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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Should I Hire My Spouse To Work In My Dental Practice?

Hiring Spouses - Dental CPA

As with most things, the answer with the question: Should I hire my spouse to work in my dental practice, isn’t an easy one to answer and everybody’s situation is different. What may be an optimal decision for one couple may bring about nightmarish consequences for another. Contact your Bright Dental CPA to learn more.

The dynamics that make up the different facets of your life are unique. The time you spend with family and friends is different than the time you spend with your clients and coworkers and the majority of people are quite happy to keep these two lives separate. But there are others who see the prospect of working together with their spouse as a personal and professional benefit – dental practice owners are no exception. In fact, I frequently field such questions from dental practice owners, all seeking more insight into the financial benefits (and drawbacks) of hiring their spouse.

Read: Debunking Common Personal Finance Myths For Dentists

As with most things, the answer with the question: “Should I hire my spouse to work in my dental practice,” isn’t an easy one to answer. Hopefully this list will provide you with some unbiased advice to help you come to a conclusion that makes sense for your unique situation.

The Pros

  • Ohio Small Business Tax Deduction – As long as you own at least 20 percent of the dental practice and the practice is located in Ohio, you can deduct your spouse’s wages as part of the Ohio Small Business Tax Deduction. Depending on how much they make, this could mean significant tax savings for you.
  • Retirement Savings – Your spouse’s wages will likely qualify them for your practice’s retirement plan, which will help grow your combined retirement nest egg.
  • Child Care Tax Credit – If you have children who are currently enrolled in day care or an eligible school program, you may be eligible to claim a tax credit. This credit is only available if both parents are working; and since you and your spouse are working under the same roof, the credit is up for grabs.
  • Social Security Savings – In addition to saving for retirement, your spouse will also be able to make payments into Social Security. In the short term they will see a reduction in their regular take-home pay, but as soon as they start claiming the benefit during retirement they will receive increased payments, which are based on the duration of their work history.
  • Travel Expense Ease – It is easier to deduct travel expenses if you are attending a seminar, as the IRS more readily allows deductible travel expenses of your spouse if they are an employee of the practice.
  • Peace of Mind – With your spouse working for your practice, you can avoid hiring an extra employee to do the same work. Any savings would benefit your personal bank account.

The Cons

  • Dramatic Dynamic – Just because your spouse is now a part of your practice’s team, doesn’t mean that drama will ensue – but it could. At least on a small scale, the addition of your spouse will cause the overall office dynamic to change. Whether that change is good, bad or just plain ugly depends a lot on your management style. If you hire your spouse to work for your practice, be sensitive to the feelings of the other team members while being mindful of any changes in office dynamics.
  • Separate But Equal – In order for this arrangement to work, you must be able to separate work issues from personal issues. We all have a bad day now and then, but if that bad day originated at home, you can’t carry it with you into the office. If you have any doubt whether you can effectively separate your home life from your work life, maybe hiring your spouse isn’t the right decision.
  • Soaring Social Security – Even though your spouse will be paying into Social Security, a good thing in the long term, you may not be happy to get the bill, a drawback in the short term. For example, if your wages as a dentist exceed the Social Security limit of $118,500 for 2015, paying your spouse instead of yourself will result in 6.2 percent extra taxes – or the Social Security portion of payroll taxes.

Everybody’s situation is different and what may be an optimal decision for one couple may bring about nightmarish consequences for another. Do not take this decision lightly. Email the Bright Dental CPAs at Rea & Associates to learn more.

By Alan Hill, CPA (Mentor office)

 

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