Podcast Recap: Marketing Mastery for Dentists – Building an Authentic Brand and Growing Your Practice

Attracting and retaining the right patients is one of the biggest challenges dental practice owners face after opening their doors. With new offices popping up on every corner and the rapid evolution of social media and digital marketing, standing out has never been harder – or more important.

In a recent episode of Beyond Bitewings, Edwards & Associates compiled expert advice from Darren Tessitore (CEO of Thrive Reviews), Erin Gregor (founder of Pod Growth), and Brandon Hubbard (founder of Pain-Free Dental Marketing) to share practical strategies for growing your dental practice through smarter marketing. 

Content First, Social Media Second

One major takeaway: start with your content, the educational material you create for patients, before worrying about where to post it. Think about the most common questions you get from patients, such as “Why do I need a cleaning every six months?” or “Should I be worried about fluoride?” and create content around those topics. Your social media platforms, in turn, serve as the ‘wheels’ to get that content in front of new audiences. Make sure your posts reflect what makes your practice unique.

Focus Your Efforts on the Right Platforms

Instead of trying to be everywhere at once, focus on one or two social media platforms where your ideal patients are likely to be. Secure your business name on all platforms, but put your energy into consistent, authentic posting where it matters most. Whether it’s short videos on Instagram or patient testimonials on Facebook, quality beats quantity.

How Much Time Should You Spend?

Expect to spend about an hour a day managing your online presence, and use it for planning content, creating posts, interacting with followers, and encouraging reviews. If that feels overwhelming, consider assigning a team member to help or hiring outside support.

Marketing Budget Guidelines

Wondering how much you should be spending? Experts recommend dedicating 3%-5% of your collections to marketing, including website management, review platforms, SEO efforts, advertising, and content creation. More important than the exact figure, though, is making sure you’re getting real results: attracting new patients and building a strong, visible brand.

Content is (Still) King

Paid ads still have their place, but today’s marketing success is driven by content: patient testimonials, before-and-after photos, and posts that demonstrate your team’s expertise and care. Patients want to truly connect with you, not just see a $39 cleaning special.

Don’t Ignore Your Google Business Profile

Many practices focus solely on their websites, but the first thing prospective patients usually see is your Google Business Profile. Optimizing it with updated information, fresh photos, current reviews, and proper keywords is critical to showing up in the coveted Google ‘Three Pack’ (those top three listings in local search results).

Pro Tip: Reviews Matter – A Lot

Encouraging consistent reviews – ideally more than your nearest competitors – boosts your online reputation and helps you rank higher in local searches. Make asking for reviews part of your checkout process and consider incentivizing staff to help.

Boost Your Dental Practice’s Growth

Marketing today is about meaningful connections, not just catchy ads. By focusing on authentic content, smart spending, and optimizing your online presence, you can stand out in even the most crowded markets.

For more insights like these, be sure to subscribe to Beyond Bitewings and follow Edwards & Associates for strategies to help your practice thrive!

BOI Filing for Dental Practice Owners: Our Attempt to Make Messy Timeline More Clear

If you’ve been trying to keep up with the Beneficial Ownership Information (BOI) reporting requirement, you’re not alone in feeling like it’s turned into a legal ping-pong match. Created to crack down on financial crimes, this new rule has become confusing, controversial, and as of now, unenforceable.

Here’s what dental practice owners need to know and what to do (or not do) next.

BOI Requirements: The Timeline That Just Won’t Quit

The Corporate Transparency Act (CTA) was passed in 2021, and it included new reporting requirements for small businesses, including most dental practices. But since then? It’s been chaos. Here’s a blow-by-blow:

