Thursday, September 27, 2012

Will CPA Meeting Notes as Dental S-Corp Meeting Minutes?

I am the only member of an S-Corp. I need help with regards annual corporate meeting and keeping of minutes.

What do you do in an annual corporate meeting when you are the only member?

What makes up the agenda/minutes of these meetings?

Does an attorney need be present?

I have read that the annual CPA meetings could count as the corporate meeting, do you have a different view?

I've often said that the minutes we prepare for our client meetings have sufficed under IRS audit and should suffice as "corporate" minutes. That said, this is for IRS purposes when they audit and want to make sure the taxpayer is treating their corporation as they should.

I can't speak for any other legal purpose like a lawsuit; however, we have had clients with legal actions, domestic, partnership issues, etc., and when "minutes" have been requested these have been provided and it's never been a problem, meaning, there's never been a response to say these aren't proper minutes or not in proper form.

The minutes we prepare on our letterhead, have the client’s name (LLC, PCL, PLLC, PA, PC, Inc., etc.), location, date, time and attendees. Then we either attach or note agenda and what was discussed, decided, tasks assigned, etc.

Some of the items we have on every agenda: year-to-date results, projections, year-to-year comparisons, other corporate matters, individual tax projections and other practice-business issues. Of course with each client there can be other issues added to the agenda based upon their specific needs.

Again, if asked to produce for an IRS audit, these have sufficed. Same with other legal issues I mentioned above. Check with your attorney and\or CPA to make sure they are comfortable with this.

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Thursday, September 20, 2012

Looking forward to 2013 – New Year’s Resolutions for the Dental Practice

As you know, from time to time, we ask our trusted friends to write articles for us that we feel would be valuable for you. DC Dental Supply Company shares our values of integrity and doing what is right for their clients. Enjoy.

Looking forward to 2013 – New Year’s Resolutions for the Dental Practice

By Howie Friedman, CPA CFO- DC Dental

“I’d like to work harder and make less money next year” - No One. Ever

As 2012 draws to a close, we hope it has been a prosperous year and one of growth. Looking ahead to 2013, we know you want to find more time to spend with your family, more time to pursue other interests and face it (though we know you love them), less of your patients.  And ultimately, to increase revenue and decrease overhead. We’ve compiled the following handful of resolutions that should help with just that. And obviously, there is no need to wait for the New Year to start implementing!

Before we begin, a one question quiz: What is your practice overhead? Is it 60%? Maybe 70%? As low as 40%? That would be spectacular. If you don’t have your overhead numbers pinned down, it’s time for a meeting with your CPA. According to the Dental Sales Academy, in 1999, average dental practice overhead was at 58% of revenue. When we fast forward to 2011, it jumps to a steep 69%. If your overhead is looming in that ballpark or worse, it’s time to think, what is my blueprint for 2013 to bring that number back to earth?
Do Not Collect $200, Do Not Pass Go. -  A dental office that decreases 10% in collections over 12 months loses 20% of its value. That’s right, the numbers are not linear. It hurts sometimes to make the collection call but that outstanding bill is worth more than face value.  Collect your $200 and you’ll find your practice going further.

Diversify. Diversify. Diversify.  Thoreau was a smart man but he wasn’t a 21st century dentist! Resolve to add or increase practice-boosters that help differentiate your practice such as Invisalign or Six-Month Smiles-type ortho services. Is it time to think about offering Botox or sleep apnea aid? Take the leap and look into training. Institutions like the American Academy of Facial Esthetics, among others, offer courses around the county. It’s the high-margin/low-time expenditure services that can make a big difference in your year. Be the anti-Thoreau in 2013.

Get Hygienic - You may be missing major revenue opportunities right in your hygiene bay.  According to research conducted by the Dental Sales Academy, a properly utilized hygiene department identifying and treating most periodontitis cases has potential to make up 45% of a practice’s revenue. Where are you now? If you are like most practices, it is probably in the15-20% range. Leverage your staff and you may find yourself with more time to leverage your golf game. 

