Dental Practices Require Extra Tax Planning

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Dental Practices Require Extra Tax Planning
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• Research has shown that most dental practitioners
  overpay in taxes, and the reason behind this
  seems to stem from their lack of proactive tax
  planning. By not appreciating, understanding and
  acting upon the myriad nuances of the tax law,
  dentists the country over are missing out on
  potential tax saving opportunities and
  jeopardising their financial futures.
• How proactive tax planning can help dental
  practices
• Creating a personalized tax strategy with the
  overall goal of reducing the tax burden and then
  implementing it throughout the year, is what
  proactive tax planning is all about, and when
  done correctly, it can pay significant dividends
  for dentists and their practices.

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• Since a clear understanding of the tax code is
  essential for effective tax planning, most
  business owners including dentists with their own
  practices, seek professional help and guidance
  from a qualified and experience tax preparer.
• When should you begin to plan for your taxes?
• Effective tax planning must be carried out
  throughout the year, as once the tax year is done
  and dusted, there is little that you can do to
  minimise your taxes. Accountants who typically
  work for dental practices are usually good at
  recording historical data, meaning that they
  collect the raw data from the practice once the
  tax year has ended, clean it up and put the right
  numbers in the right boxes on the right forms,
  and so on.

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• Usually very efficient and knowledgeable in this
  field, this type of work is also known as
  compliance work.
• The typical relationship between a dentist and
  their accountant
• When a dentist opens their own practice, they
  usually will have little cash flow and will
  search for the cheapest accountant to complete
  their tax returns. Keeping their practice out of
  financial trouble and on the right side of the
  law, is their primary goal at this stage.
• However, as the practice grows, the cheaply hired
  accountant may struggle to help develop
  individualized tax saving strategies for their
  client, as they may lack the knowledge, skills
  and training to do so at this level.

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• Unfortunately, this poor hiring decision from the
  outset, often ends up costing the dentist more
  money in taxes.
• The importance of hiring a tax professional who
  specialises in dentistry
• Statistics show that nearly 75 of all dentists
  own small practices, and the process of them
  beginning to lose money to the government often
  starts before they buy their practice from a
  retired dentist or when they become associates or
  partners in a practice that they intend to
  purchase. Those involved in the sale transaction,
  such as brokers and attorneys, are experts at
  making the most out of situations like this.

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• The brokers locate dental practices that are
  looking to be sold or partnered and then market
  them for suitable buyers. The attorneys then
  prepare the legal paperwork to ensure that their
  clients are protected during the transaction, but
  neither party are tax law experts and are often
  clueless as to the tax implications of such
  transitions. Sadly for the dentist, the purchase
  agreements are usually full of potentially costly
  tax errors, and both buyer and seller will see
  themselves being forced to pay out more in taxes
  than they would have done had they sought the
  advice and guidance of a qualified tax
  professional who specializes in dental practices.

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• To protect your dental practice from the ravages
  of paid professionals who are not experts in tax
  law, always seek help from those who have your
  tax interests in mind, and who can help you plan
  for your taxes throughout the year.
• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.