Our CPA firm works with great dentists in Texas — specifically the Houston area — who find themselves on the path to launching a dental practice. The key for dentists who want to open their own practice is to build a team of trusted advisors who can advise on the primary business issues you will encounter around money, taxes, and risk management.
Most Important Trusted Advisors for a Dentist
If you are serious about starting or buying a practice, we recommend focusing on these three types of professional service providers:
The combination of a CPA, attorney, and banker will help get you on the right track as you navigate the unique challenges associated with purchasing or establishing a practice. You should start thinking about your future practice like a business owner. This includes understanding legal requirements, tax situations, financial sourcing, cash flow, and risk management for dental practices. As you walk through these situations, you should strategically evaluate the quality of each business relationship.
When building your team of trusted advisors, you should focus on their competence and experience. Also, don’t dismiss the importance of liking the professionals that you engage with. These individuals will be advising you on some of your largest financial transactions and business decisions. The process is easier if you start with someone you know, like, and respect.
Keep in mind that starting (and running) a dental practice in Texas is a highly complicated exercise. Your team can help advise on the Dental Practice Act (DPA) and the rules and regulations from the State Board of Dental Examiners (SBDE). Common issues to navigate include:
- Whether to carry malpractice insurance coverage.
- How to charge patients for services.
- Rules around patient dismissal and abandonment.
- Rules concerning how you are allowed to promote your dental practice.
- Tax planning for the business and your individual tax return.
- Setting up the best Key Performance Indicators (KPIs) to track performance.
How a Dental CPA Can Provide Start-up Support
Within your group of trusted advisors, we strongly recommend that dentists engage a CPA firm that specializes in dental practices.
A general CPA may not be able to provide the level of support that dentists need when walking through start-up issues. However, a CPA firm that specializes in dental practices can dive into complex and nuanced business issues related to a new dental practice to provide strategic advisory.
Specific to our CPA firm, we help dentists launch their own practice through our Practice Made Profitable program. This six-month program focuses on establishing the building blocks so that you can open your doors with confidence, continue to grow, and become profitable.
Our program focuses on the following building blocks for your practice:
- Establish the mission, vision, and values.
- Perform a financial projection.
- Set up accounting and payroll.
- Review standard financial statements.
- Establish monthly processes.
During the start-up program, we meet with new dental practice owners every month to review progress and prepare to open your doors. Then, once you start seeing patients, we are available to continue providing ongoing services as one of your trusted advisors.
What we have found is that clients recognize the benefit of continuing to work with a CPA firm that understands the unique accounting, tax, and business challenges for their dental practice. Simply put, certain issues will not cross your mind during set-up that will require support during the ongoing phase as your practice continues to grow and become profitable.
Consider Caudell & Associates As A Trusted Advisor
As you continue to investigate the requirements for starting a dental practice in Texas, we encourage you to reach out to a variety of potential advisors. Focus on building a network of reliable individuals that you can turn to at various stages of the journey.
Our CPA firm would certainly appreciate the opportunity to be part of your network of advisors providing you with information on the path to opening your own practice. Whether you are serious about starting your own dental practice or still investigating the opportunity, reach out to us for support.