When dentists start their first practice, they often think about the patient’s needs, how they will equip their practice, and what the office will look like; no medical professional receives guidance on financial planning. This is where a dental CPA can be invaluable to a dentist. It is not that a normal accountant cannot help a dentist, but a dental CPA caters to the different needs and difficulties dentists face.
Whether it is understanding the costs of opening a practice, tax strategies, or advising on staffing needs, a dental CPA understands the uniqueness of a dental practice, and what steps can be taken to ensure the most profitable clinic. For example, a dental CPA may guide you on how to use your practice structure and register your incorporation; is it better to register your incorporation from day one or setup as a sole proprietor? Each has different tax benefits, and a dental CPA would set you in the right direction to save you thousands of dollars over the life of your practice.
The process starts with bookkeeping. Bookkeeping is the legwork that allows your CPA to translate your financial records into meaningful statistics, such as break-even point, cash flow forecasts, and payment strategy on equipment loans. New practices typically struggle with high costs at start-up, and knowing your numbers is key.
A dental CPA with experience in the field, will not only assist in bookkeeping, but will also help you stay in good stead with CRA regulations. From payroll taxes to HST filings, they help clinics avoid missteps that could trigger audits. Your CPA is wise to industry-specific expenses, such as continuing education, supplies, and practice management software that are available as deductions.
For new businesses, the greatest advantage of engaging a dental CPA is strategic planning. They have the ability to forecast growth of revenue streams, measure performance against an industry standard, and suggest financial strategies for growth and expansion. If you’re contemplating hiring your first associate dentist or opening your second location, your CPA can develop financial models that will help as you make your decisions.
Ultimately, a dental CPA provides more than tax filing — they deliver peace of mind. By combining specialized bookkeeping with advanced financial planning, they allow you to focus on dentistry while ensuring your practice grows on a strong financial foundation.
