You are out of school, and it’s time to begin your dental career. Where will you start? Have you found a place to work? As multiple questions run through your head, let’s discuss some tips that will help you navigate through the “what’s next” phase so you can start in the right direction. Gain Experience…Read More→
Category: Dental CPA Blog
End of the Year Tips to Minimize Your 2016 Taxes
As many dentists know, the upcoming year end is always the time to consider minimizing your taxes. Here are a few tips from the CPAs at the Dental CPAs. Maximize your contributions to retirement plans. Contribute more to your 401k by the end of the year to reduce your taxable income and your tax bills. Consider using a…Read More→
Buying a Dental Practice and Wondering if Overhead was Adjusted Properly?
There’s a great thread on dentaltown.com about why buyers should NOT pay for potential and projections. Part of the discussion revolves around normalizing cash flow, particularly the overhead of the practice. This prompted me to write a blog post to help potential buyers evaluate a seller’s cash flow specifically with overhead. Over the past 25…Read More→
2015 PRACTICE FINANCIAL STATS COMMENTARY – WHAT’S CHANGED FROM FIVE YEARS AGO?
2015 PRACTICE FINANCIAL STATS COMMENTARY We’ve completed the process of compiling our dental practice financial statistics based upon 2014 & 2015 data and the results show very little change compared to five years ago. Remember, the US economy went through a downturn beginning in late 2008 which lasted probably through the majority of 2012. Therefore,…Read More→
What Percentage of the Purchase Price should be Allocated to Goodwill?
I see this question frequently, and occasionally I get asked this question from potential buyers. I see claims made by sellers’ advisors that goodwill should be at least 80% of the total purchase price or worse, they suggest that anything lower than 80% will draw the attention of the IRS. This is just plain FALSE!…Read More→
Selling Your Dental Practice in a Distress Situation
Definition of Stress– “Acute or extreme pain or anxiety, the state of extreme necessity or misfortune, to complete pain or force of circumstance.” A dental practice sale during a time of distress is never easy or pleasant. It is laced with many difficult but related issues, i.e., maintain staff, maintaining productivity, and maintaining practice…Read More→
Buyer of A/R Beware
About a year ago we were engaged to represent a buyer in their efforts to purchase a dental practice. The transaction went fairly smooth and it was one of those engagements where the client wanted to try & handle much of the transaction themselves…or at least as much as they felt comfortable with. As the…Read More→
Six Things To Consider When Selling Your Dental Practice
LOCATION When a potential buyer is looking to purchase a dental practice, the physical location is one of the first considerations. The dental practice location is comprised of not only the actual address but the demographics and population trends of the area. Your dental practice is strongly affected by changes in the area, whether it…Read More→
When Should I Begin Planning To Transition Out Of My Practice?
The first steps begin by recognizing and acknowledging a time frame of transitioning. This may be driven by desire or the need to retire. Often, dentists fear the transition process and view it as the end of their best years. Transitioning out of your dental practice is not the end, it’s the beginning. The ultimate…Read More→
Can Dental Student Loans be Paid off by a Business Account?
So I have heard that some dentists use paying an associate’s student loans off as incentive for joining a practice, just like a hospital does with new MDs. I own my practice and am wondering if I can use business funds to pay off my student loans in the same manner? OK. Before everyone thinks…Read More→