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Dental CPA Maryland

Dentists, Borrowing Money Can Actually Be Beneficial For You. Here’s How

Were you planning on upgrading your equipment or upgrading your IT infrastructure in the new year? Have you been saving up throughout the year for these upgrades? I’ve got some news for you. Read on to learn how borrowing money for these upgrades could be the best decision you make all year.

Today, the interest rates are low, which makes borrowing money for upgrades and new purchases easy and effective. By borrowing money instead of spending out of pocket, you can maximize your tax benefits while keeping the cash flow of your dental practice healthy.

Should Dentists Borrow Money For Tax Savings?

Yes, we firmly believe dentists should borrow money from the current market to expand their practice. This allows them to leverage the low-interest rates to fuel their growth.

Debt can be an inescapable trap if used injudiciously. However, if you work with an experienced professional dental CPA, we strongly recommend taking a loan with a tenure of 7 to 10 years for any upgrades, new purchases or improvements.

Why do we believe this is the best way to grow? Because we fundamentally believe that all significant purchases and equipment should be paid for throughout its useful life and not upfront. A long-term load helps you spread the outflow of cash across multiple years, which also helps with appropriate depreciation write-offs.

In our experience, dentists who have used this approach tend to always have cash on hand, ready for emergency use. Your earned money is better used for your personal growth, while borrowed money can be utilized for business growth. A professional dental accountant and dental tax consultant like sigma can help you structure your expenses in a way that’s beneficial for your dental practice as well as for yourself.

Are Low Interest Rates A Trap?

Interest rates are at record lows thanks to the economic troubles. Lenders are aggressively pushing loans with relaxed credit standards to attract more customers.

If you’re planning to start your dental practice, you can get a loan for as low as 2.99%, whereas expansion loads are available for as low as 3.5%. After getting your tax rebates and tax write-offs, these funds cost you less than 2.5% on average. This deal is too good to pass up.

So to answer the question, no. Low interest rates are not a trap and, if used judiciously with consultation from a professional dental bookkeeper and dental CPA. If you don’t have access to an expert Dental CPA in Maryland, speak to our team at sigma for a free consultation.

Can Borrowing Help Me Reduce My Tax Liability?

Yes, absolutely! According to the current tax laws, $1,050,000 can be expenses for purchases in a tax year. However, this number keeps changing, and you may not be able to keep up with the updates.

Any borrowed funds allow you to use your cash in hand to lower your tax liability even further by claiming tax deductions like retirement plan contributions.

We recommend focusing on your core competence and allowing a team of professional dental accountants and virtual CFOs to help you grow your practice. This way, you always take home what you deserve!

Does Borrowing Have Any Benefits For Me When I Want To Transition From My Dental Practice?

Absolutely! If you’re part of a large group of practices and plan to incorporate new partners or practices into your business, there are multiple benefits of borrowing money.

The cash outflow can be spread across the years and optimized by changing income division formulas or incorporating new members into the business. With each successive year of ownership, a new partner’s share of the cash burden will grow proportionately.

Similarly, if you’re nearing retirement and planning to sell your practice within a few years, you won’t have to bear the full cost of those upgrades and expenditures, which will be beneficial for you on a personal level.

The primary purpose of borrowing money for significant expenses is to create fairness in practice transition situations.

Other Benefits Of Borrowing Money For Dental Business Growth

1. It’s Convenient And Easy To Get Loans

Getting an investor on board can take months, if not years, for the deal to close. On the other hand, a business loan is a lot easier and convenient to get and usually requires getting in touch with a lender, submitting documentation, and getting the money in your account.

2. User-Friendly And Flexible

Loans are flexible and can be used for any purposes you see fit. On the other hand, investments are usually earmarked for certain kinds of expenses.

3. There Is No Profit Sharing

Investors expect regular returns in the form of dividends and distributions. On the other hand, loans don’t require any additional profit-sharing apart from what you already have in place. This is another major benefit of debt borrowing.

4. No Collateral Required

In today’s economy, getting collateral-free loans is a straightforward task. Most business loans are unsecured and don’t need any collateral as long as you meet the required qualification. This makes loans an excellent way for smaller businesses and startups to grow.

We hope this blog helps you understand how you can borrow money from the market and expand your practice while maintaining a healthy cash flow. If you are confused and need help with your dental accounting, dental bookkeeping or Virtual CFO services for dentists, then please feel to drop by our office to discuss how we can help you grow.

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specialist dental CPA

These Dental Accounting Mistakes Could Be Costing You Thousands Of Dollars In Lost Revenue

A growing dental practice needs stable cash flow for it to run successfully. Dentists like you are experts at helping people and running your medical practice, but accounting for a business is a whole different ball game. Many small dentists often overlook vital aspects of dental bookkeeping and make mistakes that cost them thousands of dollars in lost revenue.

In today’s blog, we’ll be taking a look at mistakes you should avoid as a dentist if you want to take home what you deserve. So, let’s dive in.

Dental Accounting Mistakes Only A Professional Dental CPA Can Catch

A Dental CPA uses an intricate accounting system that helps your dental practice run smoothly without hiccups. If you’re still making these mistakes, then it’s time for you to fire your dental accountant or CPA!