  • January 1, 2024 – BOI reporting officially takes effect. New companies must file within 90 days of formation, and existing companies had to file by January 1, 2025.
  • December 3, 2024 – A Texas court issues a preliminary injunction, halting BOI enforcement nationwide and raising constitutional concerns.
  • December 5, 2024 – The federal government appeals the injunction, attempting to reinstate the rule.
  • December 23, 2024 – The Fifth Circuit Court briefly lifts the injunction, reinstating the January 1 deadline. FinCEN (the Treasury’s enforcement arm) responds by extending the filing deadline to January 13, 2025.
  • December 26, 2024 – The appeals court changes its mind again and reimposes the injunction, stopping enforcement once more. Oral arguments are scheduled for March 25, 2025.
  • January 4, 2025 – The Department of Justice files an emergency motion with the U.S. Supreme Court, asking it to lift the injunction and allow enforcement to resume. We now await the Court’s decision.
  • March 1, 2025 – A separate federal court rules the Corporate Transparency Act unconstitutional in National Small Business United v. Yellen. FinCEN announces it will not enforce BOI reporting against the plaintiffs in that case but keeps requirements in place for everyone else.
  • March 25, 2025 – IRS issues a memorandum clarifying that, due to legal uncertainty, BOI enforcement is paused pending further resolution. 

So, What Does This Mean for Dental Practice Owners?

The short version: You don’t have to file right now.

If you’ve already filed? No harm done, just sit tight.

If you haven’t? That’s fine too. The rule still exists on paper, but it’s tangled in legal challenges and is not being enforced at the moment.

But Will I Have to File Later?

Possibly. The Supreme Court could lift the injunction, or Congress could revise the law. But for now:

  • There are no penalties for not filing.
  • FinCEN cannot enforce the rule due to the ongoing legal battles.
  • Filing is on pause, not eliminated.

What Should You Do Right Now?

  • Don’t panic. No action is required at the moment.
  • Stay informed. This could change with little notice, and we will do our best to keep you informed.
  • Keep records ready. If enforcement resumes, filings may need to happen quickly.

Final Thought

We wish this were clearer, but welcome to regulatory whiplash. BOI reporting is either something you don’t have to do – or something you’ll need to do soon, once the courts make up their minds.

We’re watching this closely, and as soon as there’s a final answer, you’ll be the first to know.

Have questions about your practice structure or potential filing obligations? Reach out. We’re here to help you stay out of trouble and focused on your patients, not paperwork.

Podcast Recap: Tax Season Survival Guide – Expert Tips from a Tax Manager

Tax season can be overwhelming for dental professionals juggling practice management, patient care, and financial planning. But with the right strategies in place, you can avoid common pitfalls, reduce stress, and keep more of what you earn. In this episode of Beyond Bitewings, Edwards & Associates’ Tax Manager, Lorraine Kent, shares her best tax season survival tips, covering everything from deductions to tax planning strategies.

What’s Deductible (and What’s Not)?

One of the most frequently asked questions during tax season is, “What can I deduct?” While deductions can reduce taxable income, not everything qualifies.

For example, if you own rental property, expenses become deductible once the property is listed for rent – not before. Mortgage interest, property taxes, insurance, and routine maintenance are deductible, but major improvements must be capitalized and depreciated over time.

For dentists, business deductions include necessary expenses like equipment purchases, supplies, and professional development costs. However, personal expenses, like that daily coffee run, aren’t deductible just because you own a business. If you’re unsure, consult with your CPA before claiming a deduction.

Depreciation and Tax Planning for Asset Sales

Many dental professionals invest in real estate as a wealth-building strategy. However, Lorraine warns that depreciation can create tax liabilities when you sell an asset. Depreciation recapture means you could owe ordinary income tax on the portion of the gain attributed to depreciation deductions.

To minimize this impact, tax planning is essential. Strategies like timing asset sales, offsetting gains with losses, or utilizing a 1031 exchange can help reduce your tax burden. Before selling a rental property or dental equipment, talk to your accountant to ensure you understand the tax implications.

Avoiding Common Tax Filing Mistakes

The IRS uses electronic matching to compare reported income against W-2s, 1099s, and other tax documents. If something doesn’t match, expect a notice. One of the biggest mistakes taxpayers make is forgetting to report investment income.

For example, if you had a brokerage account that was closed mid-year, you still need to report income or gains from that account. Missing even one 1099 can lead to unnecessary penalties and interest.

Lorraine’s advice? Keep track of all tax documents, check for missing forms before filing, and review prior-year returns to ensure nothing is overlooked.

