Demand for dental treatments will always be high, so if you’re running a popular dental practice, it should be easy to make money, right? Well, not necessarily.
For profitability and a sustainably successful practice, you must manage your finances intelligently, and part of that should include tax planning and preparation. Although you don’t need to work with a tax accountant for dentists, the advantages of doing so can be monumental for any business.
Designed to help you master your taxes in such a way that you not only save money, but are able to navigate the complicated and continually evolving tax landscape with confidence and assuredness, expert tax advisory services can help you reduce your tax liabilities significantly, improve upon patient care, gain access to capital for reinvestments, and even boost your bottom line.
Let’s firstly look in a little more detail at the tax challenges dental practitioners face:
Although you can work with a regular accountant as a dental practice owner, the unique tax challenges that you will inevitably face, are best dealt with by an advisor with specialist experience in the dental industry.
Here are some of the tax issues dental practitioners must contend with:
- Depreciation of equipment and its impact on tax deductions
- Employee benefits and the complexities of payroll tax
- Regulatory compliance and the implications of this on tax reporting
By tackling these challenges with professional help, dentists and practice owners can design and work with tax strategies to address each of these specialized needs, making sure that taxes aren’t overpaid, and that any tax benefits that may be applicable, are taken full advantage of.
Making the most of deductions and credits
Maximizing their available deductions and credits is a primary goal of specialist tax advisory services, and this typically involves the following:
- Identifying eligible deductions that might include such things as utilities, office supplies and costs associated with continued learning
- Looking into credits that can help reduce tax liabilities significantly, such as those that apply for the hiring of employees in certain categories, or for making improvements that are energy-efficient
With detailed analysis of the expenses and operations involved with your dental practice, a dental tax advisor can find myriad ways to reduce your taxable income, which in turn, helps to boost profitability as a whole.
Why tax advisory services for dental practices go beyond yearly tax filing
A tax advisor wants to help you achieve financial health in the long-term, which is why they focus on strategic tax planning, and not merely filing once a year. Here’s a brief look at what’s included in strategic tax planning:
- Devising a tax strategy that is comprehensive and aligned with the growth goals of your practice
- Putting tax-efficient structures in place that aid plans for partnerships or expansion
Using an approach that looks to the future, dental practices can make the most of their existing tax situation, while also positioning themselves in an advantageous spot for their growth and overall success in the future.
To get the most out of dentist tax planning and the specialist advisory services they offer, you need to find a company who understand the complexities and challenges of the dental industry. They should also have a proven track record of reducing the tax burden for dental practices, and be able to offer a service that’s tailored to the exact needs of your practice.
Once you find the right tax advisor, you can start optimizing the financial health of your practice, and from there, the sky is the limit!