Practice Health Insurance Options

You don’t have to look far to know that health insurance costs are on the rise. It’s becoming a hot topic for Practice owners and their employees. If you haven’t already been asked by your staff to add health insurance, or why the cost keeps going up, you likely will soon! As a Practice owner, you are faced with trying to juggle employee satisfaction and retention in addition to managing profit margins and cash flow. If you are considering adding health insurance, changing plans, or looking for ways to manage the cost, you can count yourself in a growing group of concerned Practice owners. Health insurance is a valued benefit for your staff and you need to make sure you can offer it at a sustainable cost to your overall margins.

You may ask yourself… why even offer it? It’s a hassle. It’s costly. Does my staff even really appreciate it? These questions have caused many Practice owners to procrastinate on offering it and others to drop it altogether. In 2019 and into the future, your Practice will face an increasingly competitive marketplace for talented staff. Health benefits can be a vital part of attracting and maintaining high quality talent.

Don’t worry, it’s not all doom and gloom. There are more options today for your Practice than ever before. Below, we’ve listed and will subsequently review some of the most popular health insurance options for Practices in 2019.

  • Traditional Group Health Insurance
  • Association Health Plans
  • Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs)
  • The “Bonus” Plan
  • PEO’s
Honorable Mentions:
  • Group-integrated HRAs
  • Self-funded Health Insurance

In full disclosure, the above are options for health coverage, just not common for the dental industry. Know they exist, but these should be viewed as an outlier solution for your Practice.

As each of the options above are considered for your Practice, our dental team can help you find the right partners in your market to help determine the best option for you, analyze the cost to your bottom line and industry standards, and project the cash flow impact to you as the owner (considering tax implications, including review of potential tax credits). Analyzing each of these options is a lot to tackle on your own so bringing in a qualified professional will be key.

In our following posts, we’ll review the basics of how these options work, the corresponding pros and cons, roadblocks to certain options, and highlight the right Practice profiles.

If you have questions or would like to be connected with a health insurance partner in your area, contact us today!

The Advantages of a Cloud-Based Accounting Firm

In this recent article by Journal of Accountancy, CEO John Bly explains how LBA Haynes Strand successfully transitioned to cloud-based technology. In today’s world it is necessary to be able to work remotely and have the same access as you would if you were in the office. Are you considering making the switch to the cloud? John shares three advantages our firm noticed after the transition.

Cost Savings – Switching to the cloud provided cost savings for our firm in 2009 because we were previously buying new servers every three to five years. Once on the cloud, we didn’t have to replace the servers any longer and were able to eliminate the outsourced IT department expense.

Increased Security – Cloud computing is actually more secure than having servers in-house. When we had servers in-house, someone could have broken into our office, taken our servers, and caused a lot of damage. With the cloud, our IT department can see any unusual logins and handle any issues immediately. We also don’t have to worry about the security of our laptops, since none of our employees have client data stored on laptops.

Reliability – We’ve lost power about 15 to 20 times and a couple of times it was out for two to three days. If our servers were in-house, no one would have been able to work. However, for 10 years we’ve been cloud-based and in secure underground facilities that rarely lose power. We have 99% uptime. If we lose our power at the office, it’s no big deal, as everyone has the ability to work from home. The data centers are facilities specifically designed to keep servers up and running and able to recover quickly from any problems.

You should no longer receive delayed responses or hear that your auditor or accountant is unable to properly do the work you need until they return to the office. Accounting firms that operate in the cloud offer you streamlined responses to all your accounting questions. LBA Haynes Strand is proud to be a cloud based firm and offers the best service possible to our clients.

To learn more about how we can support you and share in the benefits of cloud-based technology, contact us!

Why Should You Hire a Dental Specific CPA?

Whether you are a new dentist entering the market, an established dentist, or considering transitioning out of your Practice, having a dental specific CPA in your corner is the key to success. We live in a world of specialization. While a general accountant may be easy to find and work with, having a CPA with deep industry expertise on your side is vital to the success of your Practice. Our dental team is uniquely qualified and ready to support your Practice regardless of what stage you are in.

A few key solutions we provide are:

Specialized Tax Planning

As you become successful and grow your Practice, your tax situation becomes more complex. Dental specific CPAs are able to share techniques to lower your tax rate while increasing your tax savings.

