax experts and business advisors; they know and understand how a dental practice runs and how your practice aligns with your personal life. They help you with budgeting, cash flow management, and strategic tax planning, and provide you with tax-driven business strategies to improve your practice’s profitability.
The Bottom Line
For dentists who run their own business, tax season can be a stressful time of year.
But hiring a dental CPA can help you streamline your process, ensure the financial stability of your practice, and position it for continued growth. A dental CPA will be your strategic partner in bringing specialized expertise and guidance to help your dental practice thrive, allowing you to focus on what you do best: providing excellent dental care.
If you are interested in hiring a dental CPA, reach out to your local Patterson Representative or visit pattersondental.com/aprio to learn more about Aprio’s services.
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