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How a good accountant can help a dentist practice

Running a dental practice in The Wirral, Birkenhead, Liverpool or Chester is not easy. These are big places, so there is a lot of competition to fend off. If you are running a dental surgery in a place like this, you need to do everything you can to give yourself an edge over your direct competitors.

Employ the right people

One of the most important steps any business owner can take is getting the right people onboard your team. Of course, frontline personnel like dental nurses are important, but employing the right backroom staff is also vital.

That includes the accountant that you employ. Choosing the right accountancy firm will have a big impact on how efficiently your practice runs, and therefore on how successful it can be.

Tax advice

Perhaps one of the most obvious ways a good accountant can assist you is by helping you to navigate your way through complex tax regulations. They will put in place processes that ensure that all of your income and outgoings are properly recorded, and in a timely manner.

This approach ensures that you always have access to accurate accounts that can be used to make sure that your tax return is spot on. Your accountant will ensure that all expenses are recorded in a way that allows you to deduct them from your profits, and therefore pay less tax. They will also take care of making sure that you don’t fall foul of VAT regulations.

Personal tax advice for you and your associates

If you are the practice owner, or an associate, you will want to pay as little income tax as possible. A good Wirral based dental accountant will explain how you can do this, including advising you about the best way to draw up contracts for the key personnel in your practice.

They will make sure that both you and your employees know how to comply with all of the relevant tax legislation. This will help you to avoid the stress, hassle and expense of being investigated by the authorities.

Pension advice

An accountant can advise you about how to secure a good pension for yourself and your staff. Given the fact that many dentists have at some time, or still do, work for the NHS, the best dental practice accountants are also able to offer advice about the NHS pension scheme. That includes having a full understanding of the Annual Allowance Change mechanism.

A good accountant will also be able to provide basic pension advice for your staff. For example, they can help a new associate that you take on to understand how to approach their taxes and set up the right type of pension.

Make your practice more profitable

Everyone, including dentists, wants their business to be as profitable as possible. This is something an experienced and qualified accountant can really help you with.

They will be able you to provide you with a range of profit and loss reports that you can use to help you to understand your business better. These reports will show you which of the treatments that you offer are the most profitable, and identify any that may be losing you money.

Armed with this information, you will be able to scrap any treatments that are not profitable. Profit and loss reports also allow you to focus your marketing efforts on those products and treatments that make you the biggest profit.

You can also link your account files to your patient profiles. Doing so will allow you to better understand your customers.

You will be able to identify which demographic spends the most, and makes you the most profit. Giving you the chance to go out and find more of this type of patient for your practice.

Put together a realistic business plan

Using the reports that your accountant produces you will be able to put together a comprehensive, and attainable, business plan. This will ensure that you set realistic goals and stay on track as you work to expand your practice.

Advice about customer finance

Dental treatments are not cheap, but people want good teeth. As a result, they are often prepared to borrow money to pay for cosmetic dental procedures like teeth whitening.

A good dental accountant will be able to point you in the direction of firms that will be willing and able to provide finance deals for your patients. This will enable more of your customers to be able to afford the treatments that you offer.

Help you to expand

No doubt, you would like to expand your practice. You may want to do so by offering a bigger range of services or by opening up a new dental clinic in Birkenhead or Chester.

Regardless of how you want to grow your business, your accountant can help you to do so. They can work out how much your expansion plans would cost to implement, as well as build cost models to help you to work out what approach will be best for your practice.

Help you to secure finance

In all likelihood, you will need to borrow funds to put your expansion plans into action, which means that you will have to apply for loans. Again, your accountant can really help you with this.

They can pull together all of the information you need to fill out the applications, making it far easier for you to complete the necessary forms. In addition, they will provide reports for potential lenders that will demonstrate your ability to pay them back. These types or reports greatly improve your chances of your securing the funds you need. Often you will be able to negotiate better terms and conditions meaning that your loan will cost less.

So, if you are someone that is running a dental practice on The Wirral, in Birkenhead, Liverpool or Chester we urge you to review how your accounts are done, and look for ways to improve this area of your business. Doing so is a quick and easy way for you to make your practice more profitable and provide a better service to your patients.

Posted by Mark
June 24, 2016

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