Tax Strategies for Smarter Planning

Tax planning isn’t just about what happened last year; it’s about looking ahead. Loss harvesting is one strategy that can help reduce taxable gains. If you have stocks with unrealized losses, selling them strategically can offset taxable gains from other investments, including real estate sales.

However, be mindful of the wash sale rule, which disallows a deduction if you repurchase the same stock within 30 days. Proper tax planning allows you to maximize benefits while staying compliant.

Red Flags That Can Trigger IRS Scrutiny

Certain deductions attract more attention than others. Lorraine highlights three areas where taxpayers often make mistakes:

  • Meals & Entertainment: Business meals must involve a client or work-related discussion to qualify. That solo coffee run? Not deductible.
  • Travel: Deducting a vacation as a ‘business trip’ without clear business purposes can raise red flags.
  • Auto Expenses: Claiming 100% business use of a personal vehicle is rarely justifiable unless you have multiple business locations.

Proper documentation is key. Keep detailed records and receipts to support deductions if audited.

Texas Business Property Tax: What Dentists Need to Know

For Texas dentists, business property tax (BPP) is an additional annual tax assessed by the county. This tax applies to tangible assets like dental equipment and furniture. If you’re a new practice owner, expect to pay BPP based on the initial purchase price of your equipment. However, over time, you may be able to adjust valuations to reflect depreciation.

If you receive a BPP notice, don’t ignore it. Review it with your CPA to ensure accuracy and identify opportunities to lower your assessment.

Final Thoughts: Communication Is Key

The biggest tax mistakes often stem from a lack of communication. Major financial decisions like buying new equipment, selling property, setting up a trust, can all have tax implications. Yet, CPAs aren’t mind readers.

Before making big moves, check with your accountant. A quick conversation can help you avoid unnecessary tax bills and set you up for long-term financial success.

Want more expert insights? Subscribe to Beyond Bitewings and stay ahead of the game this tax season! For personalized tax guidance, contact the Edwards & Associates team today.

​Busting Common Tax Myths for Dentists

Taxes can be confusing, especially when so much misinformation is floating around online. Whether you’re scrolling through social media, chatting with colleagues, or just assuming something sounds right, it’s easy to fall for common tax myths – some of which could leave you with a hefty bill from the IRS.

As a dental professional, understanding tax laws is crucial to protecting your practice’s bottom line. From home office deductions to retirement withdrawals, we’re breaking down some of the biggest tax myths that could trip you up. Here, we separate fact from fiction and make sure you’re not caught off guard.

Myth #1: Retirement money is tax-free.

Many people assume that once they retire, their money is theirs to spend tax-free. Unfortunately, that’s not the case – most withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income. If you take out too much in a single year, you could even push yourself into a higher tax bracket. The only exception? Roth IRAs and Roth 401(k)s,which allow for tax-free withdrawals after age 59½, as long as the account has been open for at least five years.

Myth #2: Reporting dental supplies and lab fees under Cost of Goods Sold (COGS) reduces audit risk.

It’s a common misconception that classifying dental supplies and lab fees as COGS can lower the chances of an audit by reducing gross profit. However, misclassifying expenses can raise red flags with the IRS and lead to potential issues. ​ 

Myth #3: Large equipment purchases should be deferred until the fourth quarter for maximum tax benefits.

Many dental professionals believe that postponing significant equipment investments until year end maximizes tax deductions. In reality, the timing of such purchases should align with the practice’s operational needs rather than solely focusing on tax implications. 

Myth #4: Home office deductions are a red flag for audits.

There’s a lingering belief that claiming a home office deduction increases the likelihood of an audit. While this was a concern in the past, legitimate home office deductions, when properly documented, are acceptable and do not inherently trigger audits. However, keep in mind that you can only claim a home office deduction if you own a business. If you are an employee, this deduction is no longer available. 

Myth #5: Personal dental expenses are fully deductible.

Some assume that all personal dental expenses can be deducted from their taxes. However, only unreimbursed medical and dental expenses exceeding a certain percentage of adjusted gross income (AGI) are deductible. It’s crucial to understand these thresholds to avoid disallowed deductions. ​ 

Myth #6: Income from side gigs or online sales isn’t taxable.