Mistake #1 – Treating Cash Flow And Profit Like One And The Same

Let’s take a quick look at what’s cash flow and what’s profit before we delve into this topic.

Profit – An organization’s profit is calculated by subtracting expenses from revenues for a specific time period. Net Profit is calculated after completing a Profit and Loss Statement and deducting all operational costs from it.

Cash flow – A company’s cash flow is calculated by comparing money coming in and going out of a dental practice during a specific period. Once the cash flow equation is computed, accounts receivables, inventory, and depreciation costs are considered.

Many dentists we’ve helped employ bookkeepers or accountants who don’t understand the fundamental difference between cash flow and profit. The results? Inaccurate financial reports that mislead business owners into making financially unviable decisions.

As a business owner, your sole focus should be on profits and increasing your profits. If your cash flow keeps rising, but your profits don’t, then it means your financials are flawed.

Speak to a professional dental CPA in Maryland today to understand how you can avoid this mistake and grow your bottom line.

Mistake #2 – Forgetting To Record Transitions In The Right Time Period

An expensive mistake dentists make is not closing the book at the end of every month.

If your accountant doesn’t close your month every month, you’ll face many issues when you reconcile your financial statements with your bank statements which will cost you dearly. Once your books are closed, no modifications should be made to them, which will ensure that you always have updated financial records on hand whenever you need them.

Reconciling all accounts of the business, preparing month-end financial statements, and ensuring all dues are cleared are all included in book closing activities.

Are you making this grave mistake and recording your transitions in the wrong time period? Please speak to an expert dental accountant in Maryland today to learn how we have helped over 50 dentists get their finances on track.

Mistake #3 – Misclassifying Expenses And Distributions

If you’ve structured your business as per your needs, you may be drawing a salary or taking distributions from your profits. One of the biggest mistakes we see small dentists in Maryland make is that they don’t classify these appropriately, which leads to underpayment of estimated taxes and invites the wrath of the IRS.

A professional dental accountant and bookkeeper in Maryland helps you classify these correctly to ensure you don’t irk the IRS and provoke them to do an audit of your business.

Mistake #4 – Failing To Monitor Key Performance Indicators

A dental practice is a business at the end of the day. If you don’t measure performance indicators and track them properly, you’ll lose out on insights that could help you grow.

A business is fundamentally built by two costs and revenue, i.e., profits and expenses. If you don’t track your expenses and consider your profitability when making growth decisions, you’re missing out. Is your CPA letting you make this mistake? Talk to us today to learn how we can help you.

Mistake #5 – Using An Non-Standard Chart Of Accounts

A chart of accounts is created when we track how funds are received and spent to make the financial statements for a specific period. For example, if your bookkeeper or accountant uses a chart of accounts that are generic and not specialized to a dental practice, then you’re making an unforgivable mistake.

In scenarios where non-standard charts are used, the financial statements and records are always skewed, which leads to wrong decisions because of a lack of insights.

Mistake #6 – Working With An Inexperienced Accountant

The last mistake on the list is also one that costs dentists the most in lost money—working with an inexperienced CPA who doesn’t understand how the intricacies of the medical industry can be an expensive mistake for any dentist. Why? Because they simply aren’t aware of all the claims, deductions, and loopholes that make running your dental practice more profitable.

An inexperienced dentist will also overlook many key things that an experienced dental accountant can catch and rectify. For example – A friend of mine told me this story where a dentist lost over $3,50,000 over 24 months due to employee theft, and they didn’t even know about it until they brought in an experienced specialist dental CPA to help them.

A CPA for dentist like Sigma has years of industry experience and has helped multiple dentists scale their business effectively with the help of Tax Planning Services for Dentists, dental accounting services, dental bookkeeping, retirement planning for dentists, and much more.

Talk to us today to understand how we can help you grow and scale your dental practice with the help of effective dental accounting solutions. Our friendly team of In Maryland is always happy to help.

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Improve Your Dental Practice Profits

How To Improve Your Dental Practice Profits – Effective Ways To Take Home More

The United States of America has over 200,000 dentists that operate their practice. This number is stated to keep growing. It’d be safe to assume that all these dentists are always looking to save up on their expenses and cost and increase the bottom line so they can take home more money for their families.

All dentists know how to provide excellent care to their patients. However, not all dentists know how to run a business well. You must have heard the term lean and agile in the context of running your business, but are you aware of what they mean? In this guide, let’s take a look at how you can improve your dental practice profits by trimming out the fat and making your business a lean, mean money making machine.

Effective Ways To Boost Dental Practice Profit

1. Increasing Your Capacity

The best way to boost your dental practice profits is by increasing your capacity to treat patients per hour. The more people you help, the higher your revenue. It’s simple.

How can you increase your capacity? By freeing up your time. Let me elaborate. If you spend an hour every day doing dental practice accounting and bookkeeping, then this is an hour in which you’re not treating your customers. You can offload the task of dental bookkeeping to a dental CPA in Maryland like Sigma to free up your time and resources.

