Key Ways To Improve Cash Flow And Reduce Your Tax Burden During Tax Season

With each new year comes new opportunities and responsibilities—there are new things to figure out. And while most dentists love the idea of launching off the new year by trying new tax strategies, even more of us like waiting until the last minute to do just that. 

HMP Consultants is a business that performs the whole nine yards: bookkeeping/keeping payroll, advisory services, income tax prep, tax estimates, tax planning, and more.

This is a big deal: many CPAs only take care of one part of the package. The fact that Harsh operates within the niche of dentistry means he keeps things even cleaner than other CPAs who advertise the same services.

It’s time to take a step back and launch off on the right foot. That’s why Harsh Patel, the owner of HMP Consultants, was so happy to step in for this week’s episode and provide some advice.

Their goal is to help practices maximize their growth by implementing tax-saving strategies and ensuring all compliance needs are done well on time.

Every dentist is in a different phase of their career and, if they have the right CPAs on their team, then they’ll always be leveling up.

HMP Consultants is equipped to handle all your accounting needs, no matter how complex. Whether you require assistance at the corporate or personal level. HMP is ready to serve as your tax planners and accounting advisors.

It makes sense: Harsh has a lot of family in the medical field.

Harsh has been working with dentists for some time. His dental clients often come to him with situations he wishes he saw sooner, to say the least.

So, what should we be thinking about this New Year?

Common denominators:

Business structure:

This is a common problem with new dentists who’ve just acquired a practice.

They need advising and consulting guidance.

Their whole structure is wrong. 

How so?

There are so many business structures to choose from, and that’s half of the battle. The right structure might come in the form of a local proprietorship, partnership, LLC, corporation, S-corp, DSOs—the list goes on. While S-corp is one that Harsh particularly advises, every situation is different. 

The objective: cut costs. Don’t overpay on taxes by knowing your books. 

Scaling…

We’re constantly leveling up as practice owners…

It’s always good to get a fresh set of eyes—there’s no harm in that. Startup with a consultation from HMP Consultants and, if there’s anything that needs to be reconstructed, they’ll handle that. Simply undergo their Benchmark Analysis, see how other practices are performing through various software, and decide what pivots you want to make.

Ways to improve cash flow:

Go to someone who knows what they’re doing.

Keep track of each month’s balances.

Dabble in projections—but don’t take them too seriously.

Learn about:

How can you reduce the tax burden, according to Harsh?

How can you stay on top of your finances better?

How do you handle “familial factors,” “taking the throne,” etc…?

Kids?

Marriage?

Elderly parents?

How do you keep your eyes set on the business when life is changing around you, responsibilities are growing, etc.?

Hint: It has something to do with tax planning, and it’s not a one-time thing—it’s year-round.

How close do you want your CPA to be to your family?

This is common sense: You don’t want to get thrown under the bus, especially with all of the new laws and regulations. 

What got Harsh interested in working with people like us?

How do HMP Consultants offer the education component?

What are some finance things that a dentist should be thinking about in 2023?

What tips does Harsh have for you?

And more!

If you want to get in touch with Harsh, he’s offering a free tax and accounting analysis session to practice owners where his company will immediately address issues and offer various levels of consulting.

NIFTY DEAL:

Offering a free tax and accounting analysis session to practice owners.