Skip links

CPA Accountants For Dentists

Dental Accounting Association

Header Right

Dental Practice Coaching

Dental CPA Summit – Washington DC – May 2018

by

To drill deeper into the dental industry, the Dental Accounting Association members will be travelling to Washington DC for an in-depth series of presentations and round table discussions.  The 3rd Annual Dental CPA Summit will commence on May 4, 2018 and precede the AAO Annual.

Z - S GunnOur morning speaking will be Susan Gunn.  Susan is a nationally recognized speaker and author of 39 books.  Her background in criminology in conjunction with expertise on embezzlement within medical practices will be the topic of discussion.  Susan’s unique qualifications include being a Certified Fraud Examiner, author of many QuickBooks books, and co-authoring ADA publications on dental financial best practices.

Susan has been recognized by Dentistry Today as a Leader in Consulting every year since 2005.  The American Dental Association recognized Susan as a Financial Matter Expert in 2015 and she has since been appointed as an ADA Consultant to the Council.

Our afternoon speaker will be Christian Pearson, National Director of Dental Partnerships for Treloar & Z - Christian PearsonHeisel.

Treloar & Heisel is the largest specialty advisor for dental specialists covering disability, professional liability, and wealth management services for over 16,000 dental specialists and has been operating since 1959.  Treloar & Heisel works directly nearly every dental specialty association ranging from the American Academy of Pediatric Dentistry to American Association of Oral & Maxillofacial Surgeons and many others.

 

Dental Accounting Association

The Dental Accounting Association is a network of CPA Firms located in North America working collectively to provide best in class tax coaching, accounting and dental practice coaching to dentists.  Our primary focus is on minimizing taxes and closely followed by profit improvement coaching.

And like most dental practices, the Dental Accounting Association members are sole practitioners.  And, we are not distracted with investment (retirement savings programs) and dental brokerage services like the larger dental CPA Firms.

Each member of the Dental Accounting Association is still accepting dental clients and offers fixed fee billing, so you don’t have to worry about hourly billing.

Building a Thriving Dental Practice – Bassim Michael Speaks in Dubai

by

Dubai DentalWhile it’s very common for Dental CPA’s to speak at a local dental show on dental practice management, it is an honor to be asked to speak overseas to the second largest dental trade show in the world.  In the case of Bassim Michael, owner of Only for Dentists, he will be a speaker at the UAE International Dental Conference on Febuary 6-8, 2018.

The UAE International Dental Conference held in Dubai is the second largest dental event in the world and attracts 48,000 attendees from over 130 countries around the world.

Bassim Michael is a Dental CPA based in California that focuses specifically on dental practices throughout the United States.  Z-Bassim-headshotBassim has been servicing dentists since 1997 and his CPA Accounting firm provides tax reduction planning, dental benchmarking and profit improvement coaching.

Bassim is also a founding member of the Dental Accounting Association, a leading of Dental CPA’s incorporating technology advances into the profit improvement coaching and dental practice benchmarking.

If you are travelling to Dubai for this show, simply let Bassim know in advance at 877-718-2937.

Tax Reduction Tips for Dentists

by

Learn the new tax legislation, learn how to lower taxes and increase revenues at the same time.

January 10, 2018 – learn more

Join dental expert Kevin Henry in an interview with Bassim Michael, CPA, CVA, MS, on how to grow your revenue in 2018. They will discuss actionable tips including how to update your fees for the new year. Plus learn how the new tax laws will affect your practice. Get ready for a successful 2018!

With 16 years in the dental publishing industry, Kevin Henry is the former group editorial director for Dental Products Report and managing editor for Dental Economics. He was recently named as one of the top five influential voices in the industry .  

CaptureBassim Michael, CPA, CVA, MS is the founder and president of Onlyfordentists.com, a division of Michael & Company, CPA. Bassim and his team are dedicated to helping dentists improve their profitability and lower their taxes. For more than 20 years, Bassim has worked with hundreds of dentists throughout the United States to help them become better practice managers and leaders.

Z - Bassim headshotBassim is a frequent speaker on topics such as practice management, tax planning and exit planning. He has been quoted in many articles and publications such as the Wall Street Journal, Dow Jones Wire, and many more. He is a founding member of the Dental Accounting Association as well.  For those who can’t attend our live session, a recording will be provided.  To register for this event and learn more, click here.  

This session will be sponsored by SIKKA, the leader in dental practice intelligence and predictive analytics.  sikka

Last Minute Tax Legislation – Impact on Dental and Medical Practices

by

With the newest tax legislation, many dental and medical practices feel like they are being pulled into quicksand.  V - Smiling Dental ClientThat’s right, this year’s tax legislation has created a quagmire of uncertainty for professional service firms who need extra guidance to identify the loop holes created by last minute legislation.  We all know that last minute legislation is like swiss cheese.

Rather than continuing to work with a local CPA, many oral surgeons, orthodontists, pediatric dental practices and dental specialists are searching for a higher level of expertise.  For example, many dental specialists are searching for dental CPA firms that have located tax savings opportunities specific to dental practices.

For savvy dental practice owners that realize the tax saving opportunities, this presents an opportunity to make a more informed business decisions in uncertain times.  Many dental practice owners and newer dentists with high levels of dental school loans are reaching out to the Dental Accounting Association to locate a dental CPA nearby.

Aggressive Tax Savings for Dentists

by

There are very few financial advisors (and even fewer dentists) who have ever heard of cost Z - Cost Seg2segregation depreciation. Dentists are constantly requesting tax advice from their CPAs as well as their financial advisors. Since they are high-income earners, they want the best people advising them about tax write-offs and how fast they can get them.