Trends & Benchmarking

Our expertise extends beyond traditional tax planning and compliance. Our team is fully immersed in the dental industry which provides us with tangible insight on current trends and common issues to help you make educated business decisions.

Complete Lifecycle Support

From start-up to exiting your Practice, our team serves as strategic business advisors who are there with you every step of the way. For future Practice owners, we develop a business plan to help obtain business financing needed to take the next steps and launching your Practice confidently. When purchasing an established Practice, our team works with you to find and review purchase options through our Practice Scorecard Analysis and due diligence process. When it comes time to sell your Practice and retire, our team is able to provide sell side representation and focus on finding the right buyer who is able to provide you with the right offer.

Owning and managing a dental Practice can be quite challenging. Allow us take the dental accounting and tax preparation tasks off your hands so you can focus on providing high quality service to your patients. To learn more about how a dental specific CPA can support your Practice, contact us!

If you are interested in starting or acquiring a dental practice, check out our dental lifecycle blog series!

LBAHS Partners with Ceterus for Dental Practice Accounting

In an effort to serve our dental Practice accounting clients well, we are expanding our service offerings through a new partnership. We are proud to announce our partnership with accounting technology company, Ceterus. Through this strategic partnership, our firm will be better positioned to provide client accounting services, particularly for our growing client base in the dental industry.

Client accounting services (CAS) is a fast-growing and profitable business segment for CPAs. Building upon their highly successful automated accounting and benchmarked reporting solution, financial technology company Ceterus has designed a platform to automate the CAS practice for CPA firms.

“Our philosophy at LBA Haynes Strand is ‘accounting ahead of the curve,’ and we’re always looking for the best partners and tools to bring that idea to fruition,” says LBA Haynes Strand Principal, Brad McKeiver. “We needed a way to scale-up our services in the dental sector as we have grown. We want to continue allowing our team to spend time with clients, specifically in the advisory capacity and this helps us accomplish that goal. By leveraging Ceterus, we’re able to grow more efficiently while providing added value to our dental clients, which in turn helps them grow, too.”

In addition to automated bookkeeping, Ceterus provides LBA Haynes Strand with customized, industry-specific reporting, and benchmarking tailored to the needs of their dental clients. This technology empowers our CPAs to provide dentistry clients with industry best practices and strategic advisory services to increase Practice profitability and growth.

“As the industry landscape continues to change, client accounting services has become an increasingly important way for CPA firms to grow,” says Ceterus CEO Levi Morehouse. “We’re proud to provide the technology that enables firms like LBA Haynes Strand to focus on this value-add, while helping their SMB clients grow strategically.”

To learn more about how we can support you through our personalized dental Practice accounting solutions, contact us! If you would like to read more about our partnership with Ceterus, check out this article on Accounting Today!

Julie Ayers: Enterprising Women of the Year Award Honoree

Enterprising Women magazine has announced the winners for the 2019 Enterprising Women of the Year Awards. LBA Haynes Strand is excited to announce that Julie Ayers, Principal Member of LBA Haynes Strand, has been named an award honoree! The Enterprising Women of the Year Awards is an annual tribute to the world’s top women entrepreneurs. It is widely considered one of the most prestigious recognition programs for women business owners.

“The recipients of the 2019 Enterprising Women of the Year Awards represent an amazing group of women entrepreneurs from across the United States and as far away as India and South Africa,” said Monica Smiley, publisher and CEO of Enterprising Women. “We are so proud to recognize their accomplishments as CEOs of fast-growth companies, community leaders, and role models and mentors to other women and girls. We look forward to shining the spotlight on them at our 17th annual awards event in March.”

There are seven categories of award winners, based on annual sales. To see the complete list, click here.

In addition, Julie Ayers and LBA Haynes Strand want to congratulate the other women across the globe who were recognized for the Enterprising Women of the Year Awards. You can find more information or register to attend the awards celebration by clicking here.

Tax Deductible Expenses for Dental Associates

Are you a 1099 dental associate at one or more Practices and not sure what you can deduct? We have compiled a list of common business expenses you should keep record of in order to offset your contract income. This is not an all encompassing list and we encourage you to ask us about additional expenses if you are unsure.

