The Unique Financial Needs of Dental Practices
Owning your own dental practice brings with it the chance of financial freedom…but for that to happen, you need to stay on top of your finances.
A dental practice is a business, and as such, it has some accounting requirements that are similar to other business types. However, it also comes with its own financial challenges.
With the cost of your premises, utilities and equipment, you’ll have higher overheads than many other business types. You may have the challenge of making sure your own accounts are in order, as well as helping any self-employed dental associates who work with you to comply.
If your practice has an NHS element, you’ll need to ensure that you’re doing things right so that NHS pensions are calculated correctly. Additionally, if you’re looking to expand, you will want to be working with someone who understands exactly how your industry works…and that’s where specialised accountants for dentists come in.
Why General Accountants May Fall Short
The basics of accountancy are the same for any business. But why settle for just the basics?
A general accountant will work with businesses of all types and sizes, in all sorts of sectors. If qualified and experienced, their accountancy knowledge and experience will be vast. But how experienced are they in dealing with the intricacies of accounting for dentists?
They may not have experience in the quirks of the dental sector. They may be unfamiliar with the ways in which dental practices operate – particularly those that offer both NHS and private treatments, and those who have both employees and associates working for them.
You’ll want to be sure that any accountant you work with understands both your sector and your specific business from top to bottom.
Benefits of Specialised Accountants for Dentists
By choosing a specialist accountant for dentists, you can be certain not only that you’re complying with the relevant rules and regulations, but also that you’re saving yourself money where possible, and putting yourself in the best possible position for future growth.
Compliance is vital as business structure, accounting, and pensions in the world of dentistry can be incredibly complex to navigate.
Experienced accountants for dentists can help you to navigate NHS contract rules. They can help you to make sense of NHS incorporation policy and pension rules. Ultimately, they can offer solutions and expertise that are far more tailored to your needs – allowing you to focus on your clients.
Tax Planning and Deductions for Dental Professionals
As a qualified dentist, you have an incredible amount of expertise in your field. To have the same level of expertise in accounting practices would take years of study and experience – and nobody expects that.
Without this experience, though, there are many opportunities you may be missing – and that’s where accountants for dentists come in.
A specialist accountant can help you not only file your taxes but also work out where efficiencies and savings can be made. It may be that you can make more of your tax-free personal savings allowance to reduce your tax liabilities, be more selective in your capital allowances planning to avoid overstepping limits, make more of pension contributions and more. There are plenty of tricks to help you retain more of your revenue – and a specialist accountant for dentists can help.
Managing Cash Flow in Dental Practices
Business may be booming. You may have plenty of cash in the bank. But what happens if things suddenly change – if, for example, another pandemic hits and you are unable to see clients? Do you have enough in reserve to keep you going? Can you forecast what your bank balance will look like in one month, three months, six months? Would you be able to meet all of your financial obligations?
Understanding your cash flow and how it changes is vital for business success. It can help you understand your current position and how this may change. It can help you plan for your outgoing expenses and understand where cost savings can or need to be made. It can also help you to understand whether there are times when you need to increase your income or defer expenses in order to remain in a strong financial position.
Specialised accounting for dentists is based on years of experience in the sector. Dentist accountants understand how the industry works, the types of expenses you will incur and how seasonality and other factors can impact your cash flow, optimising your cash flow management going forward.
Financial Compliance in Dental Practice Accounting
For dental practices in the UK, there are certain regulatory compliance requirements that must be adhered to. Failure to do so could result in financial penalties, legal action, and a loss of reputation – potentially damaging your practice beyond repair.
Specialised accountants for dentists will work with you to ensure you stay compliant. They can ensure that your financial record-keeping is accurate and that you are submitting your tax returns accurately. They can advise on areas like pensions and National Insurance contributions and the best ways to invest some of your revenue without falling foul of HMRC. They can help you with queries relating to the structure of your practice, as there are some complex rules around partnerships and other entities.
Essentially, a firm or individual experience in accounting for dentists can transform your business. Working with a dedicated dental accountancy professional can ensure that you are fully compliant, that you save money where you can, that you understand your cash flow and that you can plan for your future.
If you’re ready to take your dental practice to the next level, get in touch. Our team of highly experienced accountants understands that managing a dental practice can be challenging enough even without the minefield of accurate accounting, and we’re here to help.
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