Reasons Young Professionals Need a CPA
Spring is usually the time when we talk taxes! But, since 2020 has been an unprecedented year all around, tax time came a bit later this time. Taxes are a necessary evil that is the sobering reality for anyone earning a paycheck. But with each passing filing and with the rising trend of DIY everything, it seems like the younger generation are turning their backs on an accountant and instead trying to do it themselves. With the help of google people are turning to software like Turbotax or an employee at H&R Block to prepare and file their taxes at the end of the fiscal year. Nothing against these methods of tax preparation, but not everything needs to be DIYed (side note: don’t get me started on DIY braces). However, in this economic climate CPA’s are more important to young professionals and businesses than ever.
The Rise of Contract Employees, Start Ups and Side Hustles
The economy is primed for startups. We’re at an age when people are constantly able to create and innovate to drive the world forward with the click of an app. But with all new business ventures comes great risk. There is incredible and inherent risk when starting a business and every dollar spent needs to be accounted for. So it’s no wonder that with the boom of the startup sector that there’s a rise in contracted employees. Contracting employees is cheaper. Not only that, but by contracting work, startups everywhere gain the flexibility to adapt and shift to the market needs. Independent contractors are the logical choice for emerging businesses. However for the contractor themselves, the line between employee and freelance can be blurry.
Yes, You Need An Accountant
Inexperience, mixed with the looming tax deadline creates panic for so many young people. An accountant can alleviate that stress - they understand tax laws and can help you save your hard earned money. The same thing can be said for entrepreneurs navigating the world of small businesses. CPA’s can help keep your financials on track, while advising you on taxes. “This may seem obvious, but keep in mind that rules and regulations change frequently, and it’s tough if not impossible for any business owner to keep up with it all. An accounting professional can take away your uncertainty and ensure your business stays compliant.”
So, are we at a time when it’s easy to file your taxes, all on your lonesome? Yes. But nevertheless, more and more people are turning to the side hustle to earn a little extra at the end of the month.
Conversely, a CPA firm that concentrates on the dental industry can not only review QuickBooks, provide tax reduction planning, and provide best practices benchmarking for a dental practice, but should also provide insight into the best local providers for:
Dental Law Firms
Dental Banking
Dental Real Estate
Dental Brokerage
Dental Insurance
Dental Practice Cost Segregation
If you are searching for a higher level of expertise at key points in your dental career, it really pays attractive dividends to align yourself with a CPA firm that is focused on the dental industry. Below are some of the most important inflection points for hiring a Dental CPA:
Incubator Stage – While working in Corporate Dentistry or attending dental school, it really pays to create the right professional relationships to overcome obstacles to dental practice ownership.
Growth Stage (first five years of ownership) – Decisions ranging from office location to practice type to office staff can have profound impact on production, cash flow, client acquisition, and debt reduction.
Adolescent Stage – Decisions focused on technology upgrades, remodeling, office design, improved work flows, and improving clientele quality.
Maintenance Stage – Most of this phase focuses on saving for retirement.
Exit Stage – Most of this phase is focused on maximizing the value of the practice for sale.
If you haven’t found a great dental CPA to work with, feel free to shoot me an email and I can offer my recommendation.
