As we approach the deadline to file corporate tax returns, you’re probably gathering information to give to your dental CPA. Do you have a list that you always use to help remember what to send? Or do you submit a QuickBooks file and let your CPA deal with everything? Whatever the case may be, here are some tax preparation steps you should take before meeting with your dental CPA.
1) Value your investment. Before you send your documents to your tax preparer, consider the value you get from him or her. Are they asking questions? Are they engaged year-round? Are they responsive? Do they know the dental industry? If you answered “no” to any of those questions, you might want to consider looking elsewhere instead of getting stuck in the “same as last year” routine.
2) Fast in … fast out. The sooner you get the information to your dental CPA, the sooner you will get your return completed. This oftentimes means a tax refund could be in your pocket a lot sooner. Don’t let the IRS hold your money when you could be earning interest on it. Why wait? Get your information in now!
3) Categorize expenses properly in QuickBooks. Rather than just submitting a QuickBooks file and taking a back seat to everything, be sure you’re categorizing expenses properly, so your CPA can take full advantage of all available tax deductions. Did you know you can fully deduct meals and entertainment expenses that are used for the office? So the next time you have a staff meeting with lunch, be sure not to code this to the traditional meals and entertainment line item. By creating a new category in QuickBooks, your CPA will take the full deduction for the expense, which ultimately puts more money in your pocket.
4) The forgotten deductions can add up.
- Are you paying city taxes on corporate profit?
- Are you taking mileage or actual auto expense deductions?
- Do you manufacture your own crowns?
- Do you entertain referral sources or other business connections on the golf course or at a restaurant?
- Do you pay for any business expenses personally instead of through the corporate bank account?
If the answer was “yes” to any of those questions, consult with your tax advisor to make sure you are taking full advantage of the tax deductions available for these expenses.
5) Schedule a meeting with your dental CPA. Instead of getting your completed tax return in the mail and filing it away, try something different this year. Have your accountant walk you through the tax return and also discuss other business issues or concerns you may have. After all, your accountant should be one of your most trusted business advisors.
Contact Our Dental Practice Professionals
Tax season is upon us. Don’t wait until the last moment to file your corporate tax return. Contact Rea & Associates. Our team of bright dental CPAs can help you get your taxes filed smoothly and ensure you are not missing any deductions for your dental practice.