Since 1984, Cain Watters & Associates (CWA)’s specialized work within the dental industry supports the education and growth of thousands of clients in all 50 states. Its comprehensive financial services integrate sound accounting practices and proactive tax planning to help clients meet their financial potential.
As the dental industry continues to boom, practices everywhere are experiencing record treatment acceptance rates that are driving high production numbers. On the surface, it would seem 2022 could be a banner year.
Yet, that is not necessarily the case. This year is marked by inflation that continues to rise, quickly turning into higher overhead, which is eating into profits despite higher production.
Coupled with overall economic and market uncertainty, current conditions necessitate making the most of this profitable window while pent-up demand is high. To do this, Cain Watters & Associates CPA Angie Svitak encourages her clients to adopt a growth strategy that focuses on growing profits more than simply increasing production.
Selling Your Dental Practice to a Doctor vs. Private Equity
Whether you’re 100% set on selling your dental practice or just starting the exploration process, there are many factors to consider. Do you have another dentist lined up to purchase your practice? Should you sell to a private equity group or DSO? Is now the right time to sell in the first place? Why do you want to sell?
The Department of Labor stated that consumer prices rose 5.4% during the 12 months ending in September 2021. Inflation at a wholesale level climbed 8.3% from August 2020 to August 2021. Most notably, the Social Security Administration announced that beneficiaries will get a cost-of-living adjustment in 2022 of 5.9%, the largest increase in decades. It’s becoming clear that inflation fears are substantiated.
There is at least one thing everyone in the dental industry can agree on—the last few years have been a wild ride. As if the COVID-19 chaos of 2020 and delta variant of today weren’t enough, practice owners have been challenged with navigating another issue, one that could last well after the virus is contained.
Is Now the Right Time to Add an Associate Dentist?
Adding a doctor to a dental practice is one of the biggest decisions business owners can make, and for good reason. A new associate will have a huge impact on the practice’s culture, operations and, of course, the bottom line. It has the potential to spur growth, invigorate staff and pay big dividends for years to come. On the other hand, bringing in an associate before the owner or the practice is ready often leads to trouble.
As a business owner, you know how important it is to have access to extra capital when you need it. Maybe you want to add some new equipment to your practice, make building renovations, or even buy the building you’ve been leasing. To do it, you need purchasing power. For most practice owners, the best way to get more of it is through a loan.
The advantages of tax-deferred retirement plans are very appealing, making it easy for them to be the first choice of a destination for your money to accumulate. But because of restrictions and limits associated with these accounts, it’s important to fund other vehicles in conjunction as part of your overall wealth accumulation strategy.
What to Do with Extra Cash Flow from Post-Pandemic Demand
It’s hard to believe it has been more than a year now since COVID-19 encroached into our professional and personal lives, bringing with it a whirlwind of mandatory lockdowns, dental practice closures, and toilet paper shortages.
At the end of the day, we all want to know the secret that has led others to financial success–surely, they’ve figured out a mysterious formula or discovered a secret sauce. We’re all just looking for the easy math that gets us to a comfortable retirement. Is it really as simple as that?
We’ve finally said goodbye to 2020. Given the unpredictable nature of the previous year, many are breathing a sigh of relief, and 2021 is being welcomed as the year of opportunity and a chance to get back on track.
CPAs at Cain Watters & Associates have noticed recent trends in the housing market indicating now is a great time to buy a home. In August and for the first time since 2017, the market achieved double-digit year-over-year listing price growth.
According to Caring.com’s 2019 survey, 57 percent of adults in the U.S. haven’t created estate planning documents. More alarmingly, only 1 in 5 of millennials (those currently between 26 and 40 years old) have an estate plan in place.
While tax planning strategies should be implemented throughout the year, please be sure to consider the following before December 31 to help minimize your tax liability for 2019 and to proactively plan for 2020.
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