How dental offices can save at tax time
There are many things that dentists need to account for outside of oral health such as strategy, budgeting, cash flow forecasting and more. Another important thing you need to consider, especially near the end of the year, is the state of your dental equipment.
Reliable equipment is critical to providing high-quality care, but it can also be a major expense. If you plan on purchasing new dental equipment, you should consider doing it before the financial year closes. Doing so presents tax-related benefits that could help your office save money!
Save on taxes
As a small business owner, you know that your taxes are based on both your business’ income and its expenses. The best way to spend less in taxes is to lower your taxable amount — and an easy way to do this is to spend money before the year ends. Important purchases like new equipment are often very expensive. And while it might seem difficult to make large purchases on your dwindling annual budget, it’s the best way to lower your taxable amount.
If you need further convincing, consider the immediate benefits that new equipment will bring to your office. You may be able to service more patients, perform procedures more smoothly, and perhaps even boost your reputation by having the latest dental technology. These immediate benefits can have long-lasting effects that could encourage referrals, ultimately helping your bottom line.
Purchasing new dental equipment now not only gives you these operating benefits, you can also save on taxes in the short-term. Purchases made right after the calendar turns will delay any tax-related benefits until the following tax season — which could be over a year away! So why not reap the extra benefits sooner?
Finance your equipment
It’s not always feasible to make a big purchase out-of-pocket, especially at year-end, but you can still get important tax-related benefits when you finance your equipment purchase. Financing through a trusted bank is a great “happy medium” between budgeting and benefits—you can still lower your taxable amount without sacrificing all of your remaining annual cash flow.
Once you decide that you’re ready to invest in new equipment now, you’ll need to find a lender. Find a bank with a dental specialty that can tailor financing to fit your individual circumstances. Plus, collaborating with a local banker, like Commerce Bank, includes a few extra benefits, like ongoing financial advice, industry contacts and insights that could save you time and money long-term.
