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dental practice accounting services

A Systematic Approach To Generational Wealth Creation

The idea of creating generational wealth can seem overwhelming, and achieving generations-spanning wealth for any family is no small feat. Fortunately, there are many strategies that can help break this process down into manageable chunks.

One such strategy is creating intergenerational wealth over time using a systematic approach to grow your dental practice using innovative and unconventional techniques. Creating a stable financial future for generations to come begins with setting achievable goals and understanding the value of intelligent investments and diversification.

If you’re a dentist or dental practice owner who needs help with building your financial legacy then read this article for valuable advice on building a long-term wealth system.

Our goal in this article is to provide an overview of the strategies you can use to create wealth for generations to come and discuss how to do so. Our blog will cover three key pillars: building a stable foundation, growing income, and usable cash, and creating long-term wealth.

Building A Stable Foundation

Financial planning is an integral part of every person’s life, regardless of age, income level, or family size. You can achieve your long-term and short-term goals by establishing a financial plan. Never wait too long to think about how to make the most of your money and manage it responsibly.

Setting clear financial goals, creating a business budget, and building good financial habits have many benefits. Some of these are –

  1. Ensures you make informed financial decisions by prioritizing your spending
  2. Enhances your financial security and stability
  3. Enhances the value of your business
  4. Contributes to your long-term financial goals, such as saving for retirement or buying a home
  5. Makes it easier to identify and reduce unnecessary expenditures
  6. Helps you manage and plan for unexpected financial events or emergencies
  7. Enables you to take control of your finances
  8. Helps you achieve your financial goals more quickly.

The key to success in business is having a proper structure. A well-designed, well-organized business foundation will help you succeed in the long run. The framework not only clarifies roles and responsibilities but also ensures efficient operations.

You can build a stable foundation with the help of a qualified dental CPA like Sigma. Our team helps dentists, like you, build a stable foundation for your business and personal finances while developing a financial strategy tailored to your specific needs and requirements.

Growing Your Income And Usable Cash

The best way to increase your income and usable cash is to make good financial decisions that will help you keep more of it in your pocket.

Creating a budget is the first step in tracking your spending and ensuring that it matches your income. By doing so, you will be able to identify areas in which you need to reduce spending or find additional income sources to suplement your expenses. Furthermore, tracking investments, savings, and other monetary activities can provide better insight into where funds are being spent and how they could be better utilized.

You can also look into increasing your income by optimizing your dental practice. An alternative way to increase your revenue is by getting specialized education and equipment for your practice or by spending on marketing and advertising.

Once you’ve successfully increased your income, the next step is to look into reducing your expenses. As they say, a penny saved is a penny earned. By increasing your income and lowering your costs, you’ll have more cash in hand, which you can deploy into investments or put aside into a savings account for rainy days.

You can also increase your income and cash flow without spending extra time or effort by investing in assets that generate passive income. Stocks, bonds, real estate, mutual funds, and other financial products provide passive income, which does not require active management. In addition to being low risk and offering some tax benefits, passive income often provides tax advantages as well.

If you want to learn more about alternative and passive investment options or learn more about growing your practice, then having an experienced dental accountant by your side is a good idea. Speak to Jigna, our principal CPA at Sigma, to learn more about how our dental practice accounting services can help you in growing your income.

Creating Long-Term Wealth

As a business owner, you’re also an investor. In order to succeed as an investor, you must have a long-term focus and diversify your investments. When you invest for the long-term, you won’t be subject to the fluctuations of short-term investing and can focus instead on making sustained profits over time.

There are various asset classes, like stocks, bonds, real estate, equipment, personnel, etc. that you can invest in. We recommend regularly reviewing your investment and adjust according to your current business needs and requirements.

A financial advisor that specializes in helping dentists and dental practices is a must if you want to create long-term wealth from your business. Please speak to our expert dental accountant today to understand what strategies would be best suitable for your dental practice.


Creating generational wealth is difficult, but it is not impossible. By following a systematic method of accumulating wealth, you can ensure the financial stability of your family for generations to come.