Get Audited – Sound scary? It’s not the IRS. Reputable, dental-focused CPA firms have established benchmarks for how much you should be spending on your dental supplies and can perform an audit to help you get a handle on expenses. Very often the discrepancies between the benchmarks and expenditures are eye-popping. If the numbers are off-kilter, take steps to lower your supplies bill. Like…

Think Small – Size matters and very often, it’s the mega-dealers who can leave you with the inflated bills. There are still smaller dealers out there who can offer more reasonable pricing (and usually more personal service as well) on supplies and equipment and who can show price comparisons to back up claims. In the same vein, there are product manufacturers (think high-dollar value items like composites, impression and bonding) that might not be as well-known but have products endorsed by independent establishments like Christenson’s CR Report. Seek those out and say hello to lower overhead.  

DC Dental is a Baltimore based full service dental supplier dedicated to providing practices with all their needs at the highest level of service with the lowest price possible. Whether your needs are supplies, equipment sales & service, or a complete office design, we are your single source solution! You won’t have to deal with call centers or multiple people to place an order or pay a bill. We keep the relationship personal and offer one-point-of-contact to handle all of your dental supply needs – from ordering to billing to returns.

You can do business with us in whichever manner you feel most comfortable – via phone, fax, email or your personal web portal that I can set up for you. If you would like to learn more about DC Dental, I would be happy to set up an in office lunch and learn at your convenience.

For more information, contact Hal Gornbein at 877-653-7500 ext. 322 or direct 410-205-8072. Mention “Dental CPAs” for 10% off your first supply order.

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Monday, September 17, 2012

Can a Dentist Deduct Donated Supplies and Equipment?

Can donated supplies and equipment be deducted?

Yes -  if you just bought them for the purpose of donating them and have not and will not deduct them as a business expense (no double-dipping).

No -  if you've already purchased them and written them off completely as a business deduction (no double dipping).

Maybe also on the equipment assuming you haven't fully depreciated it.

Clear as mud? 

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Monday, September 10, 2012

End of the Year Tips to Minimize Your 2012 Taxes

As many dentists know, the upcoming year end is always the time to consider minimizing your taxes. Here are a few tips from the CPAs at the Dental CPAs.
  • Maximize your contributions to retirement plans. Contribute more to your 401k by the end of the year to reduce your taxable income and your tax bill.
  • Consider using a credit card to prepay expenses that can generate deductions for this year such as supplies.  Also, some dental vendors offer no financing loans to purchase supplies.
  • For 2012, the section 179 expensing limit is $139,000. For 2013, as it stands now, is $25,000 of purchases so if large equipment cost purchases are being considered, you may want to do them while the higher expensing limit is available.
  • Bonus deprecation is also available for 2012. Meet with your CPA to see what combination of elections makes the most sense for you.  Consider equipment purchasing with loans as well so that you don’t have to lay out the cash but still get a full deduction for the purchases.
  • Prepay your mortgage and real estate taxes. Even if your payments aren’t due until January, you can pay them in December to deduct this year, if you itemize. Beware though that if you are subject to the Alternative Minimum Tax (AMT), the real estate tax deduction may not be of any additional tax deductible value on your Federal tax return.
  • Give away your money. If you were planning to give a lot of money to someone, utilize your annual gift exclusion of $13,000. This is not an income tax savings strategy but rather is an estate reduction strategy.  If you are concerned about having a large taxable estate, don’t miss the opportunity to utilize your annual gift exclusion each year.
  • Finalize your records. If you plan to deduct mileage on your personal car, make sure your mileage logs are complete.  Review how long you need to keep your paperwork before throwing out any records.
  • Do an AMT analysis. If there’s a chance that you will be subject to AMT, analyze your deductions to see if you are better off waiting to make some of the above moves. Once AMT comes into play, some of the end of the year tax moves will have no tax benefit.  Deductions such as state income taxes and real estate taxes are always an AMT deductibility issue.
  • Fund your IRA.  If you cannot do a deductible IRA contribution, consider whether you should make a non-deductible IRA contribution as it could become a possible future Roth IRA conversion for retirement or estate planning purposes.  You have until the tax filing deadline including extensions to make your IRA contributions.

For more information, please contact