starting your dental business uof md presentation
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Starting Your Dental Business
Presented to University of Maryland School of Dentistry
Advanced General Dentistry Residents
Larry S. Goldberg, DDS, CPA, CVA
Larry S. Goldberg, DDS, CPA, CVA
Larry S. Goldberg, DDS, CPA, CVA
What are your Plans? Starting a practice?
Associating?
Military?
Academics/research?
Cash Flow and Debt
“Students who graduate…from public schools paid an average of $124,397 for their education, while those in private schools paid $223,788.”
- ADANews, September 5, 2011
Cash Flow Key Metrics Core Expenses- ratios to
watch Financing, borrowing money,
niche lenders Paying down debt and
profitability
Create a Strong Team
Accountant Lawyer Insurance advisor Banker
Create a Strong Team
Your accountant will help you with:
Entity selection and tax implications Projections
• Feasibility of business opportunities• Be wary of brokers selling practices
Taxes- payroll, income, corporate Record Keeping Obtaining federal and state ID numbers
Create a Strong Team
Your lawyer will help you with:
Negotiating contracts• Leases• Buy/sell• Partnership• Employment
Create a Strong Team
Your insurance advisor will help you with:
Personal disability Life Malpractice Office overhead Workers’ compensation Health Long term care
Create a Strong Team
Your banker will help you with:
Financing Banking services
Entity Selection…and taxes
Sole Proprietor• Self-employment tax• No owner salary• Estimated taxes
Entity Selection…and taxes
LLC (limited liability corporation)• Self-employment tax• No owner salary• Estimated taxes• Corporate protection
Entity Selection…and taxes
S Corporation• Payroll taxes and withholding• Owner takes a salary• Distributions• Corporate protection
Record KeepingINTERNAL RECORDS INFORMATION FOR CPA
Patient information• Charges• Payments• Adjustments• Treatment notes
Human resources related records
QuickBooks files Self recorded or Use bookkeeper/CPA Payroll records Large equipment
purchases Financing terms
Employees
I have employees. What do I need to know??
Paperwork and forms (W-4 and I-9) DIY or payroll service? Employment manual or
handbook Employee benefits and
retirement plans
Depreciation
Dental practices are very equipment intensive. You can depreciate this equipment over time.
Current tax law allows accelerated depreciation on equipment purchases.
DepreciationWHAT IS DEPRECIABLE?
WHAT IS AN EXPENSE ITEM?
Dental equipment Computers Cabinets Furniture and fixtures Improvements
Dental supplies Lab costs Rent Employee salaries Normal and reasonable
cost incurred in a business
Tax Reporting As a service business a dental
practice will use Cash Basis accounting for tax reporting
Personal Financial Planning
Retirement and financial planning from the start.
Questions?
Larry S. Goldberg, DDS, CPA, CVA
410-356-1000
www.glassjacobson.com