The creation and management of generational wealth cannot be taken for granted. Getting started requires a clear, comprehensive plan and attention to detail every step of the way. Sigma takes you through every step, giving you the best chance of succeeding.

Invest in the life you have always dreamed of by speaking with our expert team of dental financial consultants in Maryland.

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dental CPA services in Maryland

The Most Valuable Asset Of Any Dental Practice Is Its CPAs

Dentistry is a business, with dentists serving as CEOs. Dental practices should be treated as businesses, whether they are owned by a single dentist or in collaboration with other dentists.

Ownership of practice might be overwhelming for a dentist who hasn’t dealt with the “business side” of dentistry before. But by having a dental CPA, or certified public accountant by your side, you can ensure success for your dental practice. Their advice and support help dentists make informed financial decisions about their business and finances.

Throughout this blog post, we’ll examine why dental CPAs are so valuable in dental practices. So let’s dive in and explore the world of dental CPAs!

How Do Dental CPAs Add Value To Any Dental Practice

Owning a dental practice means you’ve already been to dental school, completed residency, and taken continuing education courses. If you followed this traditional path to earn your credentials and education, you might not have learned much about bookkeeping or accounting. But you can only run a successful business with proper accounting and bookkeeping systems in place.

So let’s look at how a dental CPA can add value to your business and free up your time so you can focus on the things that matter the most to you.

1. Dental CPAs Free Up Your Valuable Time By Taking Over The Mundane Administrative Tasks

The role of a dental CPA goes beyond that of an accountant. Dental CPAs work primarily for dentists. As a result, they possess specific knowledge that regular accountants do not. Dental CPAs use this specialized knowledge to build accounting systems that automate routine tasks and help your practice stay financially healthy.

A dental CPA has an innate understanding of tax trends, expenses, and ways to lower a practice’s tax burden. Furthermore, they know how to minimize the depreciation of dental equipment and which equipment will lead to the greatest return on investment.

By using this unique set of information and experience, they can free up your time by taking over these things, thus leaving you with more time to enjoy life.

2. Dental CPAs Set Your Business Up To Meet And Exceed The Industry Benchmarks

Most dental CPAs have a deep understanding of the financial and regulatory aspects of the dental industry and can help dental practices manage their finances in a way that meets and exceeds industry benchmarks.

A benchmark is a comparison of a company’s performance metrics with those of its competitors and with industry standards. Regular accountants aren’t too proficient at comparing their practice to comparable practices in other states, such as New York, Massachusetts, Washington DC, et al. but experienced Dental CPAs know all the nitty gritty and benchmark accordingly.

Dental CPAs offer various services that help dental practices run more efficiently and effectively, including tax planning and preparation, financial statement analysis, and practice optimization consulting. An experienced dental CPA will help you maximize revenue and profitability while reducing your costs and expenses. They will also assist you in making informed business decisions for the future.

Since dental accountants are well versed in understanding and benchmarking against the industry’s KPIs, they usually take into various factors such as patient volume, profit margins, and the percentage of patients who are currently on schedule when benchmarking against peers.

3. Dental CPAs Keep Your Practice Financially Healthy

A dental CPA is more than just a tax preparer and optimizer. They provide invaluable insights about the overall financial health of your business by using a holistic approach towards dental practice accounting.

An experienced dental CPA will be able to review the financial health of your business by auditing your financial statements and driving insights such as places where costs can be reduced, areas that can have a significant impact on profitability, investments that could give an outstanding RoI, and much more. They are also intimately familiar with fraud and can identify any oversights, inefficiencies, or leakages quickly.

When your dental CPA studies your practice’s financial standing within 3 to 4 months, they will make necessary changes to yield results that have an immediate and measurable impact on your practice’s success.

4. Dental CPAs Help You Build Personal Wealth While Developing And Growing Your Business

A dental accountant who specializes in dental finance can assist practitioners with retirement planning, estate planning, and wealth management. Planning these ensures that when you do eventually retire or sell your business, you’ll have a good pool of funds ready to utilize or deploy in your next venture.

At Sigma, one of our primary aims is to help you build generational wealth that keeps your family happy for years to come.

Final Thoughts

As you may have realized, a dental CPA is an invaluable asset for dental practice because of their specialized knowledge and experience in the dental industry.

