Huddleston Tax CPAs have dedicated dental cpas to help grow your practice. We understand your industry, the costs of tools and maintenance, as well as payroll and accounting. Taxes are one small part of what we offer, as we focus on proactive consulting to improve your bottom line.
As a dentist, there are few considerations to take: which business entity to operate under, which bookkeeping method to use, which accounting software will best suit your needs, and how to plan for tax deductions and tax credits. What follows is a brief overview of some of our dental CPA services.
Recommendations for Entity Selection
- Sole Proprietorship –as a sole proprietor, you’ll pay a self employment tax of 15.3%.
- LLC– this selection can be taxed either as a Sole Proprietorship or as an S Corp
- Partnership – when two or more owners share in losses and profits
- C Corporation – taxed at the Corporate level and on dividends
- S Corporation – avoids double taxation and saves on Self Employment Taxes
As a dental professional, the entity you select will depend on your specific circumstances. However, our dental CPAs tend to recommend PLLC with S Corp selection which offers the best of both worlds.
Dental Specific Deductions
Auto deductions are standard deduction for those working in dentistry. There are two means of claiming this deduction, the actual expense method and the standard mileage deduction.
With the actual expense method, you can deduct a portion of the actual expenses to operate your vehicle, such as oil changes, gas, repairs, tires, loan interest, etc. Of course, you need to be meticulous with how much of this is due to work.
Meanwhile the standard mileage deduction which can include travel expenses to meet with clients, trips to the bank or post office, etc.
Equipment Expenses Deductions
- Own – depreciated over a useful life
- Lease – deductible as incurred
These are some considerations that can affect a dentists tax dollars and our Dental CPAs are qualified to help you discern these.
Whether you’ve already started your dental practice or you haven’t yet started your dental practice, you’ll want to seek the counsel of a certified public accountant that can help you form a tax saving strategy tailored to you and the profession of dentistry. We can help with this. Just give us a call at 1-425-483-6600 or send us an email at firstname.lastname@example.org.
Frequently Asked Questions
Do I need a dental accountant?
Yes, specifically a CPA that specializes in the dental field. There’s the universal benefit of a CPA keeping you abreast of cashflow, forecasting, payroll and various growth opportunities, but it’s the specialization that really comes in handy. A CPA needs continued education to ensure they’re up to date on all tax regulations; a dental CPA makes sure your practice and you too are compliant with the state, county and business practices.
Beyond that, you’re able to grow your business as you’re not bogged down by managing payroll, tracking down expenses and receipts, which otherwise crushes January through April for most people.
What can dentists claim on their taxes?
Dental CPAs’ job is to save you money. This means ensuring you’re getting as many deductions as possible so you can become more profitable, net a loan easily, and ensure your financial security. Some of the deductions your dental practice could qualify for are:
- annual practice certification
- travel (between surgeries/hospitals)
- computers, office, and software equipment
- medical supplies
- indemnity insurance
- among others
Depending on your situation, you may be eligible for additional deductions, but these are the immediate deductions.
What do dental accountants do?
The short version is: everything that has to do with taxes. So payroll, bookkeeping, expenses, invoicing (usually with QuickBooks) all fall on your accountants. This enables you, the dental practice owner, to focus on the quality of care, growth of your business, best practices, and training your team.
Your accountant is your business’s advocate. If you want to purchase something, consult your CPA to see if it’s deductible. If you want to hire someone, find out what the upper limit is while still being profitable. If you’re considering a loan, work with your accountant to ensure your financial records are precise & up-to-date as they can negotiate for the best possible deal.