Sales and Use Tax audits by the California Tax and Fee Administration

Gregory Blake CPA, ABV   Many businesses, especially dentists and doctors, are seeing an increase in Sales and Use Tax audits by the California Tax and Fee Administration (CDTFA.)  This is the result of Assembly Bill (AB) No. 147 (Stats. 2019, ch. 5) which requires out-of-state retailers with no physical presence in California to collect use tax, if during the preceding or current calendar year, the total combined sales of tangible personal property delivery to California by the retailer...Read More

May is Disability Insurance Awareness Month

Did you know that May is Disability Insurance Awareness Month? Disability insurance is often the forgotten part of securing your financial picture. After all, who likes the idea of potentially paying years and years for a product that may never be needed. However, this coverage becomes essential should you be unable to work due to injury or illness. And for a dentist or dental specialist, because motor skills play such an important part in your ability to your job, having adequate protection is...Read More

Associate Pay for Invisalign

This article addresses two factors related to Invisalign: Should I offer it in my general dentistry practice? How should I pay an associate that does Invisalign? Should I offer Invisalign in my general dentistry practice? Many of our general dentists are asking us about Invisalign.  Should they introduce it into their practice? Our answer is this: Invisalign may be profitable for you. The answer is determined by how deep of a plunge you take with Invisalign, and whether it fits within your...Read More

Pitfalls of Buying a Satellite Office from a Multi-Office Practice

As we’ve written here before, we rarely encourage doctors to buy multiple offices.  The reason for this is the number of failures we’ve seen in the added offices.  And eventually these failing satellite offices go back on the market while the multi-office practice owner retreats to her/his strong “home base” office.  Deal-seekers, this is a good way to get a discounted office, but there’s a reason the price is likely low.  Here’s what to look for:   1.Financial...Read More

To entertain or not to entertain…

The Tax Cuts and Jobs Act implemented changes that were enormously beneficial for our clients in 2018.  The basic condensing of tax brackets and lowering of just about all tax rates, as well as the vastly improved AMT exemptions, proved to lower the marginal tax rates for a large majority of our client base.  The implementation of the Qualified Business Income Deduction also served to lower the amount of taxes paid by many.  But before I sing the bill’s praises too loudly, I must mention...Read More

Reasons to Hire PracticeCFO Transitions even if you have an Interested Buyer

Proper Valuation: We have underwritten hundreds of practices and can help accurately estimate a practice’s true market value.  Having a 3rd party valuation expert involved helps both buyer and seller feel comfortable with the price and come to an agreement quickly.  In addition, our practice valuation expertise makes it easier for banks to underwrite the practice and stretch to achieve the highest possible loan amount (loan amount being synonymous with purchase price). Transition...Read More

The Ultimate Sophistication is…..

Pop Quiz Doc. What was it Da Vinci Said About Sophistication? Well, I can’t give you the answer just yet, but let me preface it. Compare these two doctors: Alright, here’s the answer to our little quiz: The ultimate sophistication is simplicity – Mr. Leo DV My examples above aren’t made up. The data is clear. Those doctors with a simple financial structure and healthy practice progress toward financial independence faster. And, doctors that keep it simple, tend to have less stress....Read More

Student Loans and Financial Planning for the Young Doctor

I recently was invited to speak to the 4th year dental students at USC. My subject was student loans and personal finance. The level of student loans these hard working, very bright students have accumulated is generally between $400,000 and $600,000. This isn’t unusual for students in other dental programs throughout the country. The questions I received from these students were: What is the difference between IBR, PAYE, and REPAY and which program should I be on? Can I just pay the minimum...Read More

Building an Effective Dental Online Marketing Strategy

As a dentist, you have a limited amount of time that you want to utilize to run your practice. This includes training staff, dealing with operations, finances, and marketing. The majority of your hours spent in the practice should be helping your patients. Today’s discussion is going to be focused on your marketing efforts and I hope to shed some light on your options. Working with a trusted partner can provide you with more free time to spend with your patients while also increasing your...Read More

Buy a Second Practice: How to Enrich Vendors, Get Really Stressed, and Make Less Money

Do you really like your banker, equipment supply rep, landlord, real estate broker, attorney, and accountant?  Do you like them so much you’d like to pay them even more while your fortunes decline?  Great.  Then open a second dental office. We hear about clients wanting to buy second offices or start a DSO (Dental Service Organization, e.g, Pacific Dental Services) nearly every day.  They go to a seminar, get excited, talk to friends who’ve done it, then start mapping it out.  The...Read More
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