By taking over mundane administrative tasks, they help your business meet and exceed industry benchmarks, enabling them to remain financially healthy. Start the journey towards generational wealth and financial freedom today by booking a consultation with Sigma.

Sigma’s dental CPA services in Maryland can help you plan for the future and make informed financial decisions.

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A Dental CPA Is Also A Creative Problem Solver

A Dental CPA Is Also A Creative Problem Solver

As a dentist, you know that running a successful practice involves more than just providing excellent dental care. You also have to be savvy about the business side of things, including dental practice accounting, bookkeeping, and taxes. Every business has its fair share of problems, issues, and blockers, and dentistry is no different. That’s where a dental CPA comes in. specialized dental CPAs are creative problem solvers that tend to have a different outlook toward common business problems. They look at things in a different light and find innovative solutions to the most pressing problems of your business. Although accounting softwares can help you solve some of these problems, it can’t replace a qualified person who understands the unique challenges faced by dental practices. In today’s article, let’s take a look at what makes a real dental CPA in Maryland a must for every dental practice in the USA.

A Story About The Importance Of Good CPAs And Accountants

If you’re old enough, you’ll remember Al Capone, the notorious kingpin of the underworld. Directly or indirectly, he committed countless crimes. But do you know what was ultimately the reason for his arrest and sentencing? If you guessed his activities as a gangster, you’re wrong. Al Capone, also known as Scarface, was charged with tax evasion. Yes, the notorious mob boss who operated out of Chicago for several years was arrested because he had a crappy team of accountants and CPAs (If he even had them in the first place). All It took to bring down this mammoth was a team of uncle sam’s finest accountants and bureaucrats. Even though this story has little to do with dentistry or dental accounting, it illustrates how important accountants are to every industry.

Top Traits Of Creative Problem Solvers

A dental accountant is a professional who has dedicated their life to dentistry. Accountants in the dental industry are more than just tax preparers. They understand dental businesses and can offer solutions that others might not be aware of. Here are some other traits dental CPAs have –

  • 1. They have the ability to re-define a problem and to look at it from a different perspective
  • 2. They have a can-do attitude and aren’t shy of using unconventional methods to do things
  • 3. They always have a system in place. A system that helps them break down the problem into smaller chunks and tackle them one by one.
  • 4. They are in tune with their intuition and know when to trust their gut and when to trust their mind.
  • 5. They have a larger view of the problem and try to solve the root cause instead of suggesting a bandaid fix.
  • 6. They carry all stakeholders with them through the solution instead of just giving a solution out.
  • 7. They don’t let their experience overpower the facts and data. Instead, they use their expertise to uncover information and reevaluate the problem.

How Creative Dental CPAs Solve Complex Business Problems

They Understand Dentistry And The Dental Business As A Whole

Hiring any accounting will help your business flourish and grow. However, when you hire a specialist dental CPA or dental accountant in Maryland, you bring in a partner that knows the business in and out. A dental CPA or a virtual CFO is someone who understands the problems your practice may face before you even realize you have those problems. They use the knowledge that they have accumulated over the years to solve complex business problems efficiently using various tools and techniques at their disposal. Because they understand your business, they can recommend an ideal solution for your specific problem that will suit your individual practice.

They Look At The Big Picture

Accounting as a profession has been full of analytics and analytical thinkers. While doctors and dentists, too, look at the finer things in detail, sometimes you need someone on the outside to provide a fresh perspective to view a problem. Dental CPAs are trained to think outside the box, which is how they are able to pinpoint the root cause of issues and offer immediate solutions and long-term solutions for all kinds of problems faced by a dental practice.

They Use Creativity With Logic To Create Magic

Many people see accountants as drab and serious people; that’s why it oftens comes as a surprise when they realize how creative an accountant can be. As a CPA, our work requires creative, out of the box solutions that are always compliant with the law. This unique approach towards things allows CPAs to innovate and come up with smart solutions to help any business.


