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CPA Accountants For Dentists

Dental Accounting Association

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Hugh Duffy

Dental Practice Accounting and Tax – Bassim Michael

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Recently, Bassim Michael was a podcast host and shared why he has focused on dentists over the past twenty years.

Bassim Michael is the President of Only for Dentists, a CPA Firm in California.  He is also the founder of PracticeGauge, a dental practice brokerage firm.

The podcast series is called Accounting Marketing Doesn’t Suck and Bassim was selected because he has successfully marketed his practice to dental practices throughout California and many other states.

To learn more, here is a write up on Bassim’s practice and why he was selected.

Dental Annual Summit in Chicago – AAPD Annual Session

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Chicago - Boat TripIn late May 2019, the Dental Accounting Association headed to Chicago for our annual meeting.  This years meeting preceded the 72nd Annual Session for Pediatric Dentistry from May 24th to May 26th.

The AAPD Annual attracted over 6,000 pediatric dentists and the weather could not have been better.  To meet existing pediatric dentists and attract new prospects, the Dental Accounting Association had a booth in the Chicago Hilton.

For 2019, the Dental Accounting Association is attracting three new member firms, thus bringing our membership total to fourteen CPA Firms dedicated to better service dentists throughout north america.  Our association would like to attract another six (6) CPA Firms into the association and will then slow down growth.

The core initiatives that the group focused on were:

  • Tax Coaching – providing advanced training in tax reduction (well beyond CPA licensing requirements)
  • Leveraging artificial intelligence to operate more efficiently
  • Profit Coaching integrating benchmark standards

Chicago Boat2After the long hours of discussion, several firms got to experience Wrigley Field and take in a Cubs game.  Another night featured a boat ride to take in Chicago’s beautiful architecture.

 

DAA Coming to Chicago – AAPD Annual Session

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The Dental Accounting Association is heading to American Association of Pediatric Dentistry (AAPD) Annual in Chicago May 24-26th.  This is the 72nd Annual Session for Pediatric Dentistry and expected to attract over 6,000 pediatric dentists.

If you are planning to attend, please visit us in booth # 718 at the Chicago Hilton.  We will be located right across from our friends at Bentson & Copple.

Chicago Boat CruiseOn May 23rd, the Dental Accounting Association will meet as a group in our one day summit.  This is our fourth annual summit and participation grows each year.  Each year at one of the major dental trade shows (e.g., ADA Annual, AAO Annual, AAPD, etc.), we meet as a group for a full day of topics.  On Thursday evening, we will let off some steam with a boat tour along the Chicago River and get a chance to learn about the stories behind more than 50 buildings and how Chicago grew from a small settlement into one of the world’s largest city.

For this year’s event, we are welcoming three new members into our association bringing our membership up to fourteen members nationwide.  Our newest members are:

Jon Bell CPA – New Mexico

Matt Leonard – Charlotte NC

Brian Basinger – Utah

The Dental Accounting Association is comprised of independently owned CPA Firms that are dedicated to the accounting industry.  All members are licensed CPA Firms and we cover all fifty states.  We are the only Dental CPA’s focused on tax coaching and participates as a collaborative group at the major dental shows.

Chicago Boat3

Prescription for Big Tax Savings

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The oral health industry is a broad field encompassing many different types of practices. The term oral health means maxillofacial surgery, endodontics, periodontics, prosthodontics, and other types of dental practices.  While the clientele may differ in each setting, the goal is always the same; to help the patient heal and feel better regardless of how many teeth they have left!  Another commonality of all oral health professionals is the desire to pay less in taxes legally.

If you’d like to pay less in taxes, then read on…

 

What is cost segregation and what does it have to do with me?
Cost Segregation is the reclassification of assets in order to accelerate depreciation. This method can be used on buildings that are acquired, newly constructed, and even (on a look back basis) for buildings that have been owned and operated for many years!

