How do you know when it is absolutely time to hire a dental accountant? Occasionally there are certain tasks that you are able to do on your own, but these tasks may be very time consuming. When you are busy with clinical work, it is easy to overlook certain things or make financial mistakes. Here are a few signs that confirm you need an accountant:
- You earn over $200,000 per year– Your odds of being audited once you start earning over $200,000 a year increase to nearly 4%. While this may not seem like a large number, it’s actually an increase of over 300%. Having your financials in order in case this does occur is vitally important once you become a high-earner.
- You are a business owner or are self-employed– Utilizing the services of an accounting professional is vitally important for any business owner or entrepreneur. Tax laws change annually. The current US tax code has over 7 million words in it. Making sure that all of your deductions are included, your assets are depreciating properly, and that you are maximizing your tax savings will wind up saving you money in the long run.
- You are setting money aside for others– When putting money aside for your children, grandchildren, or anyone you want to take care of, it’s very important to use a financial professional to decide which vehicles to use for tax-deferred or tax-free savings. This includes college savings plans or trusts.
- You are incurring large capital gains tax– The key to success in paying big capital gains tax is paying at long-term rates. An accountant can help you with a Qualified Small Business Tax Credit, can help minimize your taxes, and can help you set long-term payment goals.
- You are experiencing rapid growth in your business– Not only is keeping your finances up-to-date time consuming, it’s also complicated. When you’re experiencing rapid growth, it’s time to call in an accounting professional. Having more customers, team members, and vendors is going to require more paperwork and number crunching and can rapidly become impossible for you to keep up with.