Some people mistakenly believe that earnings from side jobs, freelance work, or online sales are tax-free. In reality, all income, regardless of the source, must be reported and is subject to taxation. Overlooking this can lead to underreporting and potential penalties. ​

Myth #7: Selling a dental practice is tax-free if reinvested.

Some dentists believe that proceeds from selling their practice are tax-free if reinvested into another venture. However, such sales are typically subject to capital gains tax, and proper planning is essential to manage the tax implications effectively. 

Myth #8: Casual labor payments don’t require tax reporting.

There’s a misconception that payments to temporary or casual workers don’t need to be reported. However, businesses are required to report payments to all workers on a Form 1099 if they total more than $600. ​

Myth #9: Government benefits like social security and unemployment are tax-free.

Many believe that Social Security and unemployment benefits come tax-free, but that’s not entirely true. Unemployment benefits are taxed at your normal income tax rate at the federal level and in most states, meaning you could owe taxes when filing if you don’t have them withheld upfront. Social Security benefits are taxed based on your total income – if you earn above a certain threshold from other sources (like retirement savings or part-time work), up to 85% of your benefits could be subject to income tax.

Tax laws are intricate and continually evolving. We can help ensure compliance and optimize you tax position, so reach out to us today for help. Relying on myths or outdated information can lead to unintended tax liabilities.​

Podcast Recap: Why Every Dentist Needs to Know Their Practice’s BAM

As a dental practice owner, you likely track production per hour, hygiene department performance, and claim filings – but are you paying attention to BAM? If not, you could be missing a crucial financial metric that helps ensure your practice stays profitable and supports your lifestyle goals.

In a recent episode of Beyond Bitewings, the team at Edwards & Associates, PC broke down BAM (Basic Amount of Money) and discussed what it is, why it matters, and how to calculate it accurately.

What Is BAM?

BAM stands for the Basic Amount of Money needed to operate your practice successfully. However, it’s not just a break-even number – it includes:

  • Overhead costs (rent, salaries, supplies, etc.)
  • Loan payments for practice purchases, equipment, or expansions
  • Owner compensation (including taxes and personal financial goals)
  • Profit to keep the business healthy

Think of BAM as a financial goal – the amount your practice needs to collect (not just produce) each month to cover all expenses while maintaining the income and lifestyle you want.

Why BAM Matters

Understanding BAM is essential for cash flow management and ensuring your practice is set up for success. It also plays a key role in staff bonus structures – since any revenue collected beyond BAM can often be used to reward the team.

Additionally, BAM isn’t just based on historical numbers. It should factor in expected expenses such as new hires, equipment purchases, and rent increases to give you an accurate picture of future financial needs.

How to Calculate BAM

To determine your BAM, you’ll need to account for:

  • All fixed expenses: Rent, payroll, utilities, supplies, insurance, and other overhead.
  • Debt payments: Loan repayments that aren’t reflected in your profit & loss statement.
  • Owner compensation & taxes: The amount you need to take home after covering all practice costs.
  • Future growth: Planned hires, equipment purchases, or operational changes.

BAM should be reviewed and updated annually to reflect any major financial changes, though adjustments – such as a gradual BAM increase (Baby BAM) – may be made in cases of significant shifts like hiring an associate or expanding operations.

The Difference Between BAM and Net Income

A common mistake is assuming that net income (the bottom-line figure on financial statements) reflects the actual cash needed to run a practice. However, BAM factors in non-cash expenses (like depreciation and amortization) and full loan payments, giving a clearer picture of financial needs.

Plan Ahead for Success

By understanding and tracking BAM, you’ll have a clearer financial goal for your practice and avoid surprises when it comes to cash flow. Whether you’re planning for growth, refining your bonus structure, or simply ensuring financial stability, BAM is a must-know metric for every dental practice owner.

Want to learn more? Listen to the full episode of Beyond Bitewings for expert insights and practical strategies!

Celebrating Our Team, The Heart of Our Success

Today, on Employee Appreciation Day, we want to take a moment to express our deepest gratitude to the incredible team that makes our Firm thrive.

