Sassetti LLC
Use this printable checklist to wrap up your dental practice’s financial year. Stay organized, maximize deductions, and start the new year on a solid financial footing.
Dental Practice Year End Checklist
Financial Records
Reconcile bank and credit card statements
Review bookkeeping for accuracy and completeness
Match invoices and payments for accounts receivable and payable
Review accounts receivable and payable subledgers for accuracy
Write off any accounts receivable bad debt, clean up credits on account that are errors, and increase bad debt provisions for doubtful accounts that you are not yet ready to write off
Reimburse the owner for any business expenses paid with personal funds
Prepare a log of the annual total and business miles driven by the owner to provide to your CPA
Review the details of your fixed asset accounts and dispose of any assets in your financial system that were sold or are no longer used in the business
Back up practice management and accounting software
Review your balance sheet and income statement for any accounts that show unusual trends and may require further attention
Income and Expenses
Categorize all expenses correctly, especially dental supplies, lab fees, continuing education, and similar items
Identify any large or unusual transactions and make sure they are in the correct expense category
Review the tax expense accounts to make sure that all taxing authority payments are in the correct tax account
Separate business and personal expenses, and ensure personal expenses are in an owner draw account
Summarize income by procedure or by provider if you are a multi doctor practice
Payroll and Staff Compliance
Verify W-2 and 1099 recipient information, including associate dentists and hygienists
Confirm payroll taxes are current
Plan year end bonuses and account for tax withholding
Make sure that any owner fringe benefits, such as S corporation medical or personal use of auto, have been added to the W-2 before year end
Schedule or confirm employee performance reviews
1099s
Make sure all vendors who are paid for services are properly set up as eligible for a 1099 when entered as new vendors
Obtain a W-9 form for every new vendor before the first payment is made to them
At year end, obtain a W-9 form for every 1099 recipient if not already on file
Deductions and Tax Strategy
Max out retirement contributions such as SEP IRA or 401(k)
Begin any retirement plan calculations that are needed for timely tax return filing
Deduct eligible equipment purchases using Section 179 where appropriate
Review continuing education, travel, and professional dues for deductions
Evaluate HSA contributions and business health plan expenses
Meet with CPA or Tax Advisor
Discuss year end purchases or deferrals
Review practice profitability and tax projections
Discuss this year and next year profitability and the benefits of strategically timing income and expenses between years
Adjust estimated tax payments if needed
Discuss any upcoming changes such as expansion, sale, or retirement
Inventory and Supplies
Conduct a physical inventory count of dental and office supplies
Remove obsolete or expired items
Compare actual inventory to recorded inventory
Loans and Liabilities
Verify balances on practice loans or equipment financing against the amounts in the financial records
Document business related interest paid
Consider early payoff strategies if cash flow allows
Strategic Planning
Set goals for next year, including production, new services, and staffing
Develop a long term plan for equipment purchases and their financing
Conduct an annual review of whether any changes to the retirement plan might result in better tax deductions or better support your long term retirement strategy
Review or revise your annual operating budget
Forecast first quarter cash flow
Legal and Entity Review
Confirm your business entity is still optimal for your situation, for example an S corporation
Renew licenses, liability insurance, and business registrations
Review or update your practice succession plan, emergency plan, and estate plan as needed
Pro tip: Dentists who proactively manage year end tasks with their CPA often uncover significant savings and avoid stress during tax season.
Ready for the new year? Use this checklist annually to help your dental practice stay financially healthy and well positioned for growth.
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