Accounting Services for Dentists: How to Find the Right Partner

Finding the right partner to help you manage the accounting, tax and finance needs of your dental practice is an important task. Such a partner will provide you with strategic guidance that helps you grow your practice, enhance profitability and provide higher levels of care to your patients.

Relying on your local CPA might be all well and good when you’re just starting out. But when your practice starts to grow, bringing in a more specialized accounting service for dentists can unlock all kinds of benefits.

To find the right partner, it’s important you know what qualities to look for. In this overview, we’ll explore the nuances that make dental accounting different, what to look for in an accounting service for dentists… and why it’s so valuable to have a specialized advisor in your corner.

Dental Accounting: What’s Different?

Dental practices face several unique accounting concerns compared to other businesses, especially those outside of the healthcare industry. If you’re taking a relatively barebones approach to managing your finances, these might not affect you too much. Once you start getting more serious, however, you’ll definitely need a plan for how you approach these nuances.

Some of the factors that make dental accounting different include:

• HIPAA: Understanding how your patient and billing records intersect with your accounting processes is vital in ensuring your practice remains compliant with HIPAA regulations. Your accounting software must be HIPAA compliant, and your accounting staff must understand their responsibilities in safeguarding patient data.
• Business structures: Knowing how to effectively structure your practice is key to your long-term success. Decisions such as how you own your business’s real estate, how to handle profit allocations between partners, and more can all have an important impact on tax strategy and liability protections.
• Insurance reimbursements: A significant element of your practice’s revenue is likely driven by insurance reimbursements. This can make managing accounts receivable challenging and demands you take a systematic approach toward coding and billing procedures to avoid any revenue loss. Revenue cycle enhancement projects can be helpful in driving performance improvements in this area.
• Revenue recognition: Dentists often provide services over multiple visits (e.g., orthodontic treatments or cosmetic procedures). This requires careful revenue recognition to match income with the timeline of service delivery. Using accrual accounting is often beneficial here.
• Asset management: Dental practices are full of expensive equipment, from x-ray machines to dental chairs. Managing depreciation schedules and planning for replacements is essential.

All of these factors, combined with the other nuances of healthcare accounting, contribute to an accounting environment that can be confusing to accounting and bookkeeping professionals without experience in the dental industry. These complexities are why many dentists turn to specialized dental CPAs.

Of course, plenty of CPA firms offer services for dentists. But how can you identify one that’s a good match for your practice?

What to Look for in a Dental CPA

What sets a great accounting service for dentists apart from a poor one?

In our view, there are several traits dental practices should prioritize in their search for a new CPA. One of the most important points is determining the depth of a firm’s experience in the dental industry. It’s easy for any CPA to file a tax return or work on a set of books for a dental practice. These are transactional services that, while they have to be done, add little long-term value to your business.

Look for dental CPAs that have a long track record of providing actionable, strategic advice to dental practices. You want a partner that truly understands the industry and goes beyond the day-to-day tasks of dental bookkeeping and tax preparation. At James Moore, we’ve advised dental practices through mergers and acquisitions, succession planning, due diligence and more.

Our goal isn’t just to help you file your taxes; it’s to partner with you to build a better practice. That stems from a willingness to invest in your relationship — another important trait of every great dental CPA. Instead of a firm that simply emails you your financial statements every month, find a partner who’ll walk you through them and help you understand what they mean for the profitability and cash flow of your dental business.

The partner you work with should also be responsive to your needs. Some firms might be too small to provide that high level of service. Others might be too large and can make you feel like you’re being bounced around different departments. Ideally, you want a consistent point of contact who’ll lead the relationship and pick up the phone when you call, and who’ll stay on top of unfolding regulations to make sure your practice stays ahead of the curve.

The Value of a Specialized Dental CPA

You’ll likely pay more to work with a specialized dental CPA than you would to work with a generalized CPA. In accounting, much like dentistry, specialized knowledge tends to be worth the investment. You’d never suggest someone go to a dentist who cuts corners because they’re the cheapest dentist in town; you should think about your choice of accountant in the same way.

One area in which a specialized accounting service for dentists provides value is in helping you benchmark the performance of your practice against comparable dental offices. Dental CPAs work with a lot of dentists, and they’ll be able to use that experience to help you understand where you have the most opportunity to strengthen your practice.

In addition to helping you contextualize the performance of your business, a specialized dental CPA can also guide you through the changes in the industry. Whether it’s understanding how to embrace new technologies, evaluating whether private equity is a good fit for your business, or helping you add new providers and expand, dental CPAs bring the expertise you need to make well-informed decisions.

James Moore: Trusted Accounting Services for Dentists

At James Moore, we’re proud to work with a wide range of dental practices across Florida, the southeast, and beyond. Our dedicated team of dental CPAs provides accounting, advisory, and tax services to all kinds of dental practices: from small, family-run businesses to well-established dental groups with multiple office locations.

Our clients speak highly of our professionals. Here’s what Nicholas J. Cassisi, D.D.S., M.D. has to say about working with our dental CPAs:

“I have used James Moore and Co. as my accountants for a number of years and as a busy practicing physician, I have been impressed on how quickly they respond to any and all of my inquiries, either by email or by phone. It has always been within the same day, and often within the same hour… They are extremely helpful and professional.”

If you’re looking for a new accounting service for your dental practice, reach out to a James Moore advisor today.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.