This message is for dental practice buyers. Be on the lookout for Covid related income disguised as patient income or reduced overhead. We’ve been seeing this since early to mid-2021, and we continue to see it. As we’re doing our due diligence for our buyers, we’re uncovering issues of how Covid income was reported on practice financials which should have been removed or adjusted out for cash flow analysis. So, what is Covid income? Covid income is simply income or benefits that the practice received due to the various Covid relief funds made available to dental practices to help them recover ..read more

As the seller of a dental practice, there is much you must do to put your practice up for sale and market it to prospective buyers. Although your transition team will help you throughout the process, the responsibility of collecting relevant information and keeping it organized falls to you.   There can be so much to prepare and organize, how do you know where to start? Or what to include? We’ve compiled this cheat sheet with guidance from the American Dental Association to help you.   About Your Practice and Community Prospective buyers will have many questions. Make it easy for the ..read more

The IRS recently announced an immediate stop to processing new claims for the Employee Retention Credit. The ERTC is a refundable tax credit designed for businesses that continued to pay their employees despite Covid-19 closures or that had a significant decline in gross receipts during eligible periods, primarily 2020 and 2021. Many of us have heard commercials, received a fax or email and even a phone call promising exorbitant refunds on ERTC claims from insistent marketers, all willing to file on your behalf and take a percentage up front of their promised return. Despite numerous warnings ..read more

Well, not really ALL about EBITDA; that said, it’s essential to know what it is, what it means, how it’s used, how it’s calculated, and most importantly, does it apply to you and your practice. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Some see it as a form of net cash flow for a business. The acronym EBITDA has been around forever and doesn’t just apply to the dental world. EBITDA is an acronym used by the valuation profession to measure profitability or adjusted cash flow for a business. They use this measurement to help them develop the values of com ..read more

The post Transition Pitfalls appeared first on Dental CPAS ..read more

On June 11, 2021, HHS updated the reporting requirements for recipients of Provider Relief Fund payments. The new notice supersedes the Post Payment Reporting Requirements Notice released on January 15, 2021. The changes per the June 11, 2021 notice include:   The period for using the funds on (1) qualified expenses related to preventing, preparing for, and responding to coronavirus and (2) lost revenues related to coronavirus will be based on the date the payment is received instead of requiring the payments to be used by June 30, 2021, regardless of when they were received. This p ..read more

EMPLOYEE RETENTION CREDIT (ERC) The CAA legislation provided some important updates to the Employee Retention Credit. Not only did this legislation extend the credit thru June 30 2021 but the credit is now retroactively available for all entities that paid wages during the periods of March 12 through December 31, 2020.    2020 CREDIT (AVAILABLE RETROACTIVELY) Previously, employers were not eligible for the ERC if they received a PPP loan. Under the new CAA Legislation, employers are eligible for this credit even if they received a PPP loan. However, it is important to note that ..read more

Due to Covid-19, several federal and state relief programs were designed to help dentists and other small businesses survive the pandemic. Three of the most popular programs were: The Paycheck Protection Program (PPP) administered by the SBA The Provider Relief Fund administered by HHS The Employee Retention Tax Credit (ERTC) All these programs provided financial relief in the form of grants, loans, and tax credits. Each program had its own set of rules for qualifying for relief funds. In some cases, the rules changed throughout the pandemic, which confused accountants and dental clients. In ..read more