Z - Dental OfficeWhat if you don’t own your building? No problem, Cost Segregation can be performed on the interior improvements that you have undertaken as a tenant as part a buildout.  This strategy allows you to “front load” your depreciation at tax time, freeing up significant cash flow which can be reinvested into your building or practice. You will not get more money back, you will simply expedite the time frame of your depreciation allowing your money to work for YOU rather than pay our government! This is a particularly good time to consider a Cost Segregation Study with the newly implemented 100% bonus depreciation regulation as part of the Tax Cuts and Jobs Act of 2017. This legislation is different from the past version because it now includes acquisition where previously bonus only applied to newly constructed buildings.

In addition, the bonus rate (as mentioned earlier) is now 100% for certain assets!

 

What is my tax benefit?
The benefits of a Cost Segregation Study vary depending on the details of your property.

Z - Cost Seg2For example, a newly constructed dental office with a cost basis of $1,540,000 can expect to see around 30% accelerated, and with the new bonus depreciation, the first-year tax savings could be in excess of $180,000!  A rented two story medical office with recent tenant improvements totaling over $290,000 was able to accelerate over 91,000 or roughly 60%!

Again, the results are heavily based on the facts and circumstances surrounding your property, but on average dental facilities can expect to see between 20-50% accelerated depreciation! If you have bought, built or renovated your office (even if you rent) please let us determine your estimated return!

 

If you’d like to pay less in taxes legally and think cost segregation might fit your situation, then complete this form and we will have a Dental CPA contact you immediately.

 

 

Dental Accounting Association

DAA-logoAll members of the Dental Accounting Association are licensed CPA’s and have been vetted.  Each firm attends at least one national dental show (e.g., ADA, AAO, AAPD, AAOMS, etc.) along with some regional dental shows.  In addition, each firm is provided with advanced training in proactive tax planning which is well beyond the state requirements for being a licensed CPA.  This advanced training is designed to find loopholes, credits, deductions and strategies to lower your effective tax rate.  While these methods are perfectly legal, they often require extra work that a local generalist would never consider to offset the incremental time demands.  Cost segregation is one example of proactive tax planning designed to maximize tax credits and loopholes.  The Dental Accounting Association works with a leader within the cost segregation industry to provide ethical ways to lower your taxes.

WHEN YOU NEED A DENTAL CPA

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Have you wondered whether you actually need to have a CPA accountant who specializes in the oral health industry rather than a generalist accountant nearby? Here are four signs that confirm you do:

  • You earn over $150,000 per year – Your odds of being audited once you start earning over $150,000 a year increase quickly. Yes, the IRS is much smaller than it used to be but they are also focusing more on higher wage earners so your odds of getting audited increase exponentially as you earn more.
  • Z - Dental shotYou are self-employed or own an oral health practice – Utilizing the services of an accounting professional is vitally important for any business owner or dental contractor. Tax laws change annually and the biggest change in decades just occurred. The current US tax code is 67,204 pages long and there are over 1,638 different forms.  Making sure all of your deductions are included, your assets are depreciating properly, and you are maximizing your tax savings will wind up saving you money in the long run.
  • You are experiencing rapid growth in your practice – Not only is keeping your finances up to date time-consuming, it’s also complicated. When you’re experiencing rapid growth, it’s time to call in a CPA professional focused on the oral health industry. Having more customers, employees, and vendors is going to require more paperwork and number crunching and can rapidly become impossible for you to manage.
  • You own an office building or are considering adding a new location – Owning your office building can have significant tax saving opportunities if planned properly. Also, office building improvements is another huge tax saving opportunities that most generalist accountants overlook.

If you answered yes to one or more signs above, then complete this form and a Dental CPA will contact you quickly to access your situation.

 

Dental Accounting Association

DAA-logoAll members of the Dental Accounting Association are licensed CPA’s and have been vetted.  Each firm attends at least one national dental show (e.g., ADA, AAO, AAPD, AAOMS, etc.) along with some regional dental shows.  In addition, each firm is provided with advanced training in proactive tax planning which is well beyond the state requirements for being a licensed CPA.  This advanced training is designed to find loopholes, credits, deductions and strategies to lower your effective tax rate.  While these methods are perfectly legal, they often require extra work that a local generalist would never consider to offset the incremental time demands.