A Brighter Way
  1. About
  2. Tax
  3. Accounting
  4. Practice Planning
  5. New Dentists
  6. Resources
  7. Blog

Are You Getting Reimbursed for your Automobile Expenses?

Do you find yourself running errands for your dental practice? Do you have more than one location and travel from office to office? Are you using your vehicle for more than just personal use? If you can answer yes to any of these questions, are you getting reimbursed for the automobile expenses related to your dental practice?

Calculating your Automobile Expenses

Figuring out how to be reimbursed for your automobile expenses related to your dental practice is very easy. There are two ways to calculate it:

1.)    The first method is the standard mileage rate.  This method can be used if you own or lease your car. You cannot have claimed a depreciation or Section 179 deduction on your car. For business purpose, the standard rate for 2014 is 56 cents per mile. There are different rates for using your vehicle for medical purposes, moving and for charitable programs.

If you lease your car and choose the standard mileage rate, you will have to continue using this method for the entire lease period. It’s also important to remember that if you choose this method for reimbursement, it has to be done the first year you use your car for business purposes.  In later years you can then choose to use the standard mileage rate or the second method of reimbursement — the actual expense.

2.)    The actual expense method allows a deduction for the actual cost of operating your vehicle.  The first step is to determine the business use percentage. To calculate the Actual Expense Method - Mileage Reimbursementpercentage of business use, calculate the total miles driven and the business miles driven.  The business miles over the total would be the business use percentage.

Total Miles = 5,000

Business Miles = 2,500

Business Percentage = (2,500/5,000)*100 = 50%

Once you know the business use percentage, you can them calculate your reimbursement. The expenses used in the calculation are gas, oil, repairs, tires, insurance, fees, licenses and depreciation or lease payments. If your business use percentage is 50 percent, then you can be reimbursed for 50 percent of the expenses.

Choosing the Right Reimbursement Method

How do you decide which option is right for you and your dental practice? It’s always practical to calculate the deduction both ways so you can take advantage of the larger deduction. From there you can determine which method works best for you. Regardless of what method you use, the law requires that you keep adequate records to support your expenses — this includes receipts. Make sure you are keeping good records to support all auto expenses.

Contact Our Dental Practice Professionals

Need help deciding which option is best for you and your dental practice, contact Rea & Associates. Our team of bright Dental CPAs can work with you to determine the best reimbursement method for your dental practice.

Related Articles:

Are You Missing Any Reimbursements?

Why Your Dental Practice Needs A Dental CPA

Estate Tax Increases Could Decay Your Future Plans

Managing Your Front Desk

Dentist Front Desk ManagementYour front desk has the ability to make one of the best impressions for your dental practice. From the way your dental patients are greeted, to how phone calls are handled, to the conversations that are heard by your patients as they wait to be seen, your front desk administration is making a lasting impact of your practice. Make sure it is the right one.

Every appointment starts and ends at the front desk, so what are you doing to ensure the experience is a positive one?  Here are five easy tips that you can start today with your team to provide your patients with the best experience possible at your dental practice.

  1. Service with a smile. A smile goes a long way and makes your patients feel welcomed. Even when talking on the phone with your patients, you sound happy when you are smiling.
  2. Is the front desk the social hub? It seems that office conversations find themselves around the front desk. However, that’s not the best place for them. Your patients in the waiting room may be heads down in a magazine, but they can still hear what is being said. Those conversations should happen elsewhere, away from patients.
  3. Keep the front desk clean and organized. The appearance of a clean front desk gives the impression that the dental practice is organized too. Patient information should also be guarded from anyone eyes.
  4. Be prepared for your patients. In the mornings, make sure your front office staff does all their morning duties before the doors open so the patients get full attention when they are coming in.
  5. Don’t make that last patient feel rushed. Take the extra time to treat the last patient just like the first. Staff turning off lights and rushing around the front desk makes the patient feel uncomfortable. Wait for those tasks to be completed after the patient is out the door.

Your front desk has the best opportunity to make a good impression of your dental practice.  You should take the time during the day and observe the front desk to make sure your patients are getting the impression they deserve. Need help deciding on how you can improvement the patient experience at your dental office? Contact Rea & Associates; our team of bright Dental CPAs can answer any questions you may have and provide suggestions on improving the patient experience.

Related Articles:

Are You Making the Right First Impression?

Why Your Dental Practice Needs Dental CPA

Ten Tips for Growing Your Dental Practice

Rea & Associates, Inc. | Bright Dental CPAs | 7201 Center St, Mentor, Ohio 44060-4858
phone + 440-266-0077