Other ways to increase your capacity include –

  1. Hiring training staff to take care of low level issues and prep
  2. Streamlining your processes, so only the most pressing issues come to you
  3. Getting rid of administrative duties by outsourcing them

2. Specializing In High Profit Procedures

You might have heard this phrase – Money is in the niche! And we can’t agree more. You can specialize in high profit procedures like implants, endodontics, porcelain veneers, and setting crowns and bridges et al. to improve your bottom line. This isn’t to say that you should turn away your loyal patient base, but you can start marketing yourself as a niche or procedure specialist so all your new client base knows what to expect.

3. Strategic Partnerships Are A Key To Growth

Your family time is as important as your work time, if not more. So while you’re spending quality time away from your practice, you are losing out on revenue. You can consider partnering up with an up and coming dentist who’s looking for the resources to start their practice to run your clinic while you’re busy with other things in life. This has a multifold effect. You get more patients and loyalty, and you are able to give back to the local community by providing access to those who need it.

4. Reduce Dependencies On Dental Insurance

Insurance companies are always on the lookout to reduce the profits of a dental practice in shady and sneaky ways. Often, they fix the prices a clinic is able to charge for treatments which could seriously impact your bottom line.

If you have the resources and capabilities, consider developing your own financing program for your patients where they don’t have to rely only on insurance and can also opt for a part payment in the form of monthly installments.

Cut out the middleman and gain all the benefits and then some by utilizing the correct techniques and tools.

5. Focus On Customer Delight

Happy customers tend to have a ripple effect. Satisfied patients turn into brand advocates who, in turn, help you grow your customer base. The more positive reviews and testimonials you receive, the better your practice’s reputation. On the other hand, negative reviews can result in a loss of patients and decreased revenue.

It’s proven that maintaining your current patient base and growing your revenues through them is a lot easier than acquiring new patients. Some studies reveal that the cost of new customer acquisition is about 6 to 7 times higher than what you spend on retaining a customer.

The easiest way to retain your customers is to delight them with the help of stellar services, right from the receptionist to the primary healthcare provider- everyone must focus on customer delight.

6. Outsource Dental Accounting To Experts

As a dentist, you specialize in helping your patients get rid of tooth and gum related problems, but would you be able to help someone with a backache they may be having? Probably not. Similarly, a CPA who serves multiple industries may definitely be able to help you, but since they don’t specialize in dental accounting, they may not be the best choice for you.

A dental CPA in Maryland like Sigma has years of industry experience and has helped multiple dentists scale their business effectively with the help of Tax Planning Services for Dentists, dental accounting services, dental bookkeeping, retirement planning for dentists, and much more.

Talk to us today to understand how we can help you grow and scale your dental practice with the help of effective dental accounting solutions. Our friendly team of In Maryland is always happy to help.

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Tax Credits For Your Dental Practice

Do You Want Tax Credits For Your Dental Practice?

Did you know? – Dentists who pay more than 30% in federal, state, and self-employment taxes combined may be overpaying their fair share. A dental tax consultant can help you save your tax. Wondering how? Here are our best tax saving tips for dentists compiled for you. So, read on to learn how you can save tax as a dentist.

There have been significant changes to both high-income individuals and small businesses with the new tax law. Since you are a dentist who probably falls into both of these categories, be sure to familiarize yourself with the major changes as soon as possible.

Over the years, helping dentists save tax, we at Sigma have realized that about 95% of all our clients were paying way more in taxes than what they owed. The reason? Poor tax planning for dentists by CPAs who don’t specialize in dental practice accounting. Many CPAs fail to take advantage of all of the opportunities offered by the U.S. tax code because they simply aren’t aware of them. Here’s how you can get the benefits for your business.

1. Expense Your Equipment

Deductions under section 179 help you reduce your taxable income by accelerating how you expense new equipment. Buying new or used equipment can immediately be expensed up to $1,000,000. Having said that, if you purchased equipment worth more than $3.5 million, there are limitations. Call one of our expert dental accountants at Sigma to understand how you can use these expenses to save taxes.

Bonus depreciation can accelerate the expense process for new or used equipment. As an alternative to writing off 100% of the equipment’s value, you can depreciate the balance over the Modified Accelerated Cost Recovery System (MACRS) life.

2. Perform A Cost Segregation Study

Did you build, buy, or renovate your office building in the last 6 to 12 months? If yes, consider performing a cost segregation study.

How do cost segregation studies work? It allows you to use bonus depreciation to reclassify and expense some construction and renovation costs immediately using shorter depreciation classes.

A CSS can be complicated to undertake if you aren’t an expert at accounting. Fortunately, we have a qualified and certified team of Dental CPAs at Sigma who can help you perform the study.

3. Are You Appropriately Preparing For Your Retirement?

Are you deferring your wages into a 401(k) to prepare for your retirement? If yes, you can contribute and defer about $19000 if you are under the age of 50 and about $25000 if you are over the age of 50.

If you don’t have a plan for your retirement yet, you’re making a grave mistake! Talk to an expert today and get a customized program that may include contributions to an Individual Retirement Account (IRA). You can contribute about $6000 annually towards an IRA to save up on the 3.8% investment tax.

