CPAs in South Miami | Are You Getting All Your Tax Deductions?

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Underpaying your taxes is a serious problem, but overpaying taxes by missing eligible deductions can be nearly as harmful to the growth of your dental practice. Tax deductions are powerful tools to reduce your taxable income, allowing you to save more of your revenue. Keep these important and easily-forgotten tax deductions in mind throughout the year so you’ll have your documentation ready for filing.

Marketing and Advertising
Is your dental practice engaged in marketing or advertising? In addition to being an important avenue to grow your patient base, marketing and advertising are also tax deductible. According to the IRS, as long as your expenses related to this are reasonable and are not aimed at promoting business activity outside of your industry, then you can write them off in their entirety.

Utilities and Overhead
Keep detailed records of your practice’s utilities so that you can write them off at the end of the year. Gas, electric, water, internet, phone – these are all deductible. Other overhead payments such as rent or mortgage can also be written off, so make sure to log them.

Lab Fees
A significant part of your annual budget, lab fees can make a substantial difference in your taxable income. Keep track of all expenditures for crowns, dentures, or other outside work that your business relies on to serve your patients. Save on your taxes by writing off these expenses.

Supplies and Equipment
From cotton swabs to top of the line equipment, track everything purchased for your dental practice. Save receipts and invoices, make a spreadsheet, or use software to log and categorize these costs. You will thank yourself at the end of the year for being meticulous.

Tax and Legal Fees
Services such as attorney consultations or tax professionals are also deductible, reducing your taxable income and offering you clarity while navigating tax laws.

Don’t overpay your taxes and stifle your practice’s growth potential. To be certain you are getting every possible deduction, contact our dental CPA office for a consultation.

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802, South Miami, FL 33143
(305) 670-0400

South Miami Healthcare CPAs | Common Payroll Mistakes and How to Avoid Them

CPAs 33143

South Miami Healthcare CPAsHandling payroll for a dental practice is often thought of as a simple task. The truth, however, is that there are many minor errors that can easily lead to major problems. Train your team to catch these small mistakes your practice might be making, so you can be sure to avoid them in the future.

Estimated Recordkeeping – Don’t wait until the day before payroll is due to log shifts worked for the pay period. Days can begin to blend together and it can be challenging to recall who worked which days and times after the fact. Looking through notes and emails to figure out past days’ activities can be stressful and even inaccurate, leading to incorrect pay.

Employee Misclassifications – There are many differences, at both federal and state levels, between an employee and a contractor. Make sure you classify your team members, temporary replacement workers, and anyone else in payroll correctly to ensure an accurate, streamlined process. Depending on the infraction and your area, heavy penalties can occur for misclassified worker pay.

Not Tracking Bonuses or Gifts – Work trips or group outings are no problem, but any sort of bonus or gift that has monetary value needs to be tracked. Gift cards are a common example of this. Make sure to keep a running log of any exchanges like these for year-end purposes.

Paying Employees Wrong Rates – When employees are hired, given a raise, or have their pay otherwise adjusted, make sure this is correctly logged in the system or software you use. Using an hourly wage in a program to pay as salary can have rounding problems, so double-check your work. Manual error or forgetting to process a raise on the books right away can lead to owing back-pay or other issues in the future.

Holidays or Haphazard Payroll – Try to set a fixed schedule for your payroll. When holidays affect the normal cycle, have an established plan to deal with it appropriately. Depending on your area, missing or late payroll can create tax headaches or incur penalties, as well as causing hardship for your team.

Payroll can be a straightforward and mistake-free process at your practice, but it requires proper oversight and attention. Keep an airtight system, follow up on any mistakes, and think ahead. For more information on how to handle payroll or tax concerns, contact our office.

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802, South Miami, FL 33143
(305) 670-0400

South Miami Healthcare CPAs | Manage Your Calendar to Balance Your Life

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Appointments and continuing education consume most of your time. How do you manage to live a happy, well-adjusted, balanced life when you simply don’t have time? The key is in planning. Do you use a calendar to manage your time or do you simply make agreements and arrangements as they come up? Here is how you can balance your schedule by managing your calendar.