Most CPA’s and Dentists know the guidelines for section 179 depreciation, which involves a quick write-off for depreciation for equipment and other non-real property related assets. When the question is posed about cost segregation depreciation, they are at a loss and often feel that it does not apply to a small dental practice.

Cost segregation depreciation is a quasi-science for financial experts that provide this service.  Z - Cost Seg imageMany CPA’s do not realize that it is cost effective for a small office building.  In years past, cost segregation applied to larger, more expensive commercial buildings (think manufacturing plant, auto dealer, utility, skyscraper office building, mall, etc.).  As a result, very few CPA’s recommend cost segregation depreciation and most don’t really understand it very well.

Cost segregation depreciation is well understood and accepted by the IRS.  The tax savings are significant for a dental practice if the service is provided by the right experts.  And because the rules are complicated, cost segregation is done by boutique firms that do this full time.

Cost segregation actually came about as a result of Hospital Corporation of America suing the IRS…and winning!  The Supreme Court of the United States heard arguments from opposing counsel and ruled that there are building components qualifying for shorter depreciation periods…5-years, 7-years and 15-years. This is simple mathematics for forensic accountants.

Z - Cost Seg3 - Pie Chart

To provide aggressive tax savings for dental practices, the Dental Accounting Association works with a forensic engineering firm that applies all of the Internal Revenue Code to the advantage of the commercial property owner (the dentist). Specifically, they use IRC § 481(a), the “catch-up” provision. This little section of the tax code allows forensic accountants to give any commercial property owner a windfall tax refund. Without amending a single tax return, they can go back to January 1, 1987 and get your overpaid taxes paid to you in the current tax year. The IRS grants what is called “automatic consent.” For you, the taxpaying property owner, it means the IRS gives you all of those overpaid taxes simply by filing Form 3115. The forensic accountant that Dental Accounting recommends will provide that exact role at no additional charge.

So, if you own or lease commercial real estate of any kind, we can help. Each of our Dental Accountants will recommend the right forensic engineering firm to save you taxes.  The service is so complicated that it is not done in-house by your local Dental CPA.  The forensic engineers recommended by your Dental Accountant are highly trained in building componentization and applying the tax code to those components.

To initiate this evaluation, simply provide us with your contact information and we will put you in touch with a Dental CPA near you to quarterback this project and identify the potential tax savings.

If you are tired of overpaying taxes, this aggressive tax savings tool is rock solid and black ‘n white.

Dental Profit Coaching – Critical Numbers to Track

by

Within a dental practice, there are endless things to track and monitor.  So where does one start to evaluate production, compare performance versus similar practices in the local area, evaluate pricing, and practice profitability?

As Profit Coaches for Dental Practices, our members within the Dental Accounting Association are asked these DAA-logoquestions all the time.   Here’s how we typically approach this process and how we monitor performance and production.

First and foremost, the Dental Accounting Association uses one standardized set of industry benchmark costs, one chart of accounts, and one business intelligence system (SIKKA) to evaluate production, standardize reporting, and evaluate pricing.  That said, here are the key numbers to watch:

Dental Practice Overhead

Typically, the first place to evaluate profitability is examining dental practice overhead and getting control over areas to prune costs.  While most aspects of overhead change infrequently, there are inflexion points when overhead can be reduced dramatically.  These is worthy of a discussion with your Dental CPA for guidance and recommendations on how to cost reduce key drivers of dental practice overhead.

Profit and Loss Statement

While every business owner uses a P&L statement as a starting point to evaluate profitability, one key ingredient is that the underlying categories need to standardized and categorized so your P&L can be compared to similar sized dental practices.  Comparing a typical P&L to another dental practice requires that expenses and categories are classified the exact same.  Absent of this standardized approach, you will be comparing apples to bananas.

Within the Dental Accounting Association, we use one standardized chart of accounts so we are comparing apples to apples.

Personnel Costs

Most dentists know where they stand on this category but having outside comparisons never hurt.

To properly evaluate, personnel costs need to be broken down by departments; chairside, hygiene, clerical, etc.  Second, outsourced services such as temps should be part of this category as well.

Other Key Cost Categories

  • Variable Costs (include dental supplies and lab fees)
  • Facility and Equipment Costs
  • Discretionary Costs
  • Owner’s Comp

Critical KPIs

sikkaAs part of the dental profit coaching, we like to review key performance indicators (KPIs) of the dental practice to compare and contrast profitability.  The SIKKA software makes this process easy for us to evaluate this as well.

Fee Optimization

The last piece of this process is reviewing fees charged by procedure.  This is where SIKKA software excels and helps us pinpoint opportunities.

Selecting a Dental CPA for Profit Coaching

While working with a local generalist CPA is convenient, a general CPA does not have the time, interest or in-depth knowledge of the dental industry to provide dental practice profit coaching.  For that matter, they often don’t have all of the resources to take full advantage of all the tax breaks available for a dental practice. For example, our members provide boutique capabilities like cost segregation and/or put you in touch with commercial real estate experts who focus on the dental industry to save even more money at no additional cost to you.

Dental CPA’s are trained to take full advantage of the tax law for dental practices and they collaborate with other dental vendors to take it several steps further.  Like operating your dental practice, there are economies of scale by working with dental practices and working with boutique providers for dentists. Your Dental CPA provides some of these boutique services in-house and will introduce you to dental experts at the right moments of your practice horizon.

If you are searching for a higher level of expertise, visit the Dental Accounting Association website to locate a Dental CPA nearby or contact us and we’ll make an introduction for you.

 

FREE E-Book – The First Few Transitions as a New Dentist – If you’d like to gain more insight into the lifestages of a dental practice and how a dental CPA can help you minimize your taxes while maximizing your wealth, request our free eBook.  It’s free.