Additional Things To Consider –

  • Consider Roth deferrals or pre-tax deferrals.
  • Utilize the SIMPLE IRA plan for employees
  • Check out a 401(k) with safe harbor
  • Establish a defined benefit plan that is cash balance based

Jigna, our principal, is a retirement planning expert who has helped multiple dentists plan for a stable future. Join them on their quest for growth and stability by booking a call with us.

4. Use Your Family To Your Businesses’ Advantage

If you have children, you probably give them pocket money for expenses. Use this to your advantage by employing your children and participating in the IRS-approved strategy to reduce your payroll taxes.  This is a Win-Win as you get the tax saving while your children get money for their expenses or even college.

Unemployment taxes are not due until children turn 21. Additionally, they are not liable for payroll taxes, Social Security, Medicare, or unemployment taxes until they turn 18. They also will not be subject to the FICA and Medicare taxes on their wages. LLC owners can benefit from family tax breaks, just like sole proprietors.

Bonus Tip – Your Child’s College Education In The Future Can Save You Money In The Present.

If you plan on sending your child to college (Which you most likely will and should), you can set up a 529 Plan.

What’s a 529 plan? A 529 plan is a tax saving instrument where the contributions are tax-free, as long as the distributions are used for qualified educational expenses like college. Some states also offer additional tax benefits for a 529 plan.

You’re probably still fairly confused with all of this. Do you want help? Allow us to unburden you from taking care of your financial health. We at Sigma always strive to ensure that businesses that work with us are healthy and growing by providing the best dental accounting and dental bookkeeping services for them. Feel free to book a meeting with us, no obligations and no strings attached. The coffee’s on us.

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tax planning for dentists

Tax Reduction Tips For Dentists

We’re moving closer and closer to the holidays (Woo Hoo!), and this is perhaps the best time to look at your books and ensure your financial health, just like your patient’s oral health, is in good shape. Tax planning is your biggest asset when it comes to tax reduction and tax minimization. A certified professional tax planner in Maryland can help you reduce your tax burden and ensure that you take home what you rightfully earned.

In today’s blog, we’ll take a look at some tips we have for dentists who wish to save taxes with the help of professional tax preparation. If you have questions about your taxes or don’t know what deductions you should claim, then speak to a Certified Public Accountant (CPA) from our qualified team. At Sigma, we are dental accounting specialists.

Best Tax Reduction Tips For Dentists

Tip 1 – Ensure Your Business Entity Structure Is Set Up Appropriately

If you’re a new dentist, you might have started as a sole proprietor to save tax until you gain revenue. Many dentists are still filing their taxes as C-corps, which might not be as advantageous as you may think. Consider filing your taxes as an S-corp, which will ensure your business entity structure is appropriately set up to ensure growth. Talk to a dental CPA in Maryland today to understand how you can switch from filing taxes as a C-corp to an S-corp. A professional dental accountants can help you make this change retroactively as well. A member of our certified dental accounting firm can help you understand the benefits of filing your taxes in the correct category.

If you’ve set up a DPC or a dentistry professional corporation when setting up your business, then you made the right decision. You can “share income” with your family members as dividends, provided they work with your practice at least 20 hours a week throughout the year. You can share up to $30,000 without significant tax implications per member of your family.

Unsure if you’ve set up the business entity structure currently? Contact Sigma today to get a free consultation and to learn why dentists need a specialized dental accountant.

Tip 2 – Share The Tax Burden By Employing Your Kids

Children age six and above can legally be employed by a business in the United States. You must consult a professional Dental CPA like Sigma to learn how you can use the annual tax-free limit to share your tax liability with your kids. These limits are updated regularly, making them difficult to track but easy to implement if done by a professional.

You’ll be able to pay your kids by showing how you use them as models in your marketing and advertising or how they contribute to the upkeep of your space. This tax-free money that you can give to them every year can be used to fund their college education, pay for private school tuition, or be invested into a ROTH IRA.

Talk to a professional dental bookkeeper and accountant today to ensure you set your children up for success in the future.

Tip 3 – Add An Accessible Website To Your Businesses’ Marketing Arsenal

If you don’t have an accessible website to help you market your business, you’re missing out! The world is digital, and if you don’t have a digital presence in today’s day and age, you practically don’t exist.

The IRS has allowed dentists to write off up to 50% if you upgrade to an accessible dental website. This move aims to ensure adherence to the ADA – Americans With Disabilities Act. Most dentists think that the ADA only applies to physical offline locations, but as things quickly move online, various online assets like an accessible website become a necessity for any dentist.

If you’ve recently upgraded to an accessible website or plan on moving to a new website, then talk to a professional CPA for Dentists in Maryland and understand how you can use that to your advantage

Tip 4 – Prepare For Retirement

You may have just entered the industry and may not plan to retire anytime soon, but it never hurts to prepare for the future. Generation wealth for dentists can be built by accurate planning and timely execution.

There are many options available to help you plan for a stable retirement, right from a simple 401(K) to different kinds of IRA and everything in between. These options might confuse you, a dentist, but a specialized dental accountant like Sigma knows which plans are suitable for the type of investor you may be.