Set Clear Boundaries

The first step to achieving a work-life balance is to consider your basic responsibilities and obligations. Set aside blocks of time in your calendar to meet with patients, hold team meetings, and attend organizational group meetings. Your calendar should be your primary time-management tool.

Time Off Means Time Off

You need to set aside time for activities unrelated to work. When you decide to take a day off, make sure it’s in your calendar. If it’s not in there, your time off is likely to be consumed by an emergency patient appointment, unexpected meeting, or other business-related expense. Make your scheduling priorities clear with your office team so they are not left with the burden of how to handle unexpected situations while you are away.

It’s Not Just for Work

Your calendar doesn’t need to be exclusive to work. In fact, it may be beneficial for you to regularly include your other commitments. From your children’s school activities to anniversaries and birthdays, seeing these events alongside your work schedule can help you make better scheduling choices. You’ll be more reluctant to accept an invitation to a meeting or convention when you know it will conflict with another occasion. By including other events on your calendar, you minimize the risk of dealing with a stressful schedule conflict between your work life and your personal life.

Never let your calendar run your day. You have the ability to schedule your day by using your calendar as a tool for time management. Start by setting clear scheduling boundaries by blocking the time you need for your main responsibilities. Don’t be afraid to take time off, but always make sure it is a part of your schedule.  Also, consider including other life events and activities in your calendar to better manage your schedule.

For more tips on effectively managing your work schedule, contact our team today.

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802, South Miami, FL 33143
(305) 670-0400

 

 

South Miami CPAs | Are You Setting the Right Goals?

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No matter how effective you are at vision casting, dreams require hard work and strategic planning to become a reality. Highly successful business owners know the benefits of setting realistic and measurable goals. Rethink the way you are setting goals for your business. Your ambitious plans will be successful only if you have a road map to reach them. By mastering the art of setting incremental, measurable goals, you’ll be able to more effectively to reach them. For more tips on managing your practice, contact our firm today.

 


Plan out the steps, not just the big picture.

Start small by establishing smaller goals on a quarterly, monthly, or even daily basis. It can be easy to let ambition take over and lose track of the work required to reach your ultimate objective. Setting smaller, incremental goals provides the opportunity for you to celebrate the small victories along the journey and reassess early if something isn’t working.

Measure your success.

How will you know if you achieved your goal if you cannot measure it? Goals should have a measurable standard. Perhaps you want to see 5 more new patients each month or to increase the number of referrals by 50%. Set specific goals that are easy to track. This will help you to definitively know whether or not you’ve reached them and, if not, have a tangible metric of how much you still need to accomplish.

Make your goals visible.

The more visible your goals are, the greater pressure you’ll feel to meet them. Make sure everyone in your practice is aware of what you’re trying to achieve. This will not only ensure that they’re actively helping you reach your goals, but will also provide a source of accountability to hold you to your word. Putting up visual reminders can also be a simple way to accomplish a similar effect. The more you’re reminded of your goal, the more likely you are to work towards it.

Real growth doesn’t happen passively. In order to take your practice to the next level, you need to set goals to help you get there. Whether these goals are financial, patient-oriented, or focused on personal development, we’re here to help. Contact us today to learn more!

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802, South Miami, FL 33143
(305) 670-0400

25 Interesting Facts About Taxes | Dental CPA 33143

Dental CPA Miami FL

1)     The word “Tax” comes from the Latin “Taxo” which means “I estimate”.

2)     The Federal tax code was 400 pages in 1913 – in 2010…it was 70,000 pages

3)     The number of words in “Atlas Shrugged” is 645,000. The Bible has approximately 700,000 words. The number of words in the Federal Tax Code is 3,700,000.

4)     While every person who earns a paycheck pays Federal Income Tax, only 43 of 50 states charge their citizens income tax. The states that do not have income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

5)     The IRS is a U.S. government agency that is responsible for collecting taxes and enforcing revenue laws. It is part of the U.S. Department of the Treasury.

6)     Over 1 million accountants are hired each year in America to help with taxes.

7)     In 1691, England taxed the number of windows on a house. As a result, people built houses with very few windows and even boarded up existing windows. This caused nationwide health issues due to lack of airflow and eventually ended in the tax being repealed in 1851.

