Accountants For Dentists

To answer this, we need to explore what our specialist dental accountants can offer that standard accountants can't.

Specialist Training & Development

To begin with, they have studied the specifics of dental accounting and have a broad knowledge of the issues facing the dental industry. It's possibly taken you around seven years to establish your dental career, and you've earned your title through hard work, dedication and determination.

Surprisingly, the same can't be said of all those practising as accountants. Did you know that anyone can set themselves up as an accountant? The term is not regulated, although there are several governing bodies that oversee the field. However, you don't need a degree or even an A-level to advertise your services as an accountant.

That makes choosing a suitable, qualified accountant all the more important.

And while you're not likely to hire just anyone without checking their credentials, it highlights the fact that not all accountants are equal.

Auditox Accountancy selects highly-qualified team members and ensures that they receive the necessary training that enables them to proudly use the title specialist dental accountants.

Dealing With IR35

When HMRC changed the IR35 rules in April, it caused a great deal of confusion and fuss for many dentists and associates.

Up until that time, members of the Dental Professionals Association (DPA) and the British Dental Association (BDA) could submit their income as trading income rather than employment income when completing their Self Assessment Tax Returns.

The recent changes now mean that any dentists or associates within a practice may be classed as employed by the practice rather than a self-employed dentist. You now need to use the Check Employment Status for Tax (CEST) system to determine which category you fall into. If you are deemed to have used the wrong one, both you and the practice will face extra tax liabilities.

Tax Avoidance

IR35 is used to prevent people from avoiding tax by stating they are a sole trader or limited company rather than an employee.

Your dedicated Auditox Accountancy specialist dental accountant will conduct a thorough IR35 review of the entire practice to establish whether you and other staff have self-employed status, and help you to avoid paying more tax than necessary.

Making Tax Digital

In a drive to make the tax and accounting process more efficient, the UK Government introduced the Making Tax Digital (MTD) initiative, and this is being rolled out over the next few years.

The aim is to reduce the amount of paperwork involved and have a fully paperless system.

While straightforward in theory, the practicalities of this process are a different matter, adding to the stress and pressure of running a dental practice.

After 6th April 2024, any Self Assessment taxpayers with an income of £10,000 must use MTD-compliant software to complete and store all tax and accounts information. You will no longer be allowed to use paper copies, as this will be against the law.

A More Involved Process

Also, rather than submitting one self-assessment tax return each year, self-employed dentists will have to complete a summary of accounts for each quarter, followed by an end-of-year report.

An Auditox Accountancy specialist can guide dental professionals through the entire process to make sure they comply with the rules and avoid any penalties. We will help you to transition from a paper-based system to a completely automated one that is compatible with the MTD software.

Dental Practice Performance

When you chose a career in the dental profession, you probably didn't expect to have to be an expert in business studies as well. While your training may have prepared you for this side to an extent, it's likely that you don't always have a business mindset - your main priority is dentistry.

After all, they are usually referred to as a dental practice rather than a dental business!

However, it's vital to manage the financial efficiency of any dental practice if you want to continue to succeed.

Your dedicated Auditox Accountancy specialist will monitor your financial position and provide expert advice to keep you on the right course.

Here are some of the areas where Auditox dental accountants can assist you:

Expenditure Analysis

We will examine your finances to see where money is being spent and see if there are any savings to be made. This will look at items like business rates, rental agreements, PPE, dental equipment, cleaning and hygiene contracts, uniforms, and consumables of all types.

If we believe that you could save money in any of these areas, we will offer advice to that effect, but the final decision will be yours. Where possible, we will source cheaper alternatives.

Debt Management

Auditox Accountancy services can renegotiate the terms of any debt repayments to bring about a healthier cash flow situation.

Most businesses carry debt of some kind, but this doesn't have to be a burden that impacts the day-to-day running of a successful dental practice. We will ensure that things run smoothly as dental associates and practice owners already have enough to contend with.

E-Security

As you are holding personal and sensitive information about your patients, as well as detailed financial data and personal data relating to staff, it is essential that your system is safe from malicious attacks.

We will perform a full system safety test and make recommendations where necessary to ensure that all of your data is protected securely.

Tax & Accounting

Dealing with tax returns and annual accounts can be frustrating, especially when you have other priorities that take up most of your time.

The highly-trained accountants for dentists from Auditox Accountancy can take all of this off your hands and provide expert advice on all aspects of dental accountancy.

For example, an accountant from our specialist team can perform a deep health check on your tax, accounts and financial performance to ensure that you are tax efficient. They will identify any expenses that you could claim that you aren't already receiving and will help you to plan your accounting structure in a more accessible and coherent manner.

Start-Up Advice

In many ways, setting up dental practices is no different than starting any other business.

You need to sort out premises, equipment, amenities, staff, decor, and much more besides. You also need to arrange all the behind-the-scenes and administration aspects, like accounting, tax, payroll, business insurance, etc.