In conclusion, a dental CPA is a creative problem solver who is able to provide support and advice on a variety of financial issues. They are an important part of the dental team and can help dental practices to run more efficiently and effectively. Are you looking to go beyond your financial goals and build generational wealth? Do you want to give the headache of accounting, auditing, bookkeeping, and compliance to a specialist? You’ve just hit the jackpot! Get in touch with Sigma today to understand how our services can guide you toward financial freedom by maximizing profits and minimizing taxes. Book a free CPA consultation in Maryland today.

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experienced Dental CPA in Maryland

Retire Confidently! – A Dentist’s Guide To Build Wealth And Retire Happy

You’re living a comfortable life, happy, fulfilled, and prosperous. You have everything you need, a growing dental practice, family support, and professional satisfaction. Now isn’t it just blissful! But have you ever wondered what will happen once you retire? Have you planned for your retirement? Will you be able to sustain your current lifestyle once you retire? Retirement planning, rather financial planning in general, is a prerequisite to having a wonderful retirement. Yet, so many dentists put off financial planning until the last minute, which destroys their hard earned wealth and keeps them panicking about their retirement. If you want to build generational wealth and retire comfortably, you need to start today. An experienced dental CPA firm like Sigma can put you on track and help you create the retirement life of your dreams.

What Do I Need To Retire Comfortably?

Stephen Covey, the author of the best-selling book The 7 Habits of Highly Effective People, says that you should always start with the end in mind. Simply put, if you need to retire at the age of 50, start planning for it from the day you join the American economy. A dentist requires intensive planning right from the get go to ensure all the profits of the practice, along with other income and expenses, are accounted for and managed appropriately. Start by planning these things.

Why Do Real Estate Investors And Landlords Need A Real Estate CPA?

Your retirement may eliminate your travel, expensive work wardrobe, and other team building expenses, but they may also lead to higher medical costs as you age. When you retire, you may experience changes to your budget. To account for these changes and to ensure you always have more than enough to cover your basic day-to-day expenses, you need to build a corpus of funds that are invested in safe asset classes which give out regular returns in tune with your post-retirement expenses. So determine how much money you might need when you retire and work backward from there. If you’re not sure what formulas and calculations to use, kindly speak to one of our experienced dental CPAs in Maryland who will be more than happy to help you.

How Much Are You Saving Regularly? Is It Enough To Build The Corpus Required For Your Expenses?

A dental practice is a cash intensive business. If mismanaged, it can suck in a lot of money. Our team audits your books, understands your profits and losses, cash flow, etc., and aligns them to your long term goals to ensure your business is structured in a way that will enable you to save regularly throughout your business’s life cycle. We then structure your finances and claim tax deductions in a way that outpaces inflation by the time you’re ready to use the money.

Do You Plan On Starting Something Once You Retire?

Many entrepreneurs can’t stay idle for a long duration. They prefer to have something that will keep them occupied. If you’re one of them, then you’ll need some seed capital for whatever new venture you would want to pursue. In such a case, our team ensures that we start planning for it right away and start putting small sums into the “Future Startup” account that enables energetic entrepreneurs to start up whenever they feel ready again. If traveling is something that you’d want to do once you’ve retired, then your finances can be planned in such a way that you’ll be able to afford as many international or domestic trips as you want.

Do You Have An Exit Strategy?

If you plan on eventually selling your practice before you retire, you must ensure there’s a property strategy put in place that will ensure that the burden of the tax liability doesn’t fall on your shoulders.   Many dentists don’t plan for their exit from the business and end up losing a lot of their hard-earned money towards taxes and other surprises. We’re here to ensure you aren’t caught off guard. Learn how you can value your dental practice for a profitable exit. Dental accountants and financial coaches have a lot of similarities. Both of them enable and empower you to invest in the right assets, grow your earnings and retain more of what you rightfully make. Speak to an experienced dental accounting firm in Maryland that has a track record of helping dentists create generational wealth today. Our Dental CPAs are happy to guide you through these dynamic business environments and take the burden of dental bookkeeping, dental accounting, financial planning, and tax management off your shoulders.

