Most Common Mistakes That Lead to Lawsuits for Dental Practice Owners

For a dental practice owner, a lawsuit can have a devastating impact, both on company moral and on company finances. The longer you stay in business, the higher the probability that your company will be sued at some point in time. There is no surefire way to prevent every lawsuit; however, there are some common mistakes that dental practice owners make that increase the likelihood of a lawsuit. Avoiding these common mistakes will decrease your likelihood of becoming the defendant in a lawsuit. Continue reading

How to Enter CEREC Purchase Into QuickBooks

Californial Dental CPAWe were recently approached by a dentist who bought a used CEREC and put it on a newly opened rewards credit card at 0% for 12 months. They were planning on paying $2,000 -3,000 per month and do a balloon payment at the end, but weren’t sure how to enter it into QuickBooks. He admitted that while his balance sheet is far from perfect, he tried to ensure his reporting was at least accurate. He did not want to enter a $45,000 laboratory charge as it would screw up his reporting and be inaccurate from an accounting perspective. He wanted the monthly payments to be classified as Lab Expenses, but wasn’t sure exactly what to do. Continue reading

Warning Signs That Your Employees Are Stealing From You

Fraud in a Dental PracticeIn dental practices, like in any business, fraud can go on undetected for a long time if the warning signs are ignored.  Some of the common warning signs of fraud are:

  1. A sudden unexplained shortage in the cash account. It can lead to checks being returns, late tax payments, and supplier complaints of lack of payment.
  2. A drop in patient fees and profit margins. The fraudster may not be recording patient fees in the practice management system and pocketing the fees. Continue reading

Dentist Opening New Practice Needs Bookkeeping Advice

A dentist who was about to open their first dental office approached Only for Dentists for advice. Their original plan was to do all of their monthly accounting and then hire a CPA for the annual returns. They were getting close to their opening date and their anxiety was growing, wondering if it was really worth it to save a little money. They were quoted by a firm for $300 monthly retainer to do everything for them, but weren’t sure if that was reasonable or not.

This is a very exciting time in a dentist’s career. Bassim Michael, dental CPA and founder of Only for Dentists, had the following suggestions for this new dentist. He recommended that if the dentist has the time, is willing to learn how to use QuickBooks and makes sure it is set up correctly, then it is completely fine to try it himself. Investing the time in set up and training from the beginning can help save a lot of time and heartache down the road. Once the file is set up, a CPA should review the file on a quarterly basis to make sure that the books are maintained correctly and to get proper advice and planning. From our experience, if the QuickBooks file is not set up correctly, clean ups could be more costly than if the practice had outsourced that function.

Dealing with a dental CPA can add special value, since their financial and tax knowledge is tailored to a practice’s specific needs.

Please contact us if you need help with your start-up practice’s financials.