Why should you use specialist dental accountants?

why use specialist dental accountants

Dentists dedicate themselves to years of hard work to qualify in their profession and establish a practice. That is why, as a dentist, you deserve the services of a specialist accountant to help manage your financial affairs.

Specialist dental accountants understand the industry and the intricacies of its tax legislation. They offer sector specific services, such as tax planning for the NHS pension scheme, and help their dental clients to achieve maximum tax efficiency.

Dentistry finance is a very specialised area and managing a dental practice today is more complex than ever, due to constant changes in guidelines and legislation. Please read on to discover how professional dental accountants can help you to navigate the complexities of operating your practice, whether in either the private sector or NHS.

What services do specialist dental accountants offer?

There are many Chartered Accountants that provide accomplished accountancy services and solid advice on managing your finances. However, when it comes to dentistry, it pays to employ the services of someone that understands the intricacies of the sector, the relevant legislation and tax requirements, and the day-to-day challenges involved in running a successful practice. Their specialist knowledge will not only benefit your immediate cash flow, it will support you to improve business performance, and to plan for a more profitable future.

Here are some of the specialist services accountants for dentists can offer to improve the health of your finances.

Assistance to set up a new practice

Setting up a new dental practice is a very expensive venture, with a whole host of equipment required from the moment you open your doors. Dental accountants can assess whether your capital is sufficient to cover all of your setup costs and begin trading with confidence. They can also produce trading and supply forecasts which may be required by your lender. For existing practice owners, your accountant can assist with the necessary business planning and forecasting for expansion, efficient tax planning and exit strategies/succession planning.

Management reporting

Dentist accountants can provide management reports to assess your business performance, benchmarked against the national standard. They will analyse and interpret key performance indicators using reports from the National Association of Specialist Dental Accountants and Lawyers (NASDAL). Based on the results, they can work with you to improve your financial efficiency and performance.

Advice on business structure

Many dental professionals benefit from operating through a limited company, with the increased legal protection and tax efficiency that it affords.  However, there are other options available that may be more suited to you, such as operating as a sole trader, a partnership, or an LLP. Your accountant will support you in weighing up the advantages and disadvantages of each option. Depending on the outcome, they can advise on the appropriate status for those working in your practice.

Tax planning and efficiency

Operating in the dental industry can give rise to some potentially complex challenges in terms of tax. Dental accountants can offer expertise to overcome these challenges and increase your tax efficiency through responsible accounting and intelligent planning. They will ensure that you claim everything you are entitled to, such as Capital Allowances and Business Asset Disposal Relief.

VAT in respect of dentistry services is unique, and another area in which the advice of a specialist can be of great benefit. The provision of dental services is exempt from VAT, but supplies for purely cosmetic procedures are taxable. Your accountant will inform you as to whether you need to register for VAT and guide you through partial exemption which can be an extremely complex area of tax.

Due diligence

Dental accounting includes carrying out due diligence for dental associates buying into an existing practice. This involves conducting a review of the practice to ensure reported figures are an accurate representation of the business. This provides the buyer with the assurance that the deal is viable and carries an acceptable level of risk. Services also include helping practices prepare their systems, records and figures with future Due Diligence in mind, to make that process as smooth as possible.

Succession and exit planning advice

Your dental accountant can help you to reduce your Capital Gains Tax bill when the time comes for you, or a partner, to retire. In order to do so, forward planning is essential and your accountant will discuss your intentions with you and ensure you claim the right allowances and reliefs, such as Business Asset Disposal Relief.

NHS pension scheme and annual allowance pension charges

The NHS pension scheme and HMRC pension legislation can be a real headache. A dentist accountant will guide you through the relevant calculations and submissions, and provide support with planning. They can offer valuable advice on the NHS superannuation scheme, the pensions annual allowance, and lifetime allowance limits.

In addition to these specialist services, your accountant can relieve you of the burden of your day-to-day financial affairs, so that you can focus on patient care and the growth of your business. For example, payroll is a time-consuming and sometimes tedious task, which your accountant can take off of your hands by preparing payslips and ensuring that you comply with PAYE and HMRC requirements.

Online accounting for dentists

Many Chartered Accountants now offer cloud-based accounting systems to help manage your finances more efficiently. Software such as Xero has revolutionised small business accounting and is a real game-changer for busy dental practices.

Online software enables you to manage your cash flow in real time, whenever and wherever it suits you. It monitors expenditure and automates invoices, expenses and payments, saving you valuable time. It also allows you to be completely paper-free, eliminating the clutter of endless folders from your practice and helping you to do your bit for the environment.

Safely and securely stored in the cloud, you can access your accounts in tandem with your accountant, enabling you to work together whilst cutting down on time-consuming calls and meetings. In the long-term, it can support you in budgeting and growing your practice.

If you think you would benefit from having your finances at your fingertips in this way, be sure to talk to your accountant about cloud-based software. As a Xero Gold Champion Partner, Approved Accounting can offer you our expert advice, help with implementation, provide training and ongoing support.

Specialist accounting for dentists from Approved Accounting

As a dentist, you understand the importance of professionalism and personal care, values which we share at Approved Accounting. We specialise in dental accounting and have many years of experience working with dentists and other medical and healthcare professionals, who trust in our knowledge of the sector to help their business thrive.

Whether you are an associate, a sole practitioner, running a partnership, or a limited company, we can support your business by helping to improve your systems, optimise your business structure and maximise tax efficiencies. With Approved Accounting, your dental business can look forward to a healthy financial future.

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Approved Accounting Ltd

We are an accounting firm for small to medium sized businesses. We pride ourselves on a personal service. Please contact us if you would like advice and for our latest bookkeeping pricing packages.

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