Do dental associates need an accountant? Dental practices occasionally question whether they need to be paying for the services of an accountant. After all, managing your finances and keeping track of your tax may seem manageable on your own.
However, the role of an accountant goes beyond simply crunching the numbers. In this blog post, we will explore the role of an accountant and how you can benefit from the expertise and guidance of one.
An accountant will save you time
Managing your finances can be a time-consuming task, taking away valuable hours that could be better spent focusing on patient care and growing your dental practice.
By hiring an accountant, you can delegate your financial tasks, including bookkeeping, tax preparation and payroll management. That alone will free up a lot of your time.
However, remember that accountants are trained professionals who specialise in these areas. As such, they’ll be far more accurate, reducing the chance of error and the need to use even more time making corrections. They’ll also be more efficient in their work than an untrained individual.
Of course, you could hire a finance professional to handle the books, accounting, tax, etc. However, hiring is time-consuming itself. Outsourcing, on the other hand, is typically easier and offers more flexibility.
Error reduction and financial accuracy
We’ve mentioned how an accountant will help maintain accurate financial data so you don’t have to waste time retrospectively correcting things. But accuracy is also essential for businesses that want to make informed decisions and maintain their financial health.
Finance is all about detail; something as simple as a missed zero or misplaced decimal can spell disaster. So, having someone who has the time and expertise to comb through a lot of data is extremely advantageous.
Tax is complex. Never underestimate that. And if you don’t get it right or file late, you’ll face financial penalties. Make a mistake on your tax return, and you could pay too little tax, getting in trouble with HMRC. You could even pay more tax than necessary — and the tax authority isn’t going to tell you about it.
A tax accountant will be able to help you remain compliant with your tax obligations.
However, tax accounting is more than just filing an accurate tax return on time; it’s also about minimising your tax liability as much as possible by applying every tax credit and relief as possible.
There are a wide array of these schemes that can be difficult to understand and apply for — it can even be tough to work out whether you’re eligible for something or not. But accountants will understand the tax system, and should be able to help create a plan that saves you some money on your tax bill.
Financial planning and business growth
Many accountants are more than number crunchers who maintain your finances and create financial reports. Instead, the majority can provide proactive business advice and develop financial strategies that can help your business grow.
More specifically, an accountant can help you create realistic budgets, analyse your revenue streams and identify areas for improvements. They can also guide you through investment, expansion, succession plans and much more.
By leveraging their insights, you can optimise your financial planning and position your dental practice for long-term growth and success.
Peace of mind and stress reduction
Ultimately, hiring an accountant is about getting peace of mind. Managing your finances can be overwhelming, especially when you’re having to worry about every other aspect of running your dental practice on top.
But by partnering with an accountant, you can alleviate the stress associated with financial management. By providing professional advice and handling complex financial tasks, you can focus where you really need to be — or just get some well-deserved rest!
If you’re looking for an accountant to help you with financial management, we can help. Get in touch with us today.