Running a dental practice requires more than patient care—it requires clean books, payroll accuracy, and tax planning. Below are 7 mistakes that cost dentists the most, plus practical ways to avoid them. Pair your practice with our Bookkeeping Services, Business Consulting, and Tax Preparation.
1) Mixing business and personal accounts
Co-mingling leads to tax risk. Dentists should keep a dedicated business checking account and reconcile monthly to maintain clean bookkeeping records and ensure financial accuracy.
2) Poor cash flow tracking
Missed inflows/outflows strain payroll and vendor payments. We set up cash-flow dashboards and forecasts for dental offices.
3) Inaccurate payroll for staff & associates
Misclassified hygienists or late payroll taxes = penalties. We align payroll schedules with tax deadlines and 1099 reporting.
4) Ignoring overhead costs
Rent, supplies, labs, and equipment leases must be tracked to protect margins. We categorize expenses for benchmarking.
5) Delayed reconciliations
Waiting months to close books hides fraud and errors. We reconcile bank/credit accounts monthly with variance checks.
6) Weak documentation of deductions
Missing out on claiming continuing education credits, equipment depreciation, or software expenses can result in significant missed deduction opportunities that might severely impact your overall financial bottom line in a negative way. We take exceptional care and put in diligent effort to ensure that your ledgers are always meticulously maintained, thoroughly organized, and kept fully audit-ready at all times. This approach provides you with complete peace of mind, knowing your records are accurate and compliant, while also maximizing your potential savings and financial benefits to the fullest extent possible.
7) Tax surprises
Failing to submit your quarterly tax estimates on time can result in substantial penalties and fines imposed by the IRS, which can quickly add up and become a major financial burden. To help you steer clear of these costly penalties, we provide precise and highly reliable tax forecasts that are specifically designed and tailored to meet the unique needs of dental practices. Our approach utilizes a comprehensive and detailed rolling 13-week financial planning strategy, allowing us to ensure that your tax obligations are accurately projected, closely monitored, and effectively managed well in advance. This proactive planning helps you stay ahead of deadlines and maintain compliance with tax regulations, giving you peace of mind and financial control.
FAQs
Do you handle payroll and 1099s for dental staff?
Yes—our comprehensive payroll services thoroughly cover all aspects of hygienist wages, expertly manage associate 1099s with precision, and guarantee strict compliance with every relevant dental labor regulation and rule to ensure your practice runs smoothly and within legal requirements.
How often should a dental practice reconcile accounts?
Performing monthly reconciliations is highly recommended as one of the best practices for effective and efficient financial management. Engaging in this regular, consistent, and systematic process helps to significantly reduce the risk of fraudulent activities and financial discrepancies. Additionally, it ensures the accuracy, completeness, and reliability of tax filings, which is crucial for compliance with regulatory requirements. Furthermore, maintaining this routine reconciliation process helps to build and sustain the confidence and trust of lenders and investors by clearly demonstrating responsible, transparent, and reliable financial oversight and control.
Can you provide dental-specific financial reports?
Yes. We specialize in designing comprehensive and highly detailed profit and loss reports that specifically emphasize essential key factors including hygiene standards, chair time utilization, and laboratory costs. These meticulously crafted reports offer you thorough and invaluable insights into every aspect of your business operations. Each report is thoughtfully customized and carefully tailored to enhance your capacity to make well-informed, strategic decisions that can lead to significant improvements in your overall business performance, operational efficiency, and long-term success.
Ready for stress-free dental books?
We help dentists with bookkeeping, controller/CFO, and tax planning. Schedule Consultation
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