Best Practice #6: Why Dental Practices Must Stay on Top of Tax Payments
Ughh… we had to bring the topic of taxes up, didn’t we? Yes, but relative to the other best practices we’ve covered, this one is relatively straight-forward.
No one likes to pay taxes, but as a dental practice owner it pays to stay proactive when it comes to your tax payments. Paying estimated quarterly tax payments allows you to spread your tax responsibilities out over the year. This is important because it “smooths” your expenses out during the course of the year and avoids a potentially significant cash flow issue at tax filing time.
Of course, there are other very good reasons to stay on top of your tax obligations brought to you courtesy of the Internal Revenue Service. The IRS says, “We calculate the penalty separately for each required installment. The number of days late is first determined and then multiplied by the effective interest rate for the installment period.” Generally, the IRS charges a fee of 0.5% per month.
Don’t get yourself in a financial pinch (or otherwise pay more than is needed) when it can be avoided with some simple planning!
How much should you set aside and when should you make payments? As with any tax-related issue, make sure to obtain advice and counsel from a licensed tax professional in the State in which your practice resides.
If you’re looking to increase both the revenues and profitability of your dental practice, don’t hesitate to reach out at 844-424-9637.
If you’d like to receive the full series with all seven best practices in one whitepaper, just complete the short form below.
LET US KNOW WHERE WE SHOULD WE SEND YOUR FREE GUIDE!
7 Key Financial Practices That Separate Thriving, Growing Practices From The Rest.
There’s no denying it. Creating a thriving practice is about much more than practicing medicine!
Topping the list of “other” priorities is your practice’s financial management. In this short guide, the experts at STAC Bizness Solutions outline 7 financial best practices that differentiate struggling practices from those which are highly profitable and experiencing healthy levels of growth.