Preparing for Year-End Bookkeeping
Year-end bookkeeping is a critical aspect of managing any dental practice. It ensures that your
Gather All Essential Documentation
Compiling a comprehensive set of documents is crucial in preparation for year-end bookkeeping. This should encompass a range of financial records, such as W-2s, IRS Form #1099, IRS Form #1099 Interest, and IRS Form #1099 Dividends.
Additionally, it may involve itemized reports, including annual statements from stockbrokers, records of cryptocurrency transactions, and the IRS Form #1098 mortgage statement, among others. Collecting these documents is fundamental to ensuring your financial records are accurate and complete.
Audit Your Financial Transactions
Before filing, dental practice owners must conduct a thorough review of all financial transactions within their business. This ensures that all receipts and disbursements, including payroll, equipment depreciation, and goodwill amortization, have been meticulously accounted for.
Consider Potential Deductions
Apart from common deductions like dental supplies and payroll, be mindful of special deductions that might be applicable. For example, expenses tied to equipment purchases, ongoing education, or new owner startup costs could qualify. The tax entity status of your business (employee, sole proprietor, corporation, LLC) can affect the eligibility of these deductions.
Factor in the Following
- HSAs and Deductions: Consider Health Savings Accounts (HSAs) for potential deductions.
- IRA Contributions: Remember that your combined contributions to traditional and Roth IRAs should not exceed $6,000 if under 50 or $7,000 if 50 or older in 2022.
- ERTC Filing Deadline: Act promptly on filing amended payroll tax forms for the Employee Retention Tax Credit (ERTC), and be cautious of firms claiming expertise in these tax credits.
Opt for Bookkeeper Services
Considering a dental bookkeeping service is a wise move. Consulting an expert is valuable for dentists navigating their first-time filings as owners. Online bookkeeper services in the USA have made it easier for everyone to file their tax returns hassle-free.
If you’re looking for reliable bookkeeping services to make your tax return process easier and stress-free, you can get in touch with Dental Bookkeeping and let us take care of everything!