As a qualified dentist, you likely put in years of effort to become qualified in your field and then develop a practice. That is why, as a dentist, you should hire a professional dental accountant to help you handle your finances.
Dental accountants are familiar with the industry and the intricacies of tax laws in this particular area. They will provide industry-specific services, such as tax preparation for the NHS pension scheme, and assist their dental clients in maximising their tax savings.
Dentistry finance is a highly specialised field, and maintaining a dental practice is more difficult than ever before, thanks to frequent changes in guidelines and legislation. So how exactly can a dentistry accountant benefit your new dental practice?
They Can Assist You In Opening Up A New Practice
Setting up a new dental practice is an expensive endeavour that necessitates a slew of equipment from the moment you open your doors. Expert accountants for dentists will determine if you have enough money to cover all of your startup costs and trade confidently. They can also create trading and supply forecasts, which your lender can need. Your accountant can help you with the requisite business planning and forecasting for growth, effective tax planning, and exit strategies.
Tax
In terms of taxation, working in the dental industry may present some potentially challenging challenges. Dental accountants will help you conquer these obstacles and improve your tax productivity by keeping careful records and preparing ahead. They’ll make sure you get all of the benefits you’re entitled to, including Capital Allowances and Business Asset Disposition Relief.
VAT on dentist facilities is a one-of-a-kind situation, and it’s another place where expert advice can be invaluable. Dental facilities are VAT-free, but materials for purely cosmetic procedures are subject to VAT. Your accountant will tell you if you need to apply for VAT and will walk you through the process of partial exemption, which can be a very complicated area of tax.
Business Structure Advice
Many dentists benefit from working as a limited company. This is due to the improved legal security and tax efficiency it provides. Other options, such as acting as a sole trader, forming a partnership, or forming an LLP, may be more suitable for you. Your accountant will assist you in weighing the benefits and risks of each choice. They will advise on the proper status for those employed in your practice based on the result.
Management Reporting
Accountants for dentists will prepare management reports that compare the company’s results to the national average. They’ll use reports from the National Association of Specialist Dental Accountants and Lawyers to analyse and interpret key performance metrics. They will work with you to boost your financial productivity and success based on the findings.
While anyone can train and register as an accountant, there are strict rules regarding lawyers for dentists. If you are looking at setting up your own dental practice, there are many benefits to hiring the right dental accountant for your dental practice.