About Jigna M. Patel

Jigna possesses an extensive history of helping leaders in multiple different sectors and industries. She has made it her mission to help small businesses rapidly accelerate their growth by providing financial expertise and advice. Her experience, education, and expertise allow businesses to grow exponentially. Book an appointment with an experienced Dental CPA in Maryland today.

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Dental Tax

Don’t Overlook These Tax Deductions To Take Home What You Deserve

A dentist is one of the best professionals you can turn to if you need quality dental care. The IRS allows dentists to deduct a variety of expenses on their tax returns, including research and development, advertising, and professional dues. But are there any other tax deductions that dentists may be overlooking?

Yes, there are plenty of tax deductions that most dentists overlook. These deductions can help offset your income and take home what you make. In this article, we’ll take a look at some of the most common dental deductions that dentists may be eligible for.

Tax Deductions That Help You Keep What You Rightfully Make

There are a number of tax deductions a citizen can claim based on specific criteria. Some of these deductions apply only to dentists, while some others are universal. If you’re a dentist who’s looking to save your tax, speak to a professional dental accountant like Sigma to understand how our approach can help you save tax.

Let’s take a look at some unknown deductions you can claim.

1. Expenses Associated With Moving For Your First Job

Did you move more than 50 miles from your home for your first job? Firstly, congratulations on your new job, and secondly, did you know you can write off these expenses? All you’ll need are receipts to prove the expenses, and you can save yourself a chunk of change.

2. Donations Made Out Of Pocket

If you do any sort of volunteering work or charitable work, you can claim these deductions (Up to 60% of your gross income) under the new tax regime. The deductions include travel expenses, lodging, meals, sponsoring sports teams, and much more.

3. The Cost Of Job-Hunting

Job hunting is expensive and can take a toll on your pocket. If you’re moving to a new practice, you can claim the expenses associated with job hunting, such as costs relating to resume preparation, employment agencies, air travel, taxis, printing costs, and much more. You are eligible for this deduction even if you didn’t get the job.

Do note that you can get a deduction only if your miscellaneous itemized expenses exceed 2 percent of your adjusted gross income.

4. The Cost Of Child Care During The Summer

Many parents don’t know about this deduction, but if you have children, then any expenses related to child care during the summer can be claimed as a deductible.

5. Continuing Education Credit

If you’ve been considering learning something new to improve your dental business, like a course on Marketing or Finance, there’s excellent news for you. You can claim a 20% credit towards your tuition paid up to a maximum of $2000.

You can also claim this tax credit if you have a spouse or a dependent and you pay for their education. The only caveat is that the institute should be on the list of eligible institutes that qualify for this tax credit.

6. Tax Credit For Expenses On Child Care

For every child of yours under the age of 17, you can claim $2000. However, if you have 0 tax liability (Almost impossible), you can still claim $1400 towards child care.

7. State Sales Tax

As taxpayers, you are eligible to deduct state income or sales tax from your total taxable income. This is a relatively new deduction, and that’s why a lot of CPAs and tax consultants aren’t aware of it.

On the other hand, a professional dental CPA can help you avail of this tax credit and take home what you truly deserve. All we need to help you is your receipts, and we will take care of the rest.

8. Lost Deduction From Prior Years

If you weren’t aware of these deductions or didn’t claim some of these in the previous years, there’s still scope for you to recoup these. Many deductions, if not used in the filing year, can be carried over to the next year and claimed.

Speak to a professional dental tax consultant to understand how you can claim these for yourself.

Frequently Asked Questions

A medical and dental expenses tax credit is a credit that helps you reduce the Federal tax owed by you. Medical expenses like the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments can be claimed to get an additional tax credit.

Any taxpayer who itemizes deductions on your tax return and has spent any amount of money towards medical or dental wellbeing and has the receipts to back it up is eligible for this tax credit.

There’s no straightforward answer to these questions, and it completely depends on how your CPA files your taxes. For example, an experienced CPA might be able to help you deduct your medical and dental expenses if you qualify. This handy questionnaire by the IRS on tax deductions can also help you determine if you can claim these expenses.

A professional CPA can help you apply for these credits and claim them. Speak to Sigma today to learn how we can assist you in optimizing your tax returns.

