As you approach the end of the year, now is a good time to sit down with your partners and advisors to review your practice’s financial standing and prepare for the new year.
From your most current financial statements, you can compare fluctuations in your practice from year-to-year as well as provide a benchmark to compare with industry averages. These numbers really do tell the story of your practice. They tell how you choose to operate your practice, what is going well and what is not going so well.
As you look at your revenue stream, now is a good time to review the various insurance providers your practice accepts. How much and how quickly are they reimbursing you? How much extra work do they create? Are there other providers who should be considered? By including the practice manager in this portion of the meeting, you may receive valuable input to help determine which carriers remain. And since many participation agreements expire January 1, this decision is very timely.
All of the professionals in your practice are probably not together in one room very often, so now is the perfect time to discuss specific issues going on within the practice – from business procedures to routine office policies and problem employees to the potential hiring of additional staff members, just to name a few.
Other questions your group will want to address might include: What changes will take place within the practice in the coming year? Are rental or lease agreements expiring? Are large purchases or sales a potential? Are legislative or regulatory changes or even retirement or serious illness of key personnel on the horizon? Are you looking to expand by purchasing another practice or selling the practice? You’ll want to reach a consensus and forge a plan for the coming year.
As you look to your personal future, you should also review your will and estate plan to make sure the beneficiaries reflect any life changes, such as a divorce, death or changes in your relationships. All of your partners in the practice should do the same. Your tax return should also be reviewed and you should discuss what amount of taxes should be withheld to cover any bonuses incurred. Tax planning for the coming year should be considered, as well.
DENTAL PRACTICE TAX PLANNING
Your financial advisor can coordinate a complete year-end review with you and your partners and address all of these issues. If you have any questions or need to talk through your current tax situation, contact Rea & Associates. Our team of dedicated, knowledgeable Dental CPAs is ready to help.
This article was originally published in ODA Today, November 2008 issue.