dental practice

What are Asset Protection Services?

Asset protection services exist to help place your dental practice’s assets in a position where they are all but untouchable by those you do not wish to have access to them. In the world you live in, one that’s rich with dangers and potential financial pitfalls, protecting your dental practice’s assets and wealth is more important than you may realize – whether you have a large sum of assets or not.

What Risks Impact Your Assets?

Most people are surprised to learn about the wide range of risks they face when it comes to securing and protecting assets. These risks include:

  • Unemployment
  • Disability
  • Death
  • Age
  • Health
  • Divorce
  • Retirement
  • Layoffs
  • Injury
  • Medical Expenses
  • Litigation
  • Judgments
  • Legal Expenses

The list goes on and on. There are hundreds of risks, large and small, that place your practice’s assets at risk every day. That’s why it’s so important to consult with a financial planner or dental accountant that has experience providing asset protection services.

How Can You Protect Your Assets Through Asset Protection Services?

First and foremost, consider using asset protection services from a professional experienced in protecting wealth and assets. Asset protection services involve a blend of financial planning and insurance using specialists such as dental CPAs, attorneys, estate planners, insurance experts, financial planners and/or asset protection specialists.

Careful financial planning is the most important thing you can do to protect your practice’s assets now, and in the future. This is putting your head together with a professional who specializes in asset protection services, developing a plan to manage your existing assets, accumulate future assets, minimize risks and sustain growth over time. Important tools in your arsenal for your goals of financial growth and asset protection include insurance, proper planning and attention to detail.

Insurance

There are many types of insurance products on the market today. There is insurance coverage that protects your dental practice’s assets themselves. There is also insurance coverage that protects you from liability in the event that someone is injured by or on one of your assets. There’s even insurance to cover liability related to professional dental services you offer. In other words, there’s a type of insurance for many different contingencies and you should carefully consider which types of insurance serve to best protect your assets today and in the future. Having adequate insurance, however, is an asset protecting contingency that must be covered. Other insurance to consider includes medical insurance, loss of income insurance, life insurance and disability insurance.

Financial Planning

Financial planning includes components designed to reduce your risks, increase the value of your assets and sustain growth as time goes by. It involves estate planning, wealth protection, tax minimization strategies and wealth recommendations to maximize return. It’s important to work with qualified financial planners with specific experience in asset protection services for this critical task.

You want to know that your future is protected and assured. One way to increase that likelihood is by taking steps today to protect your dental practice’s assets and wealth for the long term by considering the use of asset-protection professionals. Life takes unexpected turns all the time. You can rest much easier knowing that you’re covered for most of the contingencies that could ever come your way.

Business Risks with BYOD Workplaces

Creating a BYOD workplace for your dental practice offers some distinct advantages to business in the form of improved employee productivity and engagement. These are not small benefits in today’s workplace.

Unfortunately, it brings its own share of risks to the table as well. These are just a few of the risks you should consider carefully before making the move to a BYOD workplace as they may have a significant impact on your dental practice.

What Could Go Wrong?

Just as you’d be wary of employees who come to work sick with viruses, you should also be wary of employee devices that may be infected with viruses you can’t see. While most software looks for bad things on the outside of the network, it is still vulnerable to dangers within. BYOD policies make it all too easy for employees to unknowingly expose the entire work network to viruses, malware, and more.

Other risks include:

  • Theft of Device
  • Loaning of Device
  • Inadequate Device Security
  • Information Remaining on Devices when Employee Upgrades (or passed along to children)

If these devices fall into malicious hands, the consequences could be devastating for your dental practice in terms of negative financial repercussions and beyond-repair brand reputation damage. This may be particularly detrimental for businesses, like those in the medical, insurance, and financial industries, where a sensitive and personal information data breach could cause undue harm, including identity theft, to the parties involved.

Preventing a Worst Case Scenario

While not all dental practices can accommodate BYOD policies in the workplace, those that do, must have a set of standards for making the transition as seamless and low-risk as possible.

  • Create standards and policies that establish and define how the intellectual property of the business is to be accessed and treated on these devices.
  • Create a plan of action, in writing, for handling the loss, theft, passing, or elimination of employee devices.
  • Audit the program frequently to make sure it’s working in the best interest of the practice.
  • Finally, understand that all businesses aren’t cut out for this specific work perk. Some businesses, such as legal entities, financial services business, medical firms, and insurance firms face huge legal liability risks when bringing mobile phones into the midst.

Before you decide to embrace the benefits of a BYOD workplace solution, make sure you fully expose the risks they represent for your dental practice.