Accounting isn’t just about numbers – it’s about people. And we are beyond fortunate to have a team of dedicated, talented professionals who go above and beyond every day to support our clients. Serving dental practices means juggling complex financial challenges, staying ahead of ever-changing tax laws, and ensuring each client gets the personalized attention they deserve. It’s not always easy, but you make it look effortless.

We see your hard work, dedication, and commitment to excellence. We know that busy seasons can be overwhelming, that unexpected client needs can disrupt even the best-planned schedules, and that the details of tax, accounting, and financial compliance demand constant focus. But through it all, you show up, problem-solve, and provide exceptional service that helps our clients’ practices succeed.

Beyond the work you do, we also appreciate the ideas, insights, and suggestions you bring to the table. Your voices matter. Whether it’s improving internal processes, finding new ways to serve our clients, or simply making our workplace better, we hear you, we value you, and we’re grateful for you.

So today, we celebrate you – the people who make our Firm what it is. Thank you for your passion, your expertise, and the care you put into everything you do. Your contributions don’t go unnoticed, and we couldn’t do this without you.

Here’s to you, today and every day! Happy Employee Appreciation Day!

Podcast Recap: Protecting Your Dental Practice from Embezzlement

Running a dental practice requires trust—trust in your patients, your team, and your financial systems. But what happens when that trust is violated? Embezzlement is a growing concern in the dental industry, and unfortunately, it’s more common than many realize. In a recent Beyond Bitewings, we sat down with Allen Schiff, CPA, CFE to discuss how dental practices can spot, prevent, and respond to fraud within their offices.

How Common Is Embezzlement in Dental Practices?

According to Allan, one in six dental practices will experience some form of embezzlement. Many dentists assume their practice is safe because they trust their employees, but the unfortunate reality is that fraud often comes from the person they trust most. The long-time, dedicated employee who arrives early, stays late, and manages the office finances is often the one with the most access and opportunity to commit fraud.

Signs That Embezzlement May Be Happening in Your Office

Many dentists don’t realize fraud is happening until it’s too late. Here are some red flags to watch for:

  • Overprotective control – An employee who doesn’t want anyone else handling financial matters, insists on doing everything themselves, and resists oversight.
  • Unexplained lifestyle changes – A staff member suddenly making expensive purchases or taking extravagant vacations without a visible increase in income.
  • Avoiding time off – Someone who refuses to take vacation or sick leave may be afraid that their fraudulent activities will be discovered if someone else steps in.
  • Unusual adjustments in financial records – Frequent patient account adjustments, missing deposits, or discrepancies between collections and bank statements.

How to Prevent Embezzlement in Your Practice

While no system is foolproof, there are steps dentists can take to minimize the risk of fraud in their offices:

  • Segregate Financial Duties – No single employee should have complete control over financial transactions. Have different team members handle collections, deposits, and adjustments.
  • Monitor Daily Reports – Print and review your day sheet at the end of each day. Even if you don’t analyze it in detail, knowing that you check will discourage fraud.
  • Review Bank Statements Personally – Open and review your practice’s bank statements before handing them off to anyone else. This small step can deter an employee from attempting fraud.
  • Enforce Strong Internal Controls – Use software permissions to restrict access to financial transactions and ensure that no one can alter records without oversight.
  • Conduct Surprise Audits – Randomly reviewing financial records and logs can catch discrepancies early and keep employees on alert.

What to Do If You Suspect Fraud

If you notice warning signs of embezzlement, do not confront the employee immediately. Instead:

  1. Gather evidence quietly – Work with an accountant or fraud examiner to review your financial records before taking action.
  2. Do not fire the employee right away – While your first instinct may be to remove them immediately, fraud investigators recommend keeping them on staff until a thorough investigation is completed.
  3. Seek professional guidance – A Certified Fraud Examiner (CFE) can help you collect admissible evidence and even obtain a written confession.