The plans you choose will be dependent on the size of your practice, your age, number of employees, so on and so forth. Talk to a dental accounting specialist who can help you plan for your retirement and ensure the wellbeing of your employees when the time comes to move on.

Tip 5 – Ensure You Claim All The Necessary Deductions

Did you know you can claim tax deductions on the annual holiday party you organize during the festive season? You can claim up to 100% deductions on six meals and entertainment if you invite all of your staff to the function. The deductions you lose by failing to reclassify these expenses into a separate category amount to 50%.

A professional tax consultant for dentists can help you classify your claims and ensure you utilize tax deduction to the maximum extent possible. That’s why it’s crucial to hire the right dental bookkeeper and dental tax consultant.

These five tips will help you save up on your tax liability and ensure that you prepare your taxes while providing maximum benefit to your dental practice. Talk to one of our experienced dental accounting team members to learn how we help dentists prepare taxes and ensure compliance while saving you money.

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Specialised Dental Accountant

Does A Dentist Need A Specialised Dental Accountant?

Several years ago, a friend of mine told me this story. There was a small but thriving dental practice owner in the tri-state area who lost $350,000 over the course of 24 months. Surely you wonder why he lost the money? The simple answer – Employee theft. Their trusted administrative assistant was quietly embezzling money out of business and into their own pockets.

So, how did you come to know about this? By meeting a professional dental accountant. The local CPA they had hired was unable to spot this nefarious activity because they didn’t specialize in dental accounting and didn’t consider the possibility that the funds were being misappropriated.

What can we learn from this story? The need for specialized dental practice accounting. That’s correct. So to answer your question, Yes, a dentist does indeed need a specialized dental accountant.

The Need For A Dedicated CPA For Dentists

There are a fair number of reasons why a dentist needs a professional dental CPA. They can help you cut costs and grow your revenue with the help of financial housekeeping.

The job of a dental account is not just keeping track of your books or maintaining your accounts but also ensuring that you avail of all the schemes and programs run by the government to help small businesses. They also monitor that you’re always compliant with the policies. Tax preparation and optimization is another vital task of any professional dental CPA.

Several experienced CPAs in Columbia, Maryland, provide virtual CFO services aimed at helping dentists scale their practice with the help of budgeting, forecasting, planning, and strategic implementation of financial decisions. For ambitious dentists looking to expand and scale their dental practices, the guidance and mentorship of a virtual CFO are invaluable.

What Should You Consider When Choosing A Dental Accountant

Many small business owners and dentists tend to overlook some crucial elements when selecting a professional dental accountant for their business which can end up costing them a lot in the long run. Here are some factors you should consider when hiring an experienced dental CPA for your dentistry practice.

1. Range Of Services

There are CPAs who are generalists, and then there are CPAs who specialize in serving a particular segment of the industry. During your next meeting with your CPA, ask them about their range of services and how any additional services that they recommend may have an impact on your revenue. If your CPA offers only a few services, then it may be time to switch. Call our expert dental accountants today to schedule a free consultation.

Common Dental CPA Services Include –

  • Payroll Services
  • Compliance Assistance
  • Corporate And Personal Tax Management
  • Helping With Fundraising
  • Financial Advice And Planning
  • Strategic Mentorship And Guidance

2. Level Of Experience And Expertise In The Dental Accounting Field

CPAs serve a vast array of customers and clients across industries which is why you must look at the level of experience and expertise they bring to the table when looking for your next dental CPA.

An experienced dental accountant will help you optimize your tax position, claim necessary deductions, avail specific governmental programs, and save money. Dental accountants can often act as the jack of all trades and help you achieve your business goals quickly while ensuring accounting compliance.

3. Communication And Transparency

Accounting is a complex field, and many dental accountants don’t transparently disclose their activities and strategies. An accountant who isn’t openly communicating, guiding, and mentoring you may not be a good fit for your business. Therefore, it’s vital to look at the level of transparency and the quality of communication they offer.

4. Value For Money

Businesses function on two essential components, revenues, and costs. The value you derive from incurring the cost of hiring a professional dental CPA should be more than the cost itself for it to be a valuable investment.

Choosing the best option doesn’t mean choosing the cheapest one. It would help if you weighed the benefits of your investment with the costs. We at Sigma offer packages built for small dental practices to help them grow with ease. Contact us today to learn more about our offerings.

5. Clarity And Transparency Of Fee

For you to plan your dental expenses effectively, dental bookkeeping and accounting costs must be transparent and clear. You don’t want any unpleasant surprises down the line, do you? Ensure that the dental accountant you hire offers transparent pricing and is open to discussing all the costs involved in hiring them upfront before signing you on as a client.

6. Ability to Answer Complex Questions

You depend on your dental account for all kinds of things that have to do with your money and finances. Would you want to work with someone who isn’t able to answer complex questions you may have from time to time? No, you wouldn’t. As someone who has a background in accounting, you’d expect your dental CPA to answer any type of money-related question you may have openly and transparently.

The best people to work with are those who can always provide you with the correct answers whenever you have a question. They can only do that if they have a firm grasp of what they must do and what dental practices need from their accountants.