8)     Emperor Peter the Great of Russia put a tax on beards in 1705.  He hoped this would encourage men to be clean shaved – a look that had become popular in Western Europe.

9)     The word “accountant” is from the French word “compter”, which means “to count or score”.

10)  England has a tax on television. Color TVs are taxed more than black-and-white TVs.  However, if a blind person has a television, he or she pays only half the tax.

11)  Disposable diapers are subject to sales tax in Wisconsin, but cloth diapers are not.

12)  In Texas, cowboy boots are exempt from sales tax.

13)  The Federal form 1040, was introduced in 1913. It was required of any U.S. permanent resident with a net income of $3,000 or more and was only three pages.

14)  Albert Einstein is quoted as saying: “The hardest thing in the world to understand is the income tax.”

15)  Alabama is the only state in the United States to have a playing card tax (10 cents). On the flip side, Nevada gives a free deck of cards with every tax return filed.

16)  The IRS provided approximately $416 billion in refunds in 2011.

17)  WWII led to the creation of the Bureau of Internal Revenue. This later became the IRS, which is the world’s largest accounting and tax-collection organization.

18)  One of the most significant relics of Egyptian history, the Rosetta stone, is actually a tax-related document. It was so important that it was written in three languages.

19)  According to some historians, plane geometry was actually invented by tax collectors and not Euclid (the famous Greek mathematician) in order to determine land size for harvest tax.

20)  In 1787, U.S. citizens could only vote if they were taxpayers.

21)  Newspapers use large sheets of paper because of the “knowledge tax”. In 1816 the British taxed newspapers per page, resulting in them using larger paper to add more content and shorten the number of pages.

22)  There is no known civilization that did not have taxes. The very first civilization, the Sumerians, recorded their tax records on clay cones.

23)  Since 2001, there have been more than 4,500 changes to the tax code.

24)  Taxpayers lose out on millions by not filing returns – tax payers gave up $950 million in refunds in 2012.

25)  More than one-fifth of paper tax returns contain an error.

 

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802, South Miami, FL 33143
(305) 670-0400

Dental CPA | 5 Signs You NEED an Accountant

CPA Near Me South Miami, FL
Have you wondered whether you actually need to have a professional accountant? Here are 5 signs that confirm you do:

1)     You earn over $200,000 per year – Your odds of being audited once you start earning over $200,000 a year increases to nearly 4%. While this may not seem like a large number, it’s actually an increase of over 300%. Having your financials in order in case this does occur is vitally important once you become a high-earner.

2)     You are a business owner or are self-employed – Utilizing the services of an accounting professional is vitally important for any business owner or entrepreneur. Tax laws change annually. The current US tax code has over 7 million words in it. Making sure all of your deductions are included, your assets are depreciating properly, and you are maximizing your tax savings will wind up saving you money in the long run.

3)     You are setting money aside for others – When putting money aside for your children, grandchildren, or anyone you want to take care of, it’s very important to use a financial professional to decide which vehicles to use for tax-deferred or tax-free savings. This includes college savings plans or trusts.

4)     You are incurring large capital gains tax – The key to success in paying big capital gains tax is paying at long-term rates. An accountant can help you with a Qualified Small Business Tax Credit, minimize your taxes, and help you set long-term payment goals.

5)     You are experiencing rapid growth in your business – Not only is keeping your finances up to date time-consuming, it’s also complicated. When you’re experiencing rapid growth, it’s time to call in an accounting professional. Having more customers, employees, and vendors is going to require more paperwork and number crunching and can rapidly become impossible for you to manage.

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802
South Miami, FL 33143
(305) 670-0400

 

Dental CPA | Claim Financial Freedom

Dental Accounting

Whether you’re starting a new practice or have been an owner dentist for years, the financial stress that can come from being a business owner can sometimes overwhelm even the most seasoned professionals. Our goal is to help you achieve complete financial freedom so that financial worries don’t interfere with your ability to work well.

Below are some tips you can follow on your own to help build a rock-solid foundation for your practice. Staying organized and up-to-date with your financials allows you to focus on delivering quality care to your patients. Contact our firm today to learn how we can help!