Common dental associate expenses to keep record of include:

  • Continuing dental education, including travel and meals
  • Dues and subscriptions – state society, study clubs, publications, etc.
  • Cellular telephone
  • Meals that occurred for a business purposes
  • Uniforms (potentially including shoes)
  • Small dental equipment and supplies
  • Licensing and other fees
  • Legal and professional services
  • Advertising expenses
  • Business insurance (not life insurance) – most commonly malpractice insurance
  • Health insurance premiums
  • Mileage between offices, to purchase supplies, to the post office, etc. – not commuting mileage (from home to office)
  • Home office expense for the area of your home used exclusively for business purposes
  • Any non-reimbursed business expenses from the host practice

Tax season is right around the corner. Don’t wait until the last minute and miss deductions, start today! To learn more about how we can support you this tax season, contact us!

Winston-Salem Expansion

LBA Haynes Strand, PLLC is excited to announce that we are expanding our firm’s presence into the Winston-Salem market.

Winston-Salem is a continually developing city in the heart of the Piedmont-Triad and is currently experiencing the largest renovations and development the city has seen in over 15 years. According to Journal Now, recent estimates show the growth in Winston will continue to rise over the next few years and is expected to hit a population of 250,000 by the next census in 2020. We are excited about this expansion and believe our firm will fit in well with the Winston-Salem community.

If you are an individual or business owner in the Winston-Salem region and would like to schedule a no-cost consultation with an established certified public accounting firm, contact us. Our team is ready to work with you.

Courtney Ageon

Courtney Ageon: Promoted To Principal

LBA Haynes Strand is pleased to announce that effective January 1st, 2019, Courtney Ageon has been promoted to Principal. As a result, Courtney joins the principal leadership team. Courtney will remain focused on serving the tax, accounting, and audit needs of our clients across the southeast.

Dave Recchion, Greensboro Office Managing Partner, states, “Courtney is a natural leader and doesn’t need permission to lead. She has broken an extremely male dominated leadership barrier and proven that a woman is able to successfully achieve a healthy work-life balance. Consistently doing the right thing for the Firm and our clients, she effortlessly leads our team to success. LBA Haynes Strand would not be the same without her talent.”

After 20 years of service, this promotion is a result of Courtney’s hard work, loyalty to the Firm, commitment to our team, and dedication to providing quality tax services to her clients. She transitioned from an intern to a full-time staff member while attending graduate school and studying for the CPA exam. This was a true test of her time management skills. When LBAHS made the transition to paperless, Courtney lead the team with the development of internal best practices and training procedures.

Please join us in congratulating Courtney Ageon on this exciting promotion! Connect with Courtney on LinkedIn.

NCACPA Day of Service 2018

LBA Haynes Strand, PLLC participated in the North Carolina Association of Certified Public Accountants (NCACPA) Annual CPA Day of Service on September 21, 2018. Our employees volunteered their time with various organizations throughout North Carolina and focused on giving back to our local communities.

Our Mount Airy office focused on collecting canned food in order to support Yokefellow Ministry. Yokefellow assists others in need during times of crisis. One way they provide assistance is with food. There were collection boxes set up in the Mount Airy office for collections throughout the week and our team collected additional donations at Lowes Foods on Friday, September 21st.

The Matthews office of LBA Haynes Strand held a collection drive for pet food and supplies to donate to the Humane Society of Charlotte. Our team set up a table at Lucky Dog Bark & Brew on September 21st to collect remaining donations from those who were not able to stop by our office during the week. We had great participation from both our internal staff, clients, and members of the local community.

Our Greensboro office volunteered their time at BackPack Beginnings on September 21st by packing bookbags. BackPack Beginnings’ mission is to deliver child-centric services to feed, comfort, and clothe children in need.

Not only did some of our Greensboro team volunteer at Backpack Beginnings on Friday September 21st. We also had a few of our employees give back at the Out of the Garden Project the day before. You can read more about their efforts on the NCACPA blog!

The NCACPA Day of Service is one of the many ways our team gives back throughout the year. We have an annual LBAHS Day of Service and are always looking for new ways to become more involved in the community.

Dental Practice Lifecycle: Sale of Practice & Retirement

After the start-up and acquisition phase and years of hard work growing your own dental Practice, you may be ready to hang up the gloves and retire but are not sure where to start.

