Put Together An Amazing Dental Advisory Team

Business Advisory Team - Bright Dental CPAs

Not only should your advisory team be experts in their respective fields, they should understand the unique challenges dentistry professionals face every day and the complexities that are associated with dental practice ownership.

As a recent dental school graduate you probably have the next couple of years all mapped out. It’s likely that your first priority is to identify a community to establish your personal and professional roots. Next, you are probably going to want to put your skills to work. But what does that look like?

Read: Dentistry: It’s Not All White Coats and Drills

If you dream of establishing your own dental practice, your best bet is to start by compiling a team of professional advisors. Not only should your advisory team be experts in their respective fields, they should understand the unique challenges dentistry professionals face every day and the complexities that are associated with dental practice ownership.

Trust Your Gut

When you work with a service provider, essentially you are entering into a long-term relationship. Therefore, it’s not only important to identify those who are best suited on a professional level to make up your business team; you also need to consider whether their personalities sync with yours.

Choose to work with someone who not only has your best interest in mind, but who is someone can get along with personally – only you will know whether you will work well with a particular attorney, accountant, or banker. So while it’s always a good idea to ask for recommendations, make sure you get the final say when it comes to making up your team roster.

Do They Really Know What They’re Talking About

You wouldn’t hire an automobile mechanic to act as your Legal Counsel in court, so why would you allow a professional with little-to-no experience in the dental industry help manage your dental practice? It’s so important for up-and-coming dentists to work with professionals who have a solid track record of success in the industry you are pursuing. Working with industry specialists who are able to collaborate with each other – without hidden motives or agendas – will also help you identify the best solutions for any challenge you may face as a business owner as each advisor will be able to bring a unique perspective to the conversation, which will help you see the bigger picture.

When you are able to compile a team of professionals who are not only experts in their respective fields, but who can also offer solid experience in dentistry, you have the ingredients needed for success.

Email the Bright Dental CPAs at Rea & Associates at Rea & Associates to learn more.

By Alan Hill, CPA (Mentor)

 

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Is Your Dental Practice Prepared For An IT Disaster?

Natural disasters. Hardware meltdowns. New variants of viruses and malware. Unfortunately, we live in a day and age where anything can happen. It’s critical that your dental practice is on its toes, ready to tackle any potential disaster or crisis that may come your way. But is it? If your practice’s computer systems crashed tomorrow, how easy (or even possible) would it be for your practice to recover? Has your dental practice ever given thought to a disaster recovery (DR) plan? Do you have one of these plans?

Here are four reasons why your dental practice should create (if you don’t have one) a disaster recovery plan:

Four Reasons For A IT Disaster Recovery Plan

A Gartner report estimated that only 35 percent of small- to medium-sized businesses (SMBs) actually have a working and comprehensive DR plan. And from its research, Gartner also found that 40 percent of SMBs that manage their networks and Internet usage in-house will have their networks hacked, and more than 50 percent won’t know they were hacked. Pretty sobering statistics, right? There are many reasons why having a DR plan is a wise move.

  1. You can’t control when a disaster happens – it can happen at any time. Disasters can be natural or man-made – either way, you don’t have control over when it could happen. A DR plan will help you be prepared for anything at any time.
  2. A DR plan can help you save thousands, possibly even millions, of dollars in the event of a disaster. When a disaster strikes, it’s usually not a cheap fix. Depending on its severity, many businesses’ budgets are hit quite hard. And if this is an unexpected expense, it’s that much harder to make a complete recovery.
  3. You can mitigate your losses with a DR plan. Money isn’t the only thing at stake during a disaster. Don’t forget about the trust and confidence of your patients, employees, vendors – the list goes on. A DR plan can help you retain your critical audiences during a disaster.
  4. A DR plan can help you reduce confusion among your staff and audiences. When a disaster hits, imagine the confusion and uncertainty that comes with it. In some cases, it may seem like you have no control over the situation. A DR plan can help you have an organized approach to resolving the disaster.

Does your dental practice have a DR plan? If not, you should create one. Email Bright Dental CPAs for more information about what to include in your plan. If you already have one in place, first pat yourself on the back, and then review it to ensure that it reflects your practice’s current environment. Detailed and tested plans are imperative to the successful recovery and longevity of your dental practice.

Author: Dan Bialek, CPA (Mentor office)

 

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Ohio Dental Practices Eligible To Claim Portion of Ohio BWC Lawsuit Settlement

The Ohio Bureau of Workers’ Compensation recently announced that they have reached an agreement to settle a class action lawsuit filed against them in 2007. This means that your dental practice may be eligible to receive some of these dollars.

Details About The Ohio BWC Case

  • It was discovered that the state overcharged for workers’ compensation premiums between the years of 2001 and 2008. Thousands of businesses were affected.
  • $420 million has been set aside to pay claims, court costs, attorney fees and administrative costs.
  • The Ohio BWC has decided to settle the case rather than appeal to the state Supreme Court.
  • Payments to businesses will vary based on their manual classification, number of years that apply and the amount of premiums your practice, or business, paid during the years in question.
  • Eligible businesses are those that were not part of a group discounted rate from 2001 until 2008.
  • BWC Administrator Stephen Buehrer has made the following statement in response to the lawsuit:

“The policies that were at issue in this litigation in 2007 are not the same ones in place today, and we’re pleased that we have reached a settlement so we can move forward. Improvements have been made to how premiums and discounts are calculated, as well as to billing practices, and premiums are continuing to go down as a result.”

  • Buehrer later mentioned that the rebates of $1 billion that went out to businesses last year were a result of improved policies and procedures.

Who Can Make A Claim?

