Dentists are vastly under-appreciated in the medical community. They serve an incredibly important need; good oral health is considered fundamental to all other forms of health.
For this reason, tax professionals like to give back to those that serve them so well. Tax preparation and accounting are needed for dentists just like in every other industry. Often, dentists are extraordinarily busy people that operate small, local clinics.
Consequently, dentists spend half of their time meeting and finding treatment for patients while also attempting to run a small business. Accounting and tax preparation are the two most critical avenues for dentists with a small business/practice to consider.
Thus, many find relief delegating many of their business’ financial duties to an outside service. Tax professionals can serve your accounting and tax prep needs. Contact Levy & Associates Tax Consultants at 800-TAX-LEVY for a free consultation.
Accounting for Dentists
There are over 200,000 dentists actively working in America, according to the American Dental Association (ADA). Moreover, a significant percentage of dentists (17%) are under the age of 35, which means they are just starting to learn about the business side of running a dental practice.
For this reason, many young dentists (as well as veterans) rely on accounting services. Accounting for dentists is a fantastic service considering that many health professionals want to deal with accounting and medical billing last on their list. Fittingly, a tax professional can take over many of these duties including:
- Implementing strategic cost-cutting measures.
- Examining noteworthy trends in profit and cash flow.
- Creating tax projections, compliance, and preparation services.
- Utilizing accounting software to study intricate data that improves efficiency and performance.
You should only hire a tax professional that combines accounting, tax prep, and proactive consulting solutions in one package. Thus, the accounting services should reduce administrative and bookkeeping burdens while also providing valuable data and other insights that can make your practice more efficient.
Dentist Accounting Software
Many dental practices rely on dentist accounting software for some or all its needs. Dentist accounting software is designed specifically for the industry, often by people that have previously worked in the dental field.
It gives you a slight edge over QuickBooks and Sage X3, which are fantastic accounting software programs, yet do not specifically cater to the dental industry. For this reason, you should focus on dentist accounting software that offers the following features:
- Dental Practice Accounting
- Practice Management Consulting
- Medical Billing
- Payroll Services
- Tax Preparation and Planning
- CFO/Controller Services
Some of the top dentist accounting software programs for 2021 include:
- Curve Dental
- MOGO Azure
- Dentrix Ascend
Do you prefer human interaction? Levy & Associates is one of the most reputable tax services in the country with a large team, and many of us specialize in accounting or tax preparation/consulting services. Learn more by visiting LevyTaxHelp.com.
Tax Prep for Dentists
Research indicates that taxpayers overpay by nearly a billion dollars each year on taxes because they fail to take advantage of credits, deductions, and income adjustments. Sadly, failing to take advantage of these tax credits and deductions forces hard-working individuals to pay more in taxes than they should.
Consequently, it is imperative that dentists take tax preparation very seriously. Anyone that operates their own small business needs to take advantage of every tax credit and deduction to lower the high operating costs.
Before you file taxes each year, make sure you have maximized your deductions and reviewed the return for common errors. The best tax prep for dentists begins by reviewing the following:
- State Sales Tax
- Student Loan Interest
- Out-of-Pocket Charitable Expenses
- Moving Expenses to First Job
- Job Hunting Costs
- Mortgage Refinancing Points
- Summer Child-Care Expenses
- Deductions on Home Equity Loans and Lines of Credit
- Lifetime Learning Credit
- Child-Care Credit
Levy & Associates offers tax consulting services. Contact us today to learn more about the different ways we will review your return.
Tax Deductions for Dentists
It is reported that 95% of dental professionals pay taxes that exceed what is required by law because they failed to take advantage of a credit or deduction. It has become even more confusing since major tax reform was introduced during the Trump administration that impacted just about every industry.
Nonetheless, the proper tax prep should help you avoid missing out on crucial tax deductions for dentists. There are some deductions and exemptions specific to dental professionals and the type of work they do to earn a living.
According to DenistryIQ.com, often dental professionals miss out on critical deductions by choosing the wrong business structure for their practice or failing to maximize medical benefits. Additionally, choosing the right retirement plan can impact your deductions right now.
Get Accounting & Tax Help Today!
Levy & Associates has decades of experience serving clients, many of which operate in the dental industry. Whether you run a private practice or need assistance with taxes, Levy & Associates can help!
We provide a variety of tax preparation, accounting, and tax resolution services. Contact us to learn more or call 800-TAX-LEVY.