Have a plan. As the popular saying goes, “failing to plan is planning to fail.” In order to see true success, you’ll need to have both short and long-term plans for your practice. How will you allocate new earnings? How is your practice prepared to deal with slow seasons? How are you budgeting for new purchases? If you don’t already have answers to these questions, they could be a great place to start. Planning for the unexpected can help safeguard your profitability from being derailed by unforeseen expenses.

Set goals. Don’t be afraid to dream big. Your practice will only be as successful as you make it. Setting goals allows you to have a clear yardstick to measure your success against and can help you make better financial choices in the present. By recognizing the simple truth that every small decision you make now can have a huge impact on the future, you’ll be able to start setting yourself up for success. Your future self with thank you.

Be Smart. When starting or growing your business, there can be benefits to taking on strategic debt. However, doing so in a manner that will benefit, rather than hinder your growth requires an understanding of the returns you can expect on your investment. Don’t jump into big purchases without a plan, rather weigh the potential benefits and risks of all your financial decisions.

Get Organized. Disorganization can be a killer for any business. In order to ensure you’re not letting anything important slip through the cracks, it’s important to have systems in place that will guarantee nothing is missed. In addition to protecting you from unforeseen troubles, efficient organization can also help bring opportunities for improvement to light. Whether it’s money that could be saved or resources that could be conserved, understanding the ins and outs of your financials can help you to understand exactly how your money is being used.

If you feel that you could improve in any of these areas, our firm is here to help! Our goal is to make the process of managing and running your practice as simple as possible, allowing you to focus on delivering quality work to your patients and growing your business. Contact us today to learn more.

Parlade & Schaefer, CPAS, PA
5975 Sunset Drive, Ste 802
South Miami, FL 33143
(305) 670-0400

 

Dental CPAs 33143 | Strategies to Boost Profitability

Dental CPAs in South Miami, FL

According to Dr. Charles Blair, DDS, most dental practices are losing between $30,000 and $50,000 in potential profits. How can dental practices maximize return on their services and start to recoup capital? Here are three strategies to boost profits in your practice:

Optimize your Practice

Taking a look at production reports to make sure procedures were coded correctly. This may seem fundamental, but it can save a lot of time and money in the long run. One incorrectly charged procedure can increase costs over the course of a year.

In addition, adding high-dollar procedures to your practice such as endodontics, bleaching, and other cosmetic services can greatly boost your profit. Training dental hygienists in more complex procedures, such as soft-tissue management and bleaching, will also maximize a dental practices’ profitability.

Staff your Practice Well

In order to recruit and hire the best possible candidates, it is worth paying above average wages to experienced people in the field. This avoids employee turnover, which can become costly. A friendly and knowledgeable team will also help with patient retention rates.

Facilities and Equipment

If possible, purchase all your dental and office equipment, rather than leasing it. This avoids a number of issues, including higher retail costs, interest payments, hidden fees, and lease-breaking penalties.

Strive to maximize your office space. If your current patient volume doesn’t allow you to use all your offices, consider subletting either your primary or secondary office space. Also, merging your office with another dentist can help you in fully utilizing your space and also reduces overhead costs.

There are a variety of ways to boost profits and cut costs while owning a practice. To start, think about your services, staff, and office space. Opening a practice can be costly and leave many dentists in debt, especially after finishing school. Contact us today for help on managing your budget and ways to maximize your return on investment.

5975 Sunset Drive, Ste 802
South Miami, FL 33143
(305) 670-0400

CPA for Healthcare | Choosing the Right Business Entity

When you decide to start a business, one of the most important decisions you’ll need to make is choosing the right business entity. It’s a decision that impacts many things–from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face.

Forms of Business

The most common forms of business are Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), and Corporations (C-Corporations). Federal tax law also recognizes another business form called the S-Corporation. While state law controls the formation of your business, federal tax law controls how your business is taxed.

What to Consider

Businesses fall under one of two federal tax systems:

  1. Taxation of both the entity itself on the income it earns and the owners on dividends or other profit participation the owners receive from the business. C-Corporations fall under this system of federal taxation.
  2. “Pass through” taxation. This type of entity (also called a “flow-through” entity) is not taxed, but its owners are each taxed (more or less) on their proportionate shares of the entity’s income. Pass-through entities include:
    1. Sole Proprietorships
    2. Partnerships, of various types
    3. Limited liability companies (LLCs)
    4. “S-Corporations” (S-Corps), as distinguished from C-corporations (C-Corps)

The first major consideration when choosing a business entity is whether to choose one that has two levels of tax on income or one that is a pass-through entity with only one level directly on the owners.

