Running a dental practice can be a difficult and time-consuming process, especially as the industry continues to grow and develop. Many practices are now run by dentists themselves, who have spent many years studying dentistry, but not accountancy. This means that many do not feel equipped to cope with the pressures that are put on them when juggling changing legislation, employment issues and still needing to offer dental services themselves.
That is why more and more dental practices are turning to specialist accountancy services who understand the dental industry and can tailor their services to help manage the demands of a dental practice. In this article, Rogers Spencer, Chartered Accountants in Nottingham takes a look at what a specialist accountancy firm can offer for dental practices and why you should consider hiring one.
Industry knowledge
The dental industry is very unique in the way that it works, and those who are unfamiliar with it may struggle to get to grips with some of the intricacies. It is a field that is constantly evolving, and so new regulations and ways of working are a regular thing, making it difficult for some to keep up.
By hiring an accountancy firm that specializes in looking after dental practices, you are taking on people who already know exactly what you are dealing with and what you need. That means you will not have to spend time teaching them about the industry as they will already be on top of it and will make it their business to understand any changes as well as you do.
Time saving
Dentistry can be very hard work, especially when it is combined with the stresses and strains of running a practice. There can be a lot that you need to try and do, and often not enough hours in the day. A specialist accountancy firm can help to take some of the strain by taking care of your bookkeeping, tax requirements, and other accountancy needs. That frees you up to work on other aspects of the practice and can play a big part in giving you your time back.
NHS rules
As many dental practices have a combination of NHS and private patients, there will need to be different accountancy approaches and specialist knowledge required. A specialist accountant will understand the rules behind NHS contracts and how they are paid and can also help you avoid accidentally creating incorporation plans that could breach your NHS contract.
They will also have in-depth knowledge of the NHS Pensions and the Net Pensionable Earnings (NPE) which can be notoriously difficult to calculate.
Finance plans
Many dental treatments can be expensive, which is why many dental practices offer payment plans of different sorts. These can be tricky to authorise and there are some strict rules around this which you need to be aware of. A specialist dental accountant can help you to identify the best way to make these plans work for you and your patients and can ensure that they’re effectively and correctly worked into your accounts.
Dental partnerships
All accountants should be aware of the way in which partnerships work in business, but many will not necessarily be aware that there are different rules around dental practices. The Dentists Act stipulates that to do this, both partners must be dentists or GDC registrants. If an accountant does not know this, they may recommend the wrong type of business structure for you, which can have significant tax implications and can even be illegal.
Benchmarking
When an account deals with a business in a new field, it can be difficult for them to know how that business is performing in relation to others. However, if your accountancy is looked after by a specialist firm, they will already have some knowledge of this.
That means that they can compare your own Profit & Loss accounts with some of the others on their books to identify whether you are performing better or worse than those around you. Not only this but by carrying out a line-by-line analysis, they can help you to understand your strongest areas as well as those that need more attention.
A specialist accountant can offer a form of benchmarking that will allow you to fine-tune your business and increase your profits by understanding more about how you are working.
Practice valuations
Whether you are looking to buy a dental practice or sell one, you would be wise to consult a specialist dental accountant. As they are likely to have been involved in the buying and selling of practices, they should be more aware of some of the things that you need to keep an eye out for.
They can look for any potential pitfalls and identify some good opportunities that other accountants may not necessarily have seen.
As they look after the accounts of other practices, they will also have a better understanding of the size, the running of a business, and what assets it holds and can therefore form a judgment on what a fair valuation of a practice should be.
Varied services
With specialist knowledge on hand, a dental accountant should be able to provide you with a wide range of useful services all under one roof. This could be anything from compliance assistance to helping with NHS tenders.
They can also work with dental practice payroll services deal with both corporate and personal tax returns and provide you with dedicated financial advice that is suitable for the industry that you work in. A good accountant should not just be able to submit your accounts for you, they should be able to actively work with you to help your practice grow.
Dental practices seem to be under more pressure than ever, so it is important that your accounts are in good order at all times. To do this properly you will need specialist help, so enlisting an accountancy firm who understands your business model can save you huge amounts of time and actively help to increase your bottom line.