If your dental practice was not group rated at any point during the years of 2001 through 2008, did not  subscribe to the state workers’ compensation fund and reported payroll and paid premiums in a manual classification for which the non-group effective base rate was inflated, then you may be eligible to claim a portion of the settlement.

What Happens Next?

Eligible dental practices should have received a notice that indicates their status as class members. These employers should submit claims to the Cuyahoga County Court of Common Pleas no later than Sept. 22. Unfortunately, even though the deadline has been announced, we are still waiting on details from the state about how to apply.

Contact Our Dental Practice Professionals

Contact your Dental CPA at Rea & Associates to find out more about the BWC case and to learn whether you’re eligible to claim part of this settlement.

By Dan Bialek, CPA (Mentor office)

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Nine Questions to Ask When Purchasing a Dental Practice

If you’re at the point in your career when you are ready to purchase a dental practice and don’t know where to start, here are nine questions to ask yourself. The answers to these questions will greatly impact your future as you get ready to make the most important decision of your professional career.

  1. What is the prospective dental practice really worth? Just because a seller is asking for a certain price doesn’t mean that is the value of the practice. Contact a dental CPA right away to have a business valuation done. You could easily overpay for your dental practice without it.
  2. Can you afford the deal? Have a dental CPA calculate future cash flows based on the price of the practice, the financing terms, and your projected salary amongst other things.
  3. Is the seller willing to be a resource for you? They have probably been with the practice for a long time and would be happy to share information and advice with you. The seller also has a patient base they are leaving behind that they don’t want to let down. Make sure they are willing to help you get adjusted and start this new venture as a success.
  4. Are you going to purchase the building the practice is in or rent it out? The seller may own the building and not want to include that in the deal. If that’s the case, be sure you have a lease agreement in place so you can continue to use the building as a dental practice space.
  5. What are you going to do for financing? There are a lot of banks and financing options out there. Be sure to compare interest rates and terms to get the best option available to you. Also keep in mind that it’s important to use a bank that you are comfortable with and know you will be serviced properly. If you want to get really creative, consider asking the seller of his or her practice to finance the deal. The advantage to this option is that the seller will have a vested interest in your success.
  6. What will the purchasing terms be? Again, you have a lot of options here. Are you going to purchase 100 percent of the practice in the first year, or are you going to buy a smaller percentage each year over time. These important factors need to be negotiated. A dental CPA can walk you through your options and what the implications could be on you and your dental practice.
  7. Is the current dentist going to stay onboard?  As part of the deal, you want to define the length of time the former owner is going to stay on to help with transitioning. The last thing you want is a dentist that sells the practice and is out the door the next day never to be seen again.  However, you wouldn’t want a dentist who sells their practice and then sticks around too long.  Find a balance and agree to it. Your patients will be better off, and so will you.
  8. What is the alternative? If you don’t purchase a dental practice from an existing owner, what are your other options? Are there other practices for sale that you would consider? Would you consider starting a practice from scratch? Similarly, look at the seller’s options. Are you the only prospective buyer, or does he or she have other options? The more options you have, the more negotiating power you have.
  9. How is the deal going to be structured to maximize tax savings? How much of the sales price will be allocated toward goodwill and how much will be allocated toward assets? This question will greatly impact your tax liabilities, be sure to have a dental CPA assist you in the negotiations.

You have made the initial decision to purchase your own dental practice, now you have to decide which practice is right for you. Before saying yes, make sure you can answer these nine questions and are happy with your answers.

Contact Our Dental Practice Professionals 

Purchasing a dental practice is a big decision, don’t go at it alone. Contact Rea & Associates. Our team of bright dental CPAs can assist you throughout the process of purchasing a dental practice.

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Filing a Tax Extension is Not a Scary Thing

Filing Tax ExtensionAnother tax season is in the books. How did it go? It seems that tax season is a busy and stressful time for any dental practice. To help ease the burden of tax season have you thought about filing for a tax extension?

Many people think that filing a tax extension is a bad thing as it will increase their chances of an audit. That is actually not the case and filing an extension may actually be a good thing for you and your dental practice.

Top reasons why you should file for a tax extension:

  1. The time of the year is very busy for dental practices.
    Taxes are not the only thing keeping you busy during this time of the year. It is the holiday season. The tax filing season is similar to school vacations for both colleges and high school. There are patients trying to get into the office during breaks and your own family might be planning a getaway as some holidays can fall before April 15th. Filing for an extension can help you better focus on your dental practice and your own family.
  2. Both you and your accountant are not rushed.
    It seems that as April 15 gets closer, there is a ton of stress coming along with it. You need to gather things you forgot to get the accountant and you just wish you could take a few more days to look everything over. The old saying ‘making sure you get every deduction is sometimes only possible if you take your time and review everything before sending to your accountant. By filing an extension, some of that stress can be removed as you and your accountant won’t feel so rushed to get your taxes done. You can have additional time to really look over everything and make sure you’re getting the best refund possible. It may be to your advantage to work with your accountant after filing season so you can focus better on what you did for them.
  3. Make sure you have the money you need set aside for your retirement.
    The extension is an extension to file your return; it isn’t an extension to have the estimated amount of taxes paid in by April 15th.  Also, an extension is an extension to pay your retirement plan contribution, such as your profit sharing plan, defined benefit, or your SEP IRA.  (NOT Traditional IRAs or ROTH IRAs).  The extension gives you more time to file your retirement plan contribution while still deducting it for tax purposes in the prior year.

Contact Our Dental Practice Professionals 

Thinking about filing a tax extension next year, but still not sure if is the best approach for your dental practice? Contact Rea & Associates. Our team of bright dental CPAs can work with you to determine the best way and time to file your taxes.

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