Article
Benefits of Engaging a Specialist Dental Accountant
Article
Benefits of Engaging a Specialist Dental Accountant
October 28, 2024
5 minute read
For dentists managing their own practices, hiring a specialist is essential to ensure every financial detail is expertly handled. In his latest article, Andrew Hodgetts, a Partner at Shaw Gibbs and member of NASDAL (National Association of Specialist Dental Accountants and Lawyers) outlines the key benefits of this approach.
Being a dentist requires more than just clinical expertise, especially if you are running your own practice. Financial management plays a crucial role in keeping your working life profitable and compliant with tax laws and regulations. For this reason, engaging a specialist dental accountant can offer significant benefits. Unlike general accountants, specialist dental accountants bring industry-specific knowledge that can transform the financial health of both your personal and practice finances. Here are the key advantages of engaging a specialist dental accountant:
1. In-Depth Industry Knowledge
Specialist dental accountants understand the unique financial, taxation and compliance needs of both dental practices and associates. They are well-versed in the complexities of the industry, from understanding how NHS and private dental incomes are reported, to ensuring compliance with regulatory and tax requirements. Their familiarity with the dental sector allows them to provide more informed and relevant advice, which can help you navigate common financial and compliance challenges with confidence.
2. Maximizing Tax Savings
One of the biggest advantages of hiring a specialist dental accountant is their ability to help you maximize your tax efficiency. A dental accountant will help you ensure that you maximise reliefs for new surgeries and equipment, make claims for allowable deductions, recognise income in line with industry practice, work through the most suitable legal form, or advise on pension planning opportunities. A dental accountant can also help you implement tax efficient remuneration structures, putting more money back into your practice or to you personally.
3. Financial Planning
Financial planning for a dental practice requires an approach tailored to your specific business model. Specialist dental accountants can help you develop strategies for managing cash flow, planning for expansion, and saving for future investments in technology or staff training. By aligning financial planning with your business goals, you ensure that your practice remains on a stable financial footing in the long run.
4. Practice Valuations
Whether you are considering selling your practice, bringing in a partner, or acquiring another dental practice, an accurate valuation is crucial. A specialist dental accountant understands how to approach dental practice valuations, considering factors like goodwill, patient lists, and the value of equipment. They can help you in dealing with valuation agents, ensuring that you receive a fair and accurate valuation, whether you are buying or selling, giving you the confidence to make informed business decisions.
5. Acquisitions and Disposals
Whether you are looking to purchase your first practice or add to your existing portfolio specialist dental accountants can help you through the acquisition process. They can advise on the structure of the purchase, the most suitable vehicle to make the acquisition, terms within the purchase agreement, or financing implications and cash flow forecasts. Similarly when the time comes to sell they can help you with preparing the practice for sale, advising on the sale structure, financial terms of the deal, reviewing sale documentation, and liaising with legal advisors. As dental accountants they have experience in guiding clients through the various complications in the process of buying or selling a dental practice.
6. Regulatory Compliance and Risk Management
Compliance with healthcare regulations and tax laws can be daunting. A dental accountant is part of the professional team which ensures that your practice complies with all relevant regulations, from adhering to NHS contracts to maintaining proper payroll systems for your staff. They can also help you navigate pension schemes, business and payroll taxes, employee benefits, and ensure your accounts are prepared in line with industry standards. By staying compliant, you avoid costly penalties and reduce the risk of audits or legal issues.
7. Profitability and efficiency
Through their knowledge of the dental sector, the clients they deal with, and more restricted information they can access, specialist dental accountants may be able to give you feedback on how you perform against industry averages.
8. Peace of Mind
Engaging a specialist dental accountant provides peace of mind, knowing that your financial affairs are in expert hands. They take care of the complexities of financial management, allowing you to focus on what you do best—providing excellent dental care to your patients. You can rest assured that your practice’s finances are being managed in a way that is compliant, efficient, and designed to support long-term success.
Conclusion
A specialist dental accountant offers far more than basic bookkeeping—they bring industry-specific expertise that can have a profound impact on the financial health and growth of your practice and your personal finances. From maximizing tax savings to ensuring compliance and driving long-term financial planning, the tailored services allow you to optimize your operations and stay ahead of the curve. By engaging a dental accountant, you make a smart investment in the future success of you and your practice.
If you would want more information on how to maximise these benefits, please contact Andrew Hodgetts, who would be delighted to help.
Author:
Andrew Hodgetts
Partner
Need expert advice?
Speak to an expert for advice on
+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you
Email
info@shawgibbs.com
Author:
Andrew Hodgetts
Partner
Need expert advice?
Speak to an expert for advice on
+44-1865 292200 or get in touch online to find out how Shaw Gibbs can help you
Email
info@shawgibbs.com