So, there we have it! We hope you understand why we believe that dentists need specialized dental accountants. Do you need help finding a good dental CPA? Not anymore! Get in touch with the best dental accountant in Maryland today and schedule a consultation.

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dental bookkeeping

7 Reasons A Dentist Should Hire A Professional Bookkeeper

Dental practices require extensive accounting and bookkeeping to keep the practice running smoothly. Many dentists ignore accounting, auditing, and bookkeeping for their dental practice until the end moment, which often results in chaos during the filing season. You may think, why do I need a professional bookkeeper when I can have my spouse, assistant, or a friend do it? Well, this blog will answer your question and many others. So let’s begin

What Do Dental Accountants And Bookkeepers Do?

The job of a professional bookkeeper may look simple, but it is often a lot more complex than it seems. A dental bookkeeper requires proper knowledge and understanding of the law, the tax code, and various accounting standards. A bookkeeper usually handles all the financial transitions for any dentists or medical practitioners, records your purchases, sales and expenses, develops systems, and much more.

Experienced bookkeepers like the team at Sigma also helps dental practices get a holistic snapshot and overview of their businesses’ finances, projected growth forecasts, and more. The value of data and information that you get access to by working with a professional dental bookkeeper is immeasurable, which is why we always recommend small businesses hire an experienced dental bookkeeper.

Top Reasons Why You Need A Professional Accountant For Dental Office Bookkeeping?

A novice may get the job done, but would they do it well? The answer to that can only be found when you hire a professional dental CPA for your dental practice.

Reason 1 – You Can Focus On Your Core Competency

You chose the noble profession of helping your patients get better. Why not focus on doing that while allowing professionals to help you manage your businesses’ finances? A professional dental bookkeeper will enable you to focus on your core competency by taking over all the hassles of dental taxation, bookkeeping, accounting, auditing, and more.

Reason 2 – You Are Always Aware Of Any Potential Cash Flow Issues

Running a small dental business or a medical practice is hectic. Some invoices or dues may slip your mind, which can end up putting you in a sticky situation. A professional dental bookkeeper is tasked with keeping track of all your income and expenses and can inform you of any potential cash flow problems they may predict coming and even make necessary provisions for it.

Reason 3 – The Tax Season Isn’t Chaotic Anymore For You

A professional virtual bookkeeper for dentists works with your accountant and tax consultant to ensure that all your tax liabilities are cared for while ensuring that you don’t pay a dime more than you owe. The taxes saved will far outweigh the costs of hiring a professional bookkeeper for your dental practice.

A bookkeeper will also provide you with a year-end financial statement which will help you plan the following year for your small business and prepare for any expansions based on your growth and forecasts.

Would you like to hire an experienced team for dental bookkeeping service at an affordable price? Look no further! Sigma is here to help you. Get in touch with one of our expert medical and dental CPAs today.

Reason 4 – You’re Always Prepared For An Audit

It is natural to apply for grants, loans, and programs offered by the government in the current environment. In the unfortunate scenario that your small business or dental practice is audited by the IRS or state, having up-to-date records of transitions will help you navigate the complex maze of compliances.

We at Sigma expect to see an uptick in the number of audits conducted by the government agencies for small businesses that have availed Covid-19 schemes and benefits. Is your dental practice prepared for an audit? Contact our CPA for dentists in Maryland to ensure your books are maintained to the tee, so you’re always prepared for an audit.

Reason 5 – You Can Secure Additional Funding And Finances Through Loans With Ease

If you’re ambitious and looking to expand your dental practice, having your books in place is vital. Investors and creditors such as banks often require detailed financial records, forecasts, analysis reports, and more which can be a chore. A professional dental bookkeeper ensures all your documents are updated at all times, which makes it extremely easy for you to secure funding.

If you’re a veteran and plan on retiring anytime soon, accurate financial records make it easy for you to sell your business when the time comes. Is it time to start planning your retirement? Get in touch with one of our expert dental CPAs from Maryland today!

Reason 6 – Improved Work-life Balance

Spending all your time working on your business means missing out on the finer things in life. Hiring a professional dental bookkeeper helps you free up your time to spend time with your family and friends while your business works for you and not the other way around.

Reason 7 – You Ensure Everything Is Paid On Time

Dentists always pay their debts! And paying them on time ensures that you don’t end up paying hefty fines or interests. A bookkeeper ensures bills are always paid on time to keep you debt-free.

We hope by now you understand the importance of hiring a dental bookkeeper for your dental business. These reasons make the benefits of hiring a professional CPA for dentist and dental accountant for your small business or dental practice abundantly clear. If you’re looking for the best dental accountants and dental CPA in the United States, then you can pause your search. You’ve found them! Contact our team of professionals at Sigma today to schedule a meeting with one of our expert dental CPA to learn how we can help you get top-notch accounting and bookkeeping services while keeping your costs on the down-low

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Three Things Dentalpreneurs Need To Create Generational Wealth

Three Things Dentalpreneurs Need To Create Generational Wealth

Building a great company comes down to three things: planning, execution, and accountability.

1 -Build a Solid Foundation to keep as much income as possible by getting the proper corporate and income structure, tax planning, accounting, payroll, and financial platform. Forward-thinking small business owners understand the importance of reliable reporting based on accurate data. Are you leveraging data to make sound business decisions?

