Join hosts Simplify Dentistry hosts Dr. Mustafa Shah-Khan and Dr. Richard Offutt as they interview Jonathan White, CPA, founder of Jonathan W. White CPA PLLC, a dental-specific accounting firm serving over 300 practices. This episode dives deep into year-end tax planning, practice management strategies, and critical financial decisions dental practitioners face. From equipment purchases to DSO considerations, learn valuable insights for optimizing your practice's financial health.
👤 Featured GuestJonathan White, CPA
Founder and President of Jonathan W. White CPA PLLC
Specializes in dental practice accounting and tax services
Former auditor supervisor at a regional audit firm
Eight years of service in the United States Marine Corps Reserve
Services over 300 dental practices across all specialties
00:01 - Introduction and guest background
01:34 - Q4 planning strategies and importance of accurate numbers
05:21 - Discussion of vehicle expenses and documentation
16:23 - Retirement planning and compensation strategies
31:39 - Equipment purchase considerations and tax implications
41:28 - Technology in accounting and practice management
45:22 - DSO considerations and valuation factors
Year-End Planning
Start Q4 planning early with accurate financial data
Work with your CPA on projections before major purchases
Consider both immediate and long-term tax implications
Equipment Purchases
Understand basis implications before making major purchases
Consider cash vs. financing impact on tax benefits
Plan for long-term payment implications
Practice Management
Staff costs trending around 27% of revenue post-COVID
Hygiene costs significantly increased since pre-COVID
Insurance reimbursement rates affecting profitability
Tax Documentation
Vehicle expenses require detailed mileage logs
Business use must exceed 50% for vehicle deductions
Maintain thorough documentation for all business expenses
DSO Considerations
Best for practices within 2-3 years of retirement
Count only upfront cash in valuations, not rollover equity
Consider lifestyle and long-term financial impacts
Staffing Costs:
Traditional target: 25% of revenue
Current reality: Trending higher due to increased hygiene costs
Post-COVID adjustments needed for profitability
Technology Integration:
Important for both practice and accounting
Modern dashboard reporting systems
Real-time financial tracking capabilities
Equipment Purchases
Consult CPA before major purchases
Understand S-Corp basis implications
Consider cash vs. financing impacts
Family Employment
Document duties and responsibilities
Set reasonable compensation levels
Consider retirement plan implications
Vehicle Expenses
Maintain detailed mileage logs
Track business vs. personal use
Document business purpose for travel
EBITDA Focus
Critical for practice valuation
Important for DSO negotiations
Monitor profitability metrics
DSO Sale Factors
Timing considerations
Upfront cash vs. rollover equity
Working period requirements
Website: Contact Jonathan W. White CPA PLLC for dental-specific accounting services
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Topics: dental accounting, tax planning, practice management, dental finance, DSO valuation, practice profitability, dental business, tax strategy, dental practice management, dental CPA