Support During Start-Up

Auditox dental accountants offer specialist services to steer those who have just started their own practice. We will provide sound and timely business advice and help you to set up a fully automated online accounting system with cloud-based software to get you off to a flying start.

This can be linked to your business bank account and will let you search, scan and print invoices. You'll also have access to and be able to manage your tax and accounts information via this system.

NHS Dental Tenders

The UK has seen a huge increase in demand for NHS dental contracts in the past few years, which has led to more competition among dental practices to secure a tender.

This is one area where many dental practice owners fall down, not through any fault of their own, but simply because they weren't fully prepared or weren't aware of all the complex issues involved.

When you submit a tender, it's your job to prove that you can deliver. And if you fail, then the tender is lost to your competition.

Our dental accountants will ensure that your tender has the best chance of being successful and that your practice can fulfil the main criteria. Essentially, this means that you need to prove in your tender that you can deliver a cost-effective service of superior quality and that you will adhere to the NHS best practice standards.

On the practical side, you are the dental experts, and that is up to you to deliver. As for the financial issues, we will help you prepare the tender accurately to present your practice in the best possible light. However, we will support you along the way and help you to complete all the necessary forms.

These might include an Invitation To Tender (ITT) or a Pre-qualifying Questionnaire (PQQ).

With our expertise, you stand a much higher chance of winning the tender, as all of the paperwork will be completed efficiently and to a high standard and will be delivered promptly.

Insurance Against Tax Investigation

If you are subject to a tax investigation by HMRC, it can be a disruptive and worrying time. Many small to medium businesses have found, to their cost, that they are suddenly accused of financial wrongdoing, often to do with tax matters. Investigations frequently result in court proceedings, regardless of whether it was a simple oversight in accounting or any tax laws were deliberately broken.

Even if you are found to have been fully compliant, HMRC is not obliged to pay your legal costs, and you could be left with a bill for legal fees that runs into the thousands.

We offer a sensible way out: an insurance policy for tax investigation that protects the practice owner against this type of event.

Our dedicated team will handle everything for you, giving you the peace of mind to know that a tax investigation won't put you out of business.

Annual Accounts

We will perform all accounting functions for you, including:

• Payroll and pensions (see below)
• Book-keeping
• Management accounts
• Accounts payable/receivable
• All types of tax

We also prepare annual accounts (statutory accounts) and reports at the end of your financial year for stakeholders, board members, and your AGM. They can also be used by potential investors to ascertain whether or not to become a shareholder, so it's important to get these right!

Payroll & Pensions

This can be a nightmare for the uninitiated and unprepared, especially if your admin area hasn't gone 'paperless'.

With a dedicated accountant for dental practice associates from Auditox Accountancy, you get someone who is familiar with the dental sector. They will handle all financial affairs relating to pay and pensions, including NHS pensions.

Our online accounting and payroll systems are secure and convenient, allowing easy access to any information you might need at any time, including:

• Pension information
• Employee payslips (past and current)
• Employee timesheets
• Annual leave calendar
• Salary details
• Personal information (contact details etc.)

Some dental practices waste hours sending paper forms back and forth, while our system eliminates all of this, allowing the operation to run smoothly and efficiently. The data can be accessed remotely and securely from various devices using cloud accounting software, making it easier for you to manage and control. This will save time and reduce your workload, allowing you to focus on other priorities.

And if you have any issues or concerns, your Auditox Accountancy specialist is on hand whenever you need them to provide support and advice.

Dental Practice Acquisitions

Like any other business, dental practices sometimes expand to take in others or are taken over by larger companies themselves.

Dental practice acquisitions can be a stressful procedure for all involved, as there are complex issues and legal technicalities involved.

Whichever side you are on during this time (that is, whether you are buying or selling), our specialist accountants for dentists will use their expertise to bring reassurance and clarity to the situation.

They will take an active role in the procedure and provide the following:

• Detailed analysis of the practice structure
• A full and thorough review of the proposition
• A comprehensive buying/selling plan
• An investigation to identify any potential problems with the deal

Our specialist dental accountants have the knowledge and training to walk you through the transition period and help you to avoid any undue stress and difficulties.

Restructuring

It's a contentious subject that's easier to ignore, but the dental industry can be affected by financial woes just the same as any other. In a financial downturn, difficult conversations and decisions must be made.

Rather than put this off, it's best to face them head-on, and the best way to do this is to have a definite, coherent plan.

Auditox Accountancy specialist dental accountants are fully trained and prepared for this and will assist you in any way they can to restructure your dental practice.

They will liaise with lenders to negotiate better terms, make recommendations on pricing structure, and identify any cash flow problems. Essentially, they will overhaul the entire structure to improve business performance as much as possible.

Any action taken will include all stakeholders, board members, associates, staff and affected third parties.