2 – Grow Income & Wealth by cash flow management, following up on the “big picture” and “long-term vision of the practice, tapping on the growth opportunities in new markets, products, and new service lines. What are your cash leaks? Are you creating maximum cash or losing it down the drain? Do you understand the difference between profits and cash? For example, you could make $250K profit a year but when you look at the bank account and it shows only $10K. Where did the rest go?

3 – Create Wealth by ensuring that the risks are spread out through passive income investing, taking advantage of maxing out tax-advantaged retirement saving accounts, and funding 529s. Saving income into a qualified retirement plan starting at the youngest age possible can reward Dentalpreneur with the power of compounding growth over a lifetime. The longer recurring deposits can be invested in a diversified portfolio, particularly when savings are pretax and grow tax-deferred over decades, the greater the likelihood that this will be the most beneficial financial opportunity available. Do you have assets that produce alternative income so that if you stop working the income still comes in? Have you re-evaluated and devised a retirement plan to save by adding a generous match and allowing a profit share component to shelter money from Uncle Sam via tax savings?

Two major hurdles to building wealth are starting late and high debt!

There are THREE types of dental practice owners when it comes to creating wealth. Type 1 are those that are carefree -they sleep and don’t think about creating wealth and financial freedom until it is too late. Type 2 are those that are too busy working to work ON their business… This is where most dentists are. They work long hours generating income but are unable to use that income to grow and create wealth. Type 3 is where we all want to be. We want to go to sleep and when we wake up, we are richer than when we fell asleep the day before!

Jump on complimentary 30 minute consultation. Book your call today, click here

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dental practice accounting

Not Every Dental Firm Hires The Right Dental Accountant

Not every dental firm hires the right dental accountant. And if you hire the wrong accountant, not only will they make a mess of your finances -­ they’ll cause your business to literally bleed cash!

But how do you know when you have the wrong Dental CPA on your team? What red flags do you look for in an accountant that should make you run in the opposite direction?


What do you look for in the RIGHT Dental accountant?

1 -They Don’t Understand Your Business

Not all businesses are created equal, and the accounting methods and practices that work for one company will fall flat with another.
A skilled Dental CPA will design specialized reports that they can use just as you use a patient’s radiographs for evaluation, diagnosis, and treatment planning.

The Dental CPA analyzes such questions as:

  • How is the financial health of your practice?
  • What can you do now to minimize taxes next April?
  • Is the office using “best practices” based on the CPA’s knowledge of other successful offices?
  • Is the dentist working smart or just working hard to generate revenue?
  • Is the production appropriate for the number of personnel?
  • Is it time to add another dentist?

2 – They Do The Bare Minimum… And That’s About It

Some dental accountants want to get the job done with quickly and will cut corners, others just want to do the bare minimum.

When you hire a dental accountant that only does the bare minimum, you’re losing out on an opportunity to both save and make money -­ which will hurt your company’s profitability in the long run.

Part of the value of hiring a dental CPA is the expertise they bring to the table in finding innovative ways to save your business money. The right dental accounting firm can help you find grants and government funding that can decrease the amount of money you need to spend in order to conduct your business activities. They should also be able to find creative dental tax relief options that put more money back into your pocket come tax season.

3 – They Can’t Explain Your Financials In A Way That Makes Sense To You

As a dentalpreneur, you need to keep your finger on the pulse of what’s going on in your practice -­ including your financials. And it’s your accountant’s job to explain your financials and break them down in a way that makes sense to you -­ free of confusing statistics or impossible-­to-­understand financial jargon.

If your accountant gives you the run around whenever you ask about your finances and can’t explain the state of your financial affairs in a way that makes sense, chances are they’re draining your money.

If your dental accounting firm talks circles around financial issues and can’t explain the current financial state of your business, it’s time to find a new accountant.

4 – They Don’t Know The Meaning Of The Word “Organized”

With so many things to manage -­ like managing the books, filing your dental taxes, generating financial reports, and looking for money-­saving opportunities for your business -­ you need to work with a professional dental CPA who’s on point, organized, and doesn’t allow anything to go unnoticed. Because if your dental accountant is disorganized, you WILL lose money. When you work with a disorganized accountant, things can and do fall through the cracks. Important tax documents will be filed late (or not at all). Reports will be inaccurate. Your books will be balanced incorrectly.

All of which costs you money. If you want to protect your money -­ and your dental business -­ you need to work with a specialist dental accountants at the top of their game. The kind of accountant so organized, the thought of a single number out of place keeps them up at night!

Ask your accountant the systems they use to stay on top of their clients’ finances. An organized accountant will have highly structured systems for ensuring their client work is managed properly.

Is Your Current Accountant Bleeding Your Money? Don’t Worry Sigma Accountants Is Here To Help

Sigma Accountants is a full-­service Dental CPA firm that specializes in dental accounting, taxation, and financial services for dental practices. We offer the highest level of dental CPA services to our clients to take the stress out of financial management with dental accounting services tailored to your specific needs.

Our job is to make managing your dental finances as easy and simple as possible while offering creative solutions to put money in your pocket -­ not drain it.

