By Kenneth Botwinick, CPA
Having real-time guidance from a certified public accountant (CPA) who specializes in the dental industry is extremely valuable. If you approach your local CPA and inquire about making a significant purchase like acquiring a CBCT or a new Panorex, they might respond with confusion, asking, “what’s a CBCT?” Similarly, if you ask a non-specialized CPA about the appropriate time to consider dropping a PPO insurance plan, they may reply with uncertainty, saying “what’s a PPO?” or “How would I know?”
When presenting yourself as a professional in the field of accounting, it is crucial to have a deep understanding of the specific industry you cater to. At Botwinick & Company LLC, we are experts in dental practice accounting and have been for nearly thirty years. We successfully guided our dental clients through the worst of COVID times. Through skillful guidance and real-time open communication, we assisted and steered our clients through the PPP programs, the EIDL loans, the HRSA/HHS grants and their reporting requirements, and the employee retention credits (“ERCs”). For each of these programs, they learned about it from us first and then relied on our team to make sure their practice received all the stimulus grants they were lawfully entitled to.
However, beyond the special needs of the last several years, we as dental-specific accountants have been relied upon to provide business counsel relevant to the dental industry. It is knowledge that has been attained and refined through decades of working in the industry, attending relevant dental practice management training programs, and helping our clients from their first days of practice owners until their passing of the office keys on to the new practice owner.
If you are beginning to realize that your current CPA does not understand your business or industry, we encourage you to reach out for a no-obligation, complimentary consultation with one of our dental-specific accountants. This is the perfect opportunity to experience the advantages of working with “New Jersey’s most reliable Dental CPAs.”
How can a dental-industry-specific CPA help with tax planning and preparation?
There are a number of unique tax considerations for dental practices involving depreciation of equipment, qualified business income (QBI) deductions, employee benefits, sales tax on ancillary dental products, and self-employment taxes depending on the practice’s organizational structure. It’s always a good idea to consult with a tax professional who is familiar with the specific tax considerations for dental practices to ensure compliance and optimize your tax strategy.
What are some specific financial challenges that dental practices face, and how can a dental-specific accountant help address them?
Dental practices face several specific financial challenges, including managing cash flow, handling insurance reimbursements, tracking expenses and revenue, and understanding tax implications. A dental-specific accountant can help address these challenges by providing expertise in dental industry accounting practices and regulations. They can assist with financial planning, budgeting, and forecasting to ensure the practice is financially stable. They can also help with optimizing insurance billing processes, identifying opportunities for cost savings and efficiency improvements, ensuring tax compliance, and designing financial strategies that are aligned with the dental practice’s unique needs.
About the author: Kenneth Botwinick, CPA, is a partner with Botwinick & Company, LLC and has been with the firm for more than 25 years. Ken specializes in providing accounting, tax, and business consulting services to dental and medical practices. He established the firm’s dental-focused accounting practice and is a sought-after lecturer at dental continuing education programs. Ken has his “finger on the pulse of the dental industry,” and with comprehensive experience in ownership transitions, he assists clients in the healthcare industry to reach their professional and financial aspirations and goals.