We hope this answers all your questions and doubts. If you’re looking for a professional dental accountant in Maryland, then please feel free to drop by our office for a free consultation and guidance session. We’re eager to meet you!

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EBITDA For A Dental Practice

The Best Way To Determining The Value Of Your Dental Practice

Are you ready to retire and spend time with your family? Are you looking for the best way to determine the fair market value of a dental practice in the USA? Today’s article will cover the best way to determine the value of your dental practice and how you can boost your valuation for your practice.

What Is The Most Commonly Used Method To Determine The Value Of A Dental Practice?

EBITDA or Earnings Before Interest, Tax, Depreciation, and Amortization is typically used when valuing dental practices.

The EBITDA valuation approach used by many investors is a hybrid approach combining market value and income. Investors use it to calculate how much cash is going to be available before deducting debt and capital expenditures.

Why Does EBITDA Matter?

Investors prefer the EBITDA method of valuation because it eliminates fluctuating factors such as taxes and non-cash expenses such as depreciation.

Boosting your EBITDA essentially boosts the valuation of your dental practice. An experienced dental accountant, like Sigma, can help you optimize your business to improve your EBITDA and other ratios.

EBITDA Calculation for Dental Practices

Calculating EBITDA is reasonably straightforward. You’ll need your balance sheet or income statements, preferably for the last 3 or 5 years.

Then, find your total revenue for the year. Subtract all your operating expenses leaving depreciation, amortization, interest, or taxes aside. This will give you your EBITDA

You can chart your EBITDA growth by figuring out your yearly EBITDA for the last 5 years and comparing how it grew year over year.

What You’ll Need For An EBITDA Analysis

  • Profit And Loss Statement, Ideally For The Last 3 Or 5 Years
  • Revenue Statement, Ideally For The Last 3 Or 5 Years
  • Current Balance Sheet
  • Owner Salary, Distributions, Benefits, Insurance, Perks Etc.

If all of this seems complex and tiresome, worry not. We’re here to help. Please speak to our team of expert Dental CPAs, who are always ready to help your dental practice grow with the help of dental bookkeeping and dental accounting services

EBITDA Multiples In America

Investors generally invest or buy a business at a fixed EBITDA multiple. We’ve been observing investments in technology companies at extremely high EBITDA, sometimes even 50x as well.

The EBITDA in the dental industry is far more conservative. Generally, an independent dental practice gets valued at 6x to 8x EBITDA. But, on the other hand, if it’s a chain of dental practices or a group, the EBITDA is usually higher, often 10x your current EBITDA.

Dental Practice Valuation: The Importance Of Competitive Pricing

Dental practices that are profitable are in high demand, and investors are ready to pay a premium for a well-structured, properly managed clinic. However, it’s essential to value your practice fairly if you want to turn over your business quickly.

Jacking up the EBITDA number isn’t that hard. However, it can backfire in the long run. Specialists like the dental CPA team at Sigma help you value your practice fairly while keeping the overall market trend in mind. A specialist dental accountant ensures you always get what you deserve while providing the optimum value to the buying party.

Ways To Improve EBITDA For A Dental Practice

1. Pricing At A Constant Level

Discounting is a sure-shot way of negatively impacting your EBITDA. Therefore, it is generally recommended to keep your pricing constant. Yes, running offers and discounts can be beneficial for the practice, but it positions your business as the place to be for bargain hunters, and we definitely don’t want to do that, do we?

2. Effective Management of Travel & Entertainment Budgets

Your travel and entertainment expenses are an investment into your business. Treat them like it. Any expenses done to improve your business should result in one of two things, an increase in revenue or a reduction in costs. However, most accountants tend to see these just as pure costs. Therefore, it’s crucial to optimize these budgets to ensure we reap the maximum benefit out of the investment.

Uncertain about how you can manage these effectively? Speak to a professional dental CPA in Maryland who can help you get the benefits you truly deserve.

Want To Learn More About Valuing Your Dental Practice?

Our team at Sigma works day and night to ensure we offer the best dental accounting services to dentists in the Tristate area. If you’ve been confused about your business’s accounting or want to plan for your retirement, now is the best time to speak to a dental CPA.