The answer is to build a plan that starts years before you actually plan to retire or sell.  Having this conversation with your Practice advisory team in advance allows us the opportunity to guide you to that point and help achieve the maximum results for you and your Practice.

During this pre-retirement/sale time we find and develop answers for the hard questions like “What’s my Practice really worth?” and “How much cash will I receive from the sale?”  Using the answers to these questions we review options and prepare a plan to guide you to your best outcome.

Our Capital Advisors team has the ability to provide sell side representation to Practice owners in order to focus on finding qualified buyers. Over the years we have developed a process that allows us to find our clients the “right buyer” that may otherwise not have been found. This “right buyer” is the one who sees the most value in your Practice and is able to provide you, the seller, with the right offer.

Remember – the end of your dental Practice lifecycle is the beginning of the next generation’s lifecycle!

Continue checking back for our continuing dental blog series. Over the next few months, we will address subjects such as buying a dental practice, profit & loss statement explanation, and how sales tax impacts dentists, along with many other informative topics.

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NC Sales and Use Collections on Remote Sales

The North Carolina Department of Revenue issued directive SD-18-6 on 8/7/18 to interpret the North Carolina sales and use tax law as a result of the United States Supreme Court decision in South Dakota v Wayfair.

Remote Sales Subject to Tax

The rules are effective prospectively to sales after October 31, 2018 by remote sellers that do not have a physical presence in North Carolina.  This prospective treatment does not apply to sellers that have a physical presence or other obligation to collect and remit North Carolina sales and use tax.

Remote sellers having gross sales in excess of $100,000 sourced to North Carolina or 200 or more separate transactions in the previous or current calendar year are required to register, collect, and remit sales and use tax effective the later of November 1, 2018 or 60 days after the remote seller meets the threshold.  Remote sellers that do not meet the threshold may voluntarily register with the NCDOR and collect and remit sales and use tax.  Remote sellers may voluntarily begin collecting and remitting sales and use tax any time prior to November 1, 2018.

Engaged in business is defined, in part, as making a remote sale if one of the conditions in G,S, 105-164.8(b) is met, basically if they advertise or solicit business in NC in any way through the media, internet, or distribution of catalogs.

Remote sale is defined as “(a) sale of tangible personal property or digital property ordered by mail, by telephone, via the internet, or by another similar method to a purchaser who is in the State at the time the order is remitted, from a retailer who receives the order in another state and delivers the property or causes it to be delivered to a person in this state.  It is presumed that a resident of this State who remits an order was in this State at the time the order was remitted.”

Remote sellers can register completing an online application through the Streamlined Sales Tax Registration System.

Dental Practice Lifecycle: Growth & Maintenance

After the start-up and acquisition phase is complete and you have a regular patient base established, you’ll find yourself in the growth and maintenance phase.  At this point, you may be wondering how your Practice compares to others in the industry or maybe you’re ambitious and curious about growing into a two-Practice owner (three-Practice, four-Practice or more)!

As you progress through your Practice ownership lifecycle, benchmarking becomes increasingly important.  This helps to provide information on areas your practice may be able to improve upon.  For example, did you know the average dental Practice pays about 18.4% of their revenues in clinical wages?  This means if your Practice collects $50,000 in a single month, about $9,200 should be paid in wages to your hygienists and assistants that month.  How does your Practice compare?  Reviewing these industry averages monthly can help guide decision making within your practice.  We will go into more detail on these averages later in this blog series.

If owning one Practice is going smoothly, you may be curious about the possibility of purchasing/starting a second Practice.  Our team is able to work alongside you to review your current Practice’s financial standings and the different ways you can grow into a two-Practice owner.  We work to answer questions like ”How will hiring an associate at my first practice impact my bottom line while I’m working at the second practice?” and  “Can the cash flow of my first Practice help support the second Practice?” along with many others.

Our dental team has worked to develop various financial tools to help measure your practice against others and its potential for growth.  These tools include our monthly industry standards comparison to your practice and our Practice Scorecard which can be used to review options for the purchase of additional Practices.

Check back next week for the third and final phase of the Dental Practice Lifecycle: Sale of Practice & Retirement.

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