I’m not talking about Valentine’s Day or basketball’s March Madness right around the corner. I’m talking tax season. If you’re an independent business owner - particularly a dentist - you might be wringing your hands again, dreading another year of tax prep and wondering if this year will be different. I’ve worked in the business of dentistry for over 20+ years and I hear the same questions over and over . . .
“my cash flow seems ‘lumpy’ and I can’t put my finger on it. will I have another year-end tax surprise?”
“I feel like my practice is moving more quickly than I can keep up – my profit and loss is always a few months old. How can I make changes in the dental practice with revisionist history?”
“I feel like I’m on an island by myself, how can I get accounting partner that will give me pro-active advice?”
If you work with a traditional CPA, then you are required to fit into the systems and processes that they created for ALL kinds of business owners and hope it works out for you.
What if you worked with a CPA firm that was built from scratch for dentists?
Implementing smart technology in any business allows for efficiency. When you’re efficient in the accounting world, that equals speed. In the dental business model, speed transfers into better business awareness, profit, and activity that is forward-moving . . . not revisionist.
For example, examine the management of practice expenses. New technology is providing a lot of options for your receipt, statement, & invoice storage systems. Traditionally, a dental office would keep a receipt box or manila folder to gather expense receipts and deal with them month-end or a later date. Maybe you have an online storage system; however, it isn’t connected to your Quickbooks.
What if there was a way to keep digital copy attached to the transaction in Quickbooks and have all the details aggregated automatically?
I recommend a “digital document management system” at your fingertips. Use the Receipt Bank application on your phone. You and/or your Office Manager will simply take a picture of the business receipts wherever & whenever you incur a business expense. Artificial Intelligence will automatically categorize these transactions and remember them. Your scanned checks and card payments are connected as well. In the event of an audit, you have a perfect bank of receipts at your fingertips and you just snapped a picture and moved on. These expenses are automatically connected to your Quickbooks and the CPA team seamlessly reviews the downloads in real time.
Utilizing a modern expense-management system is only one step towards better efficiency – resulting in more timely and accurate bookkeeping. The benefit to your practice is a monthly reconciliation of your Profit and Loss. Now you can act upon opportunities and challenges revealed in your practice with your CPA. You can benefit from pro-active advice instead of feeling like your driving while looking in the rear-view mirror.
It’s that time of year again, will this one be different for you?
Put Crossroads Tax Advisors to the test and schedule an online Consultation to give your dental practice the “checkup” it deserves.
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