Please feel free to call us or drop by our office for a free consultation to understand how we can bring value to your dental practice and free up your time for the finer things in life. We’re always here for you!

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dental Practice owner tips

Tips To Deal With Burnout For Dental Practice Owners

Being a dentist is difficult. Being a dentist who owns their dental practice is even more challenging. Burnouts are very common in the dental industry, both among business owners and team members. If you’re a dental practice owner, who’s burnt out and looking for some help, then read on. We’ll help you deal with your burnout and give you ideas on how you can free up your time while delegating administrative tasks to a professional dental accountant.

Tip #1 – Identify The Signs And Root Cause Of Your Burnout

Being bored, tired, or having trouble concentrating are all symptoms that indicate you are starting to burn out. If you ever find yourself or your team feeling demotivated or lacking enthusiasm, you know you’re on the path to burnout. If you don’t act the moment you notice these signs, you may land in deep trouble. Studies show that burnt-out business owners lose 60% of their recurring revenue within 2 years of burnout. If you’re able to identify the root cause of your condition, you can fix it before things go south. In our experience, usually, it’s the business administration part that takes a toll on dentists. Are you troubled by it as well? Allow us to help. We offer comprehensive dental accounting and dental bookkeeping services at Sigma that help dentists free up their time for more important things in life, like spending time with the family. Please speak to us today to understand how we can help you.

Tip #2 – Identify Problems To Address

Managing a dental practice is difficult enough already, and the recent pandemic has exacerbated the difficulties even more. Many dentists find themselves exasperated by various challenges like lack of cash flow, a low number of loyal repeat patients, etc. If your dental practice is facing these issues, you need professional help. Please speak to a specialist Dental CPA today to learn how you can fix these internal issues and get your dental practice back to its former glory.

Tip #3 – Identify New Things To Keep You Interested

A routine of repetition is the cause of burnout in multiple cases. Humans need novelty to keep them interested and engaged, and as dentists, novelty in practice is hard to come by. So, what’s the solution? Learning new things or skills, attending conferences, even expanding your business practice with the help of loans and borrowings (It’s not always bad! read here) can all rekindle your spark in you. Consider signing up with your local business and networking club, which is another excellent way to meet and learn from like-minded people.

The Impact Of COVID On Dental Practices

Covid lockdowns have been devastating for so many dental business owners. It has changed the way we do business. New and additional challenges that dental practices now face can also lead to burnout. Here are some things you can do to ensure your business tides over this situation unscathed.

  • Developing a pre-appointment screening process
  • Allowing plenty of time between patients for cleaning and decontamination
  • Developing and implementing staff protection strategies
  • Ensuring that anyone entering the facility is identified
  • Preventing a large number of patients from being in the waiting room simultaneously
  • Using tele-dental technologies, such as real-time video consultations

Save Time And Grow Your Revenues With Professional Help

Dental bookkeeping and dental practice accounting are best left to professional dental CPAs. Why? It’s simple, by offloading these tasks from your time, you can regain control of your focus and spend it on things that matter the most, family and growing your business. As dentists, you’re experts at caring for your patients. So why not let accounting experts help you save your time? Speak to us today to learn how our Dental CFO services can help you grow your practice on autopilot while professionals handle your day to day administrative duties.

Our Dental Accounting Services Include

  • Dental Practice Bookkeeping
  • Outsourced Accounting And Bookkeeping
  • Preparation Of Monthly Financial Statements
  • Tax Preparation
  • Tax Planning Strategies
  • Cash Flow Analysis And Management
  • Forecasting And Budgeting
  • Quickbooks™ Set-Up And Support
  • Help With Starting A New Practice

Wrapping It Up

Everyone will suffer from burnout at some point within their careers. Identifying early signs of burnout is the most effective way of getting back on track. We do much more than balance our clients’ books and prepare their dental tax returns at Sigma. We take care of all your bookkeeping and accounting needs for you so that you can focus on your work. In addition, our company has provided outsourced CFO and Controller services to numerous dentists from the tri-state area and across the country, providing all aspects of financial auditing and reporting, from bookkeeping to strategic consulting.

