Accounting and Bookkeeping 101 for Dental Practices!

However you are a place of business, and you did exchange services for expected payment. There are a few things you can do to get patients to pay unpaid balances. Insurance companies will work hard to make sure they don’t have to pay you. Among the many downgrades, alternate benefits, and exclusions to your patients’ policies, it can get really frustrating. Even if you have to call 10 different people at an insurance company, do not take no for an answer.

• This means you’re pulling an incorrect report and looking at the wrong data.
• Patients are more likely to pay you upfront if you have already explained to them why they owe you.
• As a result, dentists generally must choose from corporate and LLC structures.
• Any equipment that you purchase for your dental practice qualifies for a tax write-off as a business expense.
• We download and organize all month-end bookkeeping related documents for our dental practices into Dropbox folders for each client.
• If a practice write-off is more than 2 percent a year, it has a significant problem to resolve in the area of patient management.

Future expenses like these can be prepaid, such as on a business credit card with a no-interest option – so you don’t have to strain your cash flow, as long as they are filed before December 31st. By paying for these expenses this year, you may be able to take advantage of a potential tax write-off this year. Each of these decisions can affect the taxes you may owe and each presents avenues to maximize your upcoming tax return, minimize your tax liability, and a way to get the best deduction for your practice. Neither Henry Schein, Inc. nor Henry Schein Financial Services provides tax advice. Please consult with a qualified professional tax advisor for your unique business situation. If you thought the list above was incredible, you’re in for a treat.

Here are some strategies, and questions to consider, to better manage your your 2022 taxes.

It is imperative to keep an arms-length perspective on you, the employee, and relationship with the S corporation. If you worked for Google or Ford, you wouldn’t be dental bookkeeping able to get the business to buy your groceries or pay your mortgage directly. Here is another quick table to help you out with the “Which debit card should I use?

• If you travel outside the USA, you only have to spend at least 25% of your time outside of the country conducting business for the getaway to qualify as a business trip.
• For example, accounting for your revenues properly despite the complexities of insurance billing can be one of the most significant challenges.
• Dentists are rarely excited by the prospect of financial concerns interfering with their craft, but you can’t afford to ignore that aspect of your responsibilities.
• With the volume of work it has, keeping up with its bookkeeping and accounting needs is also necessary.
• Not only do busy dentists enjoy reducing their time doing accounting, but focusing on your craft is in your business’s best interest.

Due to Changing Nature of Tax Law and Legal field, we do not make any warranties as to accuracy or completeness of this information. Furthermore, we do not endorse any third-party companies, products, or services https://www.bookstime.com/ described here and cannot take responsibility of how the information is used. We’ll review your information and reach out to schedule a complimentary 30-minute consult to discuss how our team can help you.