Starting your dental business uof md presentationPresentation Transcript
Presented to University of Maryland School of Dentistry Advanced General Dentistry ResidentsLarry S. Goldberg, DDS, CPA, CVA
Starting a practice? Associating? Military? Academics/research?
“Students who graduate…from public schools paid an average of $124,397 for their education, while those in private schools paid $223,788.”- ADANews, September 5, 2011
Key Metrics Core Expenses- ratios to watch Financing, borrowing money, niche lenders Paying down debt and profitability
Accountant Lawyer Insurance advisor Banker
Your accountant will help you with: Entityselection and tax implications Projections • Feasibility of business opportunities • Be wary of brokers selling practices Taxes- payroll, income, corporate Record Keeping Obtaining federal and state ID numbers
Your lawyer will help you with:Negotiating contracts • Leases • Buy/sell • Partnership • Employment
Your insurance advisor will help you with: Personal disability Life Malpractice Officeoverhead Workers’ compensation Health Long term care
Your banker will help you with: Financing Banking services
Sole Proprietor • Self-employment tax • No owner salary • Estimated taxes
S Corporation • Payroll taxes and withholding • Owner takes a salary • Distributions • Corporate protection
INTERNAL RECORDS INFORMATION FOR CPA Patient information QuickBooks files • Charges Self recorded or • Payments Use bookkeeper/CPA • Adjustments Payroll records • Treatment notes Large equipment purchases Human resources related Financing terms records
I have employees. What do I need toknow?? Paperwork and forms (W-4 and I-9) DIY or payroll service? Employment manual or handbook Employee benefits and retirement plans
Dental practices are very equipmentintensive. You can depreciate thisequipment over time.Current tax law allows accelerateddepreciation on equipment purchases.
WHAT IS AN EXPENSEWHAT IS DEPRECIABLE? ITEM? Dental equipment Dental supplies Computers Lab costs Cabinets Rent Furniture and fixtures Employee salaries Improvements Normal and reasonable cost incurred in a business
Asa service business a dental practice will use Cash Basis accounting for tax reporting
Retirement and financialplanning from the start.
Larry S. Goldberg, DDS, CPA, CVA410-356-1000Larry.email@example.com