A Real-Life Case of Dental Practice Fraud

During the podcast, Allan shared a shocking case where a long-time dental employee embezzled more than $400,000 in implant supplies. She sold them on eBay, and the only reason the fraud was discovered was because the implant vendor congratulated the dentist on their high-volume purchases—purchases they had no idea were happening. The perpetrator was eventually caught and sentenced, but it was a painful and costly lesson for the dentist involved.

Embezzlement is a real and growing threat to dental practices, but awareness and strong financial controls can help mitigate the risks. If you own a practice, take the time to review your financial processes, set up safeguards, and work with professionals who can help you protect your business.

For more insights and tips on managing the business side of dentistry, listen to the full episode of Beyond Bitewings or contact our team for guidance. Your financial security is worth the extra vigilance!

BOI Filing Requirements Are Back!

The Beneficial Ownership Information (BOI) filing requirements under the Corporate Transparency Act (CTA) are back in effect, with a new compliance deadline of March 21, 2025. This extension follows recent legal developments, including the lifting of a previous injunction by a Texas federal judge, allowing the enforcement of the CTA to proceed. 

For most dental practices, BOI filing is straightforward but requires careful attention to detail to ensure accuracy and the protection of sensitive business information. If you choose to handle the filing yourself, the Financial Crimes Enforcement Network (FinCEN) provides a secure and user-friendly electronic filing system on their website. If you would like our help with your filing, reach out as soon as possible so we can get started before the deadline. 

NOTE: Beware of vendors with offers that seem “too good to be true.” Since filing requires you to provide personal data, unscrupulous providers can easily steal your identity, putting your business and personal information at risk.

To assist you in this process, our team at Edwards & Associates offers comprehensive support to ensure your filing is complete, compliant, and stress-free. We stay abreast of the latest regulatory changes and are prepared to guide you through every step of the BOI reporting process.

Key Filing Information:

  • New Deadline: March 21, 2025, for most reporting companies.
  • Filing Method: Electronically via FinCEN’s E-Filing system. 
  • Required Information:
    • For Your Practice: Legal name, any trade names, primary U.S. business address, jurisdiction of formation, and tax identification number.
    • For Each Beneficial Owner and Applicant: Full legal name, birthdate, residential or business address, and a valid identification number (e.g., passport or driver’s license).

Non-compliance can result in significant penalties, including daily fines of $606 and potential criminal charges. To avoid these risks, we recommend addressing your BOI filing obligations right away.

For personalized assistance or to learn more about how we can help manage your BOI filing, please contact us today so we can get started on your filing. 

Note: This information is based on the latest available guidance as of February 20, 2025. For the most current updates, please refer to FinCEN’s website.

What You Need to Know Before Buying a Dental Practice

Expanding your dental practice portfolio through acquisition requires a strategic approach that builds upon your existing experience. If you currently already have one or more practices, you already know quite a bit about the dental industry, but each acquisition presents unique challenges and opportunities. Here’s a guide to assist you prepare for, and get through, the process successfully:

1. Strategic Alignment and Market Analysis (6-12 Months Before Acquisition)

  • Define Acquisition Objectives: Clarify your goals for expansion. Do you want to increase market share, expand the services you provide, or enter a new part of town or entirely new area.
  • Market Research: Analyze target markets to identify practices that complement your existing operations or give you an opportunity to meet one or more of the goals you have identified. Be sure to consider factors such as local competition, patient demographics, and market demand.

2. Financial Assessment and Valuation (6-9 Months Before Acquisition)

  • Financial Due Diligence: Examine target practices’ financial records, including profit and loss statements, tax returns, and cash flow analyses, to assess profitability and financial health.
  • Practice Valuation: It is important to employ the correct valuation methods which can include income-based, market-based, or asset-based approaches to determine a fair purchase price. At Edwards & Associates, we have evaluated scores of practices for clients looking to expand and would love to help you by providing an objective assessment of the practice(s) you want to acquire.

3. Operational Evaluation (4-6 Months Before Acquisition)

  • Patient Base Analysis: Review the number of active patients, retention rates, and demographics to evaluate the potential for growth and integration with your existing patient base.
  • Staff Assessment: Evaluate the current team’s roles, experience, and compatibility with your practice culture. Retaining skilled staff can help smooth the transition and maintain patient continuity.
  • Facility and Equipment Inspection: Assess the condition of dental equipment, technology, and the facility itself and make a list of any necessary upgrades or investments.