When you work with us, you don’t have to worry about all those money-­murdering mistakes that bleed money from your business.

Our dental accounting firm offer:

• Financial reports that are easy to understand -­ even if finances aren’t your strong point (and if you don’t understand them, we’ll work with you until you do)
• A firm that’s dedicated to understanding your business -­ and overcoming the unique financial challenges your business faces in today’s market

We will work tirelessly to offer you the financial solutions you need to elevate your dental business and sleep easy at night, knowing the financials of your business are in the best possible hands.

Ready to stop working with dental CPA Firm that bleed your money and partner with the best team in the business? Get in touch with Sigma Accountants today for a no-­obligation consultation and learn more about how we can help take your dental business to the next level.

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dental accountants

Why A Real Dental CPA Is Better Than Any Software

As technology moves forward, the number of accounting softwares that claims to do it all keeps growing by the hour. You may think that software can replace a human dental CPA, but your assumption is unfortunately not valid. An experienced and reliable dental CPA in Maryland can never be replaced by algorithmically driven accounting softwares.

In today’s blog, we’re going to take a look at some of the fundamental reasons why any software can never beat a human CPA in Maryland. So, let’s take a look at some of the reasons that make a dental CPA invaluable to dentists.


Why Does Your Dental Practice Need A Specialized Dental CPA?

Before being a dentist, you’re a business owner who’s successfully running their business. A business owner has a whole host of duties and obligations, and as a dentist, you have even more responsibilities. Therefore, you need a dependable accounting firm in Maryland Columbia to help you organize your books and keep your business running smoothly.

An experienced dental CPA firm brings specialized expertise in helping dentists grow their practice, often exponentially. A dental CPA knows all the industry-specific deductions and subsidies you can claim to reduce your tax liability and increase the amount of money you take home.

A real dental CPA is also well aware of all the strategies you can use to plan your taxes effectively while you clear off any debt you or your business may owe. You’d be surprised to know that debt can be good under certain conditions.


How Can A Real Human Dental CPA Help Your Business?

A dental CPA firm understands your finances and uses them to illustrate opportunities and risks involved in your business. A Small Business Accountant from Columbia MD acts as an advisor and helps you grow your business. At the same time, you focus on providing the best healthcare services to your customers.

Are you looking to expand your business and improve the financial health of your business? Contact Sigma, the best accounting firm in Columbia, MD, specialists in dental practice accounting today.


Why Is A Real Dental CPA Better Than Any Software?


A Human Has Real-World Experience

We’ve developed excellent softwares like QuickBooks that can ease our lives. However, humans hold a significant edge over the softwares they have developed as any software lacks real-world experiences.

Experience helps a real dental CPA beat any robotic or computerized accountant with ease. These online bot softwares are meant to aid a real dental CPA, not replace them.

At Sigma, we use various softwares like LivePlan, Xero, and QuickBooks to aid our accounting and bookkeeping process. You can know more about us here.

QuickBooks is the leading cloud accounting software used across the country to enable collaborative accounting between dental practices and CPAs based in Maryland or across the country. This business management software allows CPAs to help businesses across the globe by providing growth-inducing insights.

We also help businesses that use Xero as their platform of choice. Xero allows businesses to take impactful actions that have a measurable impact on business performance.


A Human Understand Business

Businesses fundamentally function on two things, revenues and costs. Softwares can’t ascertain what type of expenditure is a long-term revenue-making expenditure and what’s an actual cost to your business.

The lack of human understanding is the biggest downfall of any accounting software, which is again why a real dental CPA firm is better than any software you can ever use for accounting and bookkeeping.


A Human CPA Brings Specialized Awareness And Insights To The Table

An experienced dental CPA accounting and tax services provider are well aware of the expenses that come along with running a dental practice. They bring specialized knowledge to the table and help you decide the most optimum equipment that your practice needs. They are well aware of the rapidly changing industry.

They are also cognizant of the common problems dentists and doctors may face in running their day-to-day practice. A dental accountant will stick by your side and help you navigate any complications that may come along the way.


A Human CPA Will Design Your Business According To Your Specific Requirements

A real CPA understands that not every business can be structured the same, and that’s why a reliable CPA in Maryland will design your business practice according to your individual needs and requirements.

If or when a partner has to join your practice, a CPA in Maryland will help you safeguard the interest of both parties.


A Human CPA Will Help You Plan For Your Retirement

In the pursuit of growing their dental practice, dentists often forget to plan appropriately for their future and retirement. An excellent dental CPA will understand your goals and work with you to ensure you achieve financial freedom and plan your retirement appropriately.


A Human CPA Is Emphatic

A human can understand situations and empathize with clients to help alleviate any sort of troublesome situations they may be in. A robot won’t stand by your side, but a human always will. Human empathy has no bounds.

By now, we’re confident that you understand why a real Dental CPA is the best choice for your business and why no software can ever replace a human CPA services provider.

Sigma is the leading tax accountant in Maryland that helps businesses with small business accounting services in Columbia, MD. If you’re looking for help with accounting, bookkeeping, and managing your business, please contact us today and learn how we can help your business grow.


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