The second consideration, which has more to do with business considerations rather than tax considerations, is the limitation of liability (protecting your assets from claims of business creditors).

Let’s take a general look at each of the options more closely:

Types of Business Entities

Sole Proprietorships
The most common (and easiest) form of business organization is the sole proprietorship. Defined as any unincorporated business owned entirely by one individual, a sole proprietor can operate any kind of business (full or part-time) as long as it is not a hobby or an investment. In general, the owner is also personally liable for all financial obligations and debts of the business.

Note: If you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
Types of businesses that operate as sole proprietorships include retail shops, farmers, large companies with employees, home-based businesses and one-person consulting firms.

As a sole proprietor, your net business income or loss is combined with your other income and deductions and taxed at individual rates on your personal tax return. Because sole proprietors do not have taxes withheld from their business income, you may need to make quarterly estimated tax payments if you expect to make a profit. Also, as a sole proprietor, you must also pay self-employment tax on the net income reported.

Partnerships
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

There are two types of partnerships: Ordinary partnerships, called “general partnerships,” and limited partnerships that limit liability for some partners but not others. Both general and limited partnerships are treated as pass-through entities under federal tax law, but there are some relatively minor differences in tax treatment between general and limited partners.

For example, general partners must pay self-employment tax on their net earnings from self-employment assigned to them from the partnership. Net earnings from self-employment include an individual’s share, distributed or not, of income or loss from any trade or business carried on by a partnership. Limited partners are subject to self-employment tax only on guaranteed payments, such as professional fees for services rendered.

Partners are not employees of the partnership and do not pay any income tax at the partnership level. Partnerships report income and expenses from its operation and pass the information to the individual partners (hence the pass-through designation).

Because taxes are not withheld from any distributions partners generally need to make quarterly estimated tax payments if they expect to make a profit. Partners must report their share of partnership income even if a distribution is not made. Each partner reports his share of the partnership net profit or loss on his or her personal tax return.

Limited Liability Companies (LLC)
A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state is different, so it’s important to check the regulations in the state you plan to do business in. Owners of an LLC are called members, which may include individuals, corporations, other LLCs and foreign entities. Most states also permit “single member” LLCs, i.e. those having only one owner.

Depending on elections made by the LLC and the number of members, the IRS treats an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it elects to be treated as a corporation.

An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it elects to be treated as a corporation.

C-Corporations
In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.

A corporate structure is more complex than other business structures. When you form a corporation, you create a separate tax-paying entity. The profit of a corporation is taxed to the corporation when earned and then is taxed to the shareholders when distributed as dividends. This creates a double tax.

The corporation does not get a tax deduction when it distributes dividends to shareholders. Earnings distributed to shareholders in the form of dividends are taxed at individual tax rates on their personal tax returns. Shareholders cannot deduct any loss of the corporation.

If you organize your business as a corporation, generally are not personally liable for the debts of the corporation, although there may be exceptions under state law.

S-Corporations
An S-corporation has the same corporate structure as a standard corporation; however, its owners have elected to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S-corporations generally have limited liability.

Generally, an S-Corporation is exempt from federal income tax other than tax on certain capital gains and passive income. It is treated in the same way as a partnership, in that generally taxes are not paid at the corporate level. S-Corporations may be taxed under state tax law as regular corporations, or in some other way.

Shareholders must pay tax on their share of corporate income, regardless of whether it is actually distributed. Flow-through of income and losses is reported on their personal tax returns and they are assessed tax at their individual income tax rates, allowing S-Corporations to avoid double taxation on the corporate income.

To qualify for S-Corporation status, the corporation must meet a number of requirements. Please call if you would like more information about which requirements must be met to form an S-Corporation.

Professional Guidance

When making a decision about which type of business entity to choose each business owner must decide which one best meets his or her needs. One form of business entity is not necessarily better than any other and obtaining the advice of a tax professional is critical. If you need assistance figuring out which business entity is best for your business, don’t hesitate to call.