4. Legal and Regulatory Considerations (3-4 Months Before Acquisition)

  • Compliance Review: Ensure the practice you are evaluating adheres to all regulatory standards, including licensing, OSHA regulations, and HIPAA compliance.
  • Contractual Obligations: Examine existing contracts, such as leases, vendor agreements, and service contracts, to understand ongoing commitments and any limitations to your plans.

5. Negotiation and Structuring the Deal (2-3 Months Before Acquisition)

  • Deal Structure: Decide between asset purchase or stock purchase agreements, considering tax implications and liability concerns.
  • Negotiation: Engage in discussions to agree on terms, including purchase price, payment structure, and transition support from the seller.

6. Financing the Acquisition (2-3 Months Before Acquisition)

  • Explore Financing Options: Investigate various financing avenues, such as traditional bank loans, SBA loans, or private lenders, to fund the acquisition.
  • Financial Projections: Develop detailed financial projections to show lenders the acquisition is going to be profitable and viable for the long term.

7. Integration Planning (1-2 Months Before Acquisition)

  • Transition Strategy: Create a comprehensive plan outlining how the acquired dental practice will be integrated into your existing operations, including branding, systems, and processes.
  • Communication Plan: Develop a plan to inform and reassure patients and staff about the transition to maintain trust and continuity.

8. Post-Acquisition Management (Upon Acquisition and Ongoing)

  • Monitor Performance: Regularly assess key performance indicators to ensure the acquisition meets projected goals.
  • Continuous Improvement: Seek feedback from staff and patients to identify areas for enhancement and ensure the combined practices operate seamlessly.

By following this structured approach, you can effectively expand your dental practice portfolio, leveraging your existing expertise while carefully managing the complexities of acquiring an additional practice. We specialize in helping dental practices through this process and can provide valuable best practices, insights and advice whether you are just starting to think about expanding by purchasing an existing practice or have already identified one you want to buy. Reach out to us today so you are prepared and not caught off guard by unexpected roadblocks.

Protecting Your Dental Practice from 2025 Tax Scams

In 2025, IRS-related scams are becoming increasingly sophisticated, requiring vigilance and proactive measures to safeguard your practice and personal finances. Even the savviest of professionals can fall prey to tax scams, so here is the latest information about how these scams work so you (and your family and friends) can avoid becoming a victim.

Key Tax Scams Targeting Professionals in 2025

  1. Phishing Emails and Texts: Scammers impersonate the IRS via email or text, urging you to click malicious links or provide sensitive information.
    • The IRS never initiates contact this way. Exercise extreme caution with unsolicited digital communications.
  2. Phone Scams: Fraudulent callers posing as IRS agents threaten legal action or demand immediate payment, often via unconventional methods like gift cards or wire transfers.
    • The IRS will never demand immediate payment over the phone or resort to threats.
  3. Fake Tax Preparers (“Ghost Preparers”): Unqualified individuals offer tax preparation services but refuse to sign the return. This leaves you liable for any errors or fraud.
    • Always verify your preparer’s credentials and ensure they will sign your return.
  4. Identity Theft: Criminals use stolen personal information to file fraudulent tax returns and claim refunds in your name.
    • Filing early is a proactive defense.
  5. Social Media Scams: Misinformation about tax credits or refunds spreads rapidly on social media, enticing individuals to share personal data.
    • Always verify information through official IRS sources or a trusted professional, like us.

Who Is At Risk?

