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.
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.