Month: October 2023

A Dental Accountant Can Help You Retire Confidently | Dental Accountant Maryland

Stephen Covey made famous a saying that has stuck with us for years. He said, “Start with the end in mind.” There is no time like the present to start planning for your retirement. These words can mean many things to many different people, but to us, they mean that you should never be too young to start. 

The planning required for your eventual retirement as a dentist with your own practice is much more extensive than that of the average person. Your financial waste can be reduced with the help of a dental accountant, allowing you to retire sooner. 

Approximately how much are you saving?

When you meet with our dental accounting team, you will discuss your dental profit and loss, taxes, and long-term savings goals. Changing your investments during retirement may be beneficial to your savings as it may outpace inflation.

What is your exit strategy?

A written agreement that details who will buy you out when you retire would be helpful if you are a dental practice owner or partner. Determine whether you plan to retire outright or work part-time. Consider how taxes will impact your retirement savings. You should consider these and many other factors when planning your retirement. Our dental accounting firm can help you with the details of the transition.

When you retire, what do you plan to do?

Your priorities and living expenses may have to shift if you are considering starting a new venture, traveling more, or embracing a hobby. Considering how rapidly the economy is changing, it is worthwhile consulting experts to help you future-proof your lifestyle.

How long will you be retired?

Life expectancy has increased dramatically due to advances in modern medicine. Depending on your health and family history, you may want to plan as if you’ll live to be 100 years old and estimate your needs accordingly.For example, have you considered long-term care insurance?

Will there be any other changes to expenses?

Even though retirement may eliminate your commute, work wardrobe, and team lunches, it also means higher medical costs. Consider what changes to your budget you may experience during retirement.

You can start working through this list at any time. The majority of accountants recommend meeting with your advisor annually to discuss your progress and make any necessary adjustments. 

Dental accountants are similar to financial coaches. Among the many services accountants can offer, they can assist in finding the right pensions, properties, and business opportunities for you to invest in while you are still employed. They can also help you understand where your money is going as your income grows, ensuring you have a better financial future once you retire.

In addition to helping you divide up your assets after you retire, an accountant ensures that they don’t fall into the wrong hands.

You shouldn’t have to work during retirement. Get financial peace of mind by contacting a dental accountant today. Let’s talk.

Are You Making a Costly Mistake? | Dental Broker Baltimore

Dentists are experts at what they do. They maintain healthy teeth. Most of these dentists are less experienced in ensuring their books are kept accurately and reflect the financial health of their practice. Both of these skills are necessary to ensure longevity in your practice. In light of this, here are three common bookkeeping mistakes that could be costing you thousands of dollars and, ultimately, your business.

The Difference Between Cash Flow and Profit

It is not easy to understand financial reports. Inexperienced people can sometimes be confused by the complexity, leading to costly mistakes. It is common for dentists and in-house bookkeepers to mistake profit figures for cash. This is incorrect. Due to this mistake, dentists make purchases that incur overdraft fees, which can cost a lot of money for your practice. Profit is calculated using a profit and loss statement. However, cash flow is calculated using a cash flow equation and factoring in depreciation expenses, inventory, and accounts receivable.

Incorrectly recording transactions in the wrong period

It is another common mistake for practices to “close the books” at the end of each month. As your in-house bookkeeper reconciles accounts and prepares financial statements, transactions from previous periods can be entered incorrectly. If this mistake is not caught, all of your future reports, your tax documents, and your cash figures will be wrong. You can imagine how bad that is. The IRS can slap harsh penalties on individuals who misrepresent cash, regardless of whether it was an honest mistake.

Managing your payroll

Dental practices often think handling payroll is a simple task. However, many minor mistakes can easily lead to major problems and penalties. Payroll errors can be frustrating and costly for both employers and employees. A mistake in state tax deductions can result in a sizable tax deduction from an employee’s last paycheck of the year, and this deduction may coincide with the holiday season. Missed hours or incorrect pay rates can also inadvertently decrease an employee’s pay, leading to frustration and lasting resentment. It is these mistakes that cause employee-employer strain and negatively affect your employees. For the employer, incorrectly calculated payroll tax obligations can result in fines and penalties. Generally speaking, dentists aren’t experts in the complex world of government tax regulations.

Not using experienced dental accountants

Managing your practice’s finances yourself or hiring an inexperienced bookkeeper can be disastrous. An unreliable accounting system can lead to high tax bills, theft, cash mistakes, and more. 

A dental accountant can help you save time and money by implementing an efficient system. Having an accurate understanding of your practice’s finances at all times will give you peace of mind. For more information, please contact our office.