 

18 Accounting Terms You Should Know

 

It’s back-to-school time. Learning is not just for children. Why not take a page from the kids’ books and do some learning of your own?
QuickBooks is easy to use, intuitive and flexible. But it is not an accounting manual or class or tutorial. If your dental practice is exceptionally uncomplicated, you might get by without knowing a lot about the principles of bookkeeping.

Still, it helps to understand the basics. Here’s a look at some terms and phrases you should understand.

  1. Account. You’ll set up financial accounts like checking and savings in QuickBooks, but in accounting terms, this refers to the accounts in your Chart of Accounts: asset, liability, owners’ equity, income and expense.

    Fig 1 25 Accounting Terms You Should KnowFigure 1: A QuickBooks Chart of Accounts

  2. Accounts Payable (A/P). Everything that you owe to vendors, contractors, consultants, etc. is tracked in this account.

  3. Accounts Receivable (A/R). This account tracks income that hasn’t been realized yet, Accrual Basis. This is one of two basic accounting methods. Using it, you record income as it is invoiced, not when it’s actually received, and you records expenses like bills when you receive them. Using the other method, Cash Basis, you would report income when you receive it and expenses when you pay your practice’s bills.
  4. Asset. What physical items do you own that have value? This could be cash, office equipment and real estate. In QuickBooks you’ll be managing two types. Current Assets are generally used within 12 months (or you could convert them to cash in that length of time). Fixed Assets refers to belongings like vehicles, furniture and land, property that you probably won’t use up in a year and which usually depreciates in value. Depreciation is very complex; you may need our help with that.

  5. Average Cost. This is the inventory costing method that programs like QuickBooks Pro and Premier use to calculate the value of your stock.

    Fig 2 25 Accounting Terms You Should KnowFigure 2: QuickBooks provides a Statement of Cash Flows report.

  6. Cash Flow. This refers to the relationship between incoming and outgoing funds during a specific time period.

  7. Double-Entry Accounting. This is the system that QuickBooks uses � that all legitimate small business accounting software uses. Every transaction must show where the funds came from and where they went. Each has a Credit (decreases asset and expense accounts) and Debit (decreases liability and income accounts) which must balance out (other types of accounts can be affected).

  8. Equity. This refers to your dental practice’s net worth. It’s the difference between your assets and liabilities.

  9. General Journal. QuickBooks handles this in the background, so it’s unlikely you’ll ever be exposed to it. We sometimes have to create General Journal Entries, transactions required for various reasons (errors, depreciation, etc.) that contain debits and credits. Please leave that to us.

  10. Item Receipt. You’ll create these when you receive inventory from a vendor without a Job. QuickBooks often associates customers with multi-part projects that you’ve taken on, like a kitchen remodel.

  11. Net income. This is your revenue minus expenses.

  12. Non-Inventory Part. When you purchase an item but don’t sell it or you buy something and resell it immediately to a customer, this is what it’s called. It’s merchandise that isn’t stored by you for future sales.

  13. Payroll Liabilities Account. QuickBooks tracks federal, state and local withholding taxes, as well as Social Security and Medicare obligations, that you’ve deducted from dental employees’ paychecks and will remit to the appropriate agencies.

    Fig 3 25 Accounting Terms You Should KnowFigure 3: QuickBooks helps you track and remit Payroll Liabilities.

  14. Post. You won’t run into this term in QuickBooks. It simply refers to recording a transaction within one of your accounts.
  15. Reconcile. QuickBooks helps you with this. It’s the process of making sure your records and those of your financial institutions agree.

  16. Sales Receipt. This is how you record a sale when payment is made in full during the Statement. You’ll generally use invoices to bill customers in QuickBooks, but you can also send statements, which contain transaction information for a given date range.

  17. Trial Balance. This standard financial report tells you whether your debits and credits are in balance. Should you run this report and find a problem, let us know right away.

  18. Vendor. With the exception of employees, QuickBooks uses this term to refer to anyone who you pay as a part of your dental business operations.

These are just a few of the terms you should recognize and understand. We hope you’ll contact us when you need help understanding how the accounting process fits into your dental practice’s workflow.

5 File Sharing Habits Your Dental Office Must Break

With so many big names in business and industry revealing that they’ve been hacked, despite all their resources to combat this type of behavior, owners of all small businesses, yes even dental practices, need to be especially vigilant regarding their own security and file sharing measures to avoid the nightmare a hacking event presents to their businesses. Continue reading

5 Tax-Related Steps When Hiring Your First Employee

Be prepared for a mountain of paperwork, much of it related to income taxes. 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.