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Dental Practice Accounting Services

As A Dentist, These Things Should Scare You!

Imagine this. You’re on track to have a dental practice with an ARR of $3 million. You’re casually going through the records and notice quite a few discrepancies, but you can’t make sense of things. Unfortunately, this happens far too often in the industry, scaring so many growing dental practice owners. In this blog, we’ll take a look at a few things that should scare you as a dentist and serve as a wake-up call to bring your business in line with industry practices.

Fear #1 – Lack Of Financial Direction

You’ve been building your business slowly but steadily over the years, but it still feels like running on a treadmill. So even though you’re putting in a lot of effort, you seem to be going nowhere.

Yes, the Cash is flowing in, but you’re nowhere close to your financial goals and on your way to building real wealth. So how can you remedy this, you ask? The answer is quite simple by working with a certified dental CPA.

You might think, I have a CPA already. So why do I need to change? The honest answer to that is – you don’t. However, a professional dental CPA brings loads of industry experience that helps you plan your personal finances, your business’s growth, and your family’s future.

The strategies and techniques employed by a professional dental CPA differ a lot from those used by regular CPAs who serve various clients across industries. Please speak to a Dental CPA in Maryland today to understand how they can help you get a clear financial direction for you and your business.

Fear #2 – Lack Of Benchmarking And Competitor Analysis

In your bubble, you might be doing phenomenally well. However, you may be nowhere close to achieving your full potential as a business owner in the real world. This is where benchmarking comes into play.

A dental CPA can put systems and processes in place that constantly monitor your revenue and expenses to ensure that you’re meeting and even performing better than the industry benchmark as a business owner. This benchmarking not only allows you to reach your financial goals quickly and systematically but also enables you to realize how much money you might be leaving on the table.

We’re here to help you understand your current standing and guide you on the right path to choose moving forward. Book a consultation with us today. The coffee is on us!

Fear #3 – Embezzlement

So many dentists think that no one on their team would embezzle money from them. After all, you trust them right. Maybe it’s a family member or an employee who’s been working with you for years. Unfortunately, embezzlement is a much bigger problem in the industry than you might imagine.

A business making about $1.2 million a year could easily have $50-70 thousand embezzled without even anyone realizing that the money is gone.

Signs Of Embezzlement From A Dental Office

  • A newfound wealth is flaunted by an employee.
  • The personality of an employee changes drastically.
  • An employee always arrives first and leaves last.
  • One of the employees is always taking work home often.
  • An employee is always working overtime without good cause.
  • An employee is very resistant to change and often controls things on a micro-level
  • A worker never takes any vacations, sick days, or personal days

How To Prevent Embezzlement?

As a rule, always check your finances frequently and have a second set of eyes go through them to ensure they don’t find any discrepancies you might have missed. Having a professional dental accounting firm or a dental accountant help you with quarterly audits is another excellent way of ensuring your dental practice doesn’t bleed money.

Fear #4 – Lack Of Take-Home Profits

Profit is the reward we get as entrepreneurs for the work we put in towards growing the equity in our business. Your business might have a phenomenal cash flow, but are you taking home the profits you deserve?

We often see dentists becoming employees of their own business and taking only a paltry salary instead of the dividends they deserve. Planning your profit distributions is crucial to ensure you take home what you deserve every month consistently.

Speak to a dental accountant in Maryland to understand how you can structure your business in a way that allows you to take home what you deserve.

Fear #5 – The Big Bad Tax Shock

You had a fantastic year revenue-wise, but now comes the time to pay up. Uncle Sam wants to take his fair share, but are you prepared to pay up? When running a smaller practice, many dentists don’t put aside money to pay the taxes,, which can lead to a huge tax surprise at the end of the financial year.

You can overcome this shock by planning your taxes and implementing tax-saving strategies that ensure you’re always prepared when the tax season comes. If you’re not sure how you can plan your taxes, allow us to help. We’ve helped multiple small and mid-sized dental practices plan their taxes optimally.

We hope this article serves as a guide to you and acts as the wakeup call you need to audit your finances. Speak to us today about our dental practice accounting services and how we’re able to help small, medium, and large dental practice owners save money and time.

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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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