While anyone can be targeted by tax scams, certain groups are particularly vulnerable:

  • Elderly Taxpayers: Seniors are often targeted because they may be less familiar with digital threats and more likely to trust official-sounding communications.
  • New Taxpayers: Young adults or those filing taxes for the first time may be unaware of IRS procedures and more susceptible to scams that appear legitimate.
  • Small Business Owners: Juggling multiple financial responsibilities may make them more likely to fall for scams, especially those targeting payroll or W-2 information.
  • Non-English Speakers: Individuals with limited English proficiency may be more vulnerable to scams due to language barriers.
  • High-Income Earners: They may be targeted with aggressive tax shelter schemes or promises of unrealistic refunds.
  • Taxpayers Expecting Refunds or Credits: Those anticipating Economic Impact Payments or Recovery Rebate Credits may be more susceptible to scams promising these benefits.
  • Social Media Users: Active social media users may encounter scams spreading misinformation about tax credits or refunds.
  • Victims of Data Breaches: Individuals whose personal information has been compromised in data breaches are at higher risk of identity theft and fraudulent tax return filings.

Essential Protective Measures

It is often those that think they can’t be fooled by a scam like this that fall for them, so don’t think you are immune.

  • Verify All Communications: The IRS primarily initiates contact via mail. Be highly suspicious of unsolicited emails, texts, or calls.
  • Choose a Reputable Tax Professional: Work with a reputable CPA firm (like Edwards & Associates, of course) with specific expertise in serving dental practices.
  • Protect Personal Information: Shred sensitive documents, use strong passwords, and monitor your financial accounts regularly.
  • Report Suspicious Activity: Report any scam calls or phishing emails to the IRS immediately by emailing phishing@irs.gov.

Key Tax Considerations for Dental Practices

While safeguarding against scams is important, remember to optimize your legitimate tax planning too. We can help you:

  • Identify Practice-Specific Deductions: Understand deductions unique to dental practices, such as those related to equipment, continuing education, and professional liability insurance.
  • Plan for Retirement: Implement robust retirement planning strategies to minimize your long-term tax burden.
  • Choose the Best Business Structure: Ensure your practice is structured in the most tax-advantageous way.

Staying informed and proactive is essential to protect your financial interests. We are dedicated to providing expert tax and accounting services tailored specifically to the needs of dental professionals, so contact us today to discuss how we can help you safeguard your practice and optimize your financial strategies.

2025 IRS Rules for Vehicle Depreciation

If your dental practice uses business vehicles, a recent IRS update could affect your tax deductions. For the first time in three years, the IRS has lowered depreciation limits for 2025. These changes, tied to inflation and market trends, impact how dental professionals claim vehicle-related expenses. Here’s a simple breakdown.

Lower Depreciation Limits for Business Vehicles

Each year, the IRS adjusts vehicle depreciation limits. For vehicles placed into service in 2025, the new limits are:

  • With First-Year Bonus Depreciation:
    • Year 1: $20,200 ($200 lower than 2024)
    • Year 2: $19,600 ($200 lower than 2024)
    • Year 3: $11,800 ($100 lower than 2024)
    • Each following year: $7,060 ($100 lower than 2024)
  • Without First-Year Bonus Depreciation:
    • Year 1: $12,200 ($200 lower than 2024)
    • Later years: Same as above

For dental professionals deducting vehicle expenses, this marks a shift after several years of increases.

What About Leased Vehicles?

If you lease a vehicle for your practice, the IRS requires an income inclusion adjustment to ensure fair tax treatment between leased and owned vehicles. The amount varies based on the vehicle’s market value and lease duration. If you’re leasing, talk to your accountant to see how this affects your tax planning.

Why Did the Limits Change?

The IRS adjusts depreciation limits based on market trends. Recent Bureau of Labor Statistics data shows:

  • Used car prices increased by 1% in the past year.
  • New car prices dropped by 0.3% in the same period.

These shifts influenced the IRS’s decision to reduce depreciation limits.

How Does This Affect Your Dental Practice?

  • Tax Planning – Thinking of buying or leasing a vehicle? These updates may impact your tax benefits. Check with your accountant for the best approach.
  • Compliance – If you lease, be sure you’re calculating required income inclusions to stay IRS-compliant.
  • Budgeting – Since depreciation affects cash flow and tax deductions, plan accordingly to avoid surprises.

What Should You Do Next?

If you’re considering purchasing or leasing a business vehicle in 2025, understanding these IRS updates is key to maximizing deductions and avoiding tax pitfalls. Need help? Contact us today for advice on tax strategies and vehicle deductions for your practice.