How Can You Benefit from a Specialist Dental Accountant?  with Alan Suggett - Head of  Dental Business & Partner at UNW LLP Chartered Accountants Pt.2

‘With a dental specialist Accountant, you have someone who understands how dental businesses operate and in particular dental NHS contracts’  This is the second part of the interview with Alan Suggett, Specialist Dental Accountant.  Brad and Alan continue to discuss tax, practice ownership and explore the value of `key performance indicators in this episode that has value for anyone who is a dental practice owner or is considering entering this arena.  There are many aspects to consider in any business and Alan shares his wealth of expertise in this informative episode, listen in now     KEY TAKEAWAYS  The self-assessment system can produce variation, resulting in a long-time period without paying any tax or national insurance this is followed by a catch-up period so it’s vital any associate puts away one-third of any earnings in preparation for this.  The payment of tax is now very case-specific and a series of changes brought in have resulted in incorporation being less attractive and more complicated  In the majority of cases, most young associates undertake NHS work and if you incorporate you cannot be a part of the NHS pension scheme.  Around 50% of private associates are incorporated, it gives you the ability to split your profits with your spouse or partner and can be an effective way of lowering your tax.  The best way of taking profits out of a company to date has been via dividends but now due to changes, there is more tax payable when you are taking money out of a company than when you are self-employed.  Practice ownership is still a good idea for the right people, there is more risk and stress but you can still buy a practice with a relatively modest deposit.  If you are looking at bigger and more profitable practices you will be competing with the conglomerates  It’s all about viability – you need to work out what money you could make from a practice.  When you begin as an owner you need to also be clinically and emotionally prepared for the work ahead.   A KPI system is the answer if the principles in the company understand them.  When you get the right KPI’s and work on them continually you can make improvements.  Most practices, even those larger in size don’t have dental accountancy professionals working within the practice this is in contrast to most other types of business.  With advances in technology, it is now easier to get information in a more manageable format but it still requires interpretation.  When you are considering exiting it is key to have maximised profits and gross income.  You need to take into account the varying factors – if you are selling to a corporate they will require you continue on for another 3 to 4 years after the sale and if it’s a smaller practice you need to factor in around a year to achieve a sale.  If you hire a professional it’s not just the financial value you gain but also the time you gain back.    BEST MOMENTS  ‘It’s easy to be ambitious but not really realise the work involved’  ‘What’s the magic number at the bottom of the page?’  ‘If you are measuring financial performance then you can make it better’  ‘You can’t have an expectation that the cost of savings will exceed the fees of the accountant and advice’        ABOUT THE GUEST  Alan Suggett  Alan is a Chartered Accountant and Partner in UNW LLP chartered accountants where he  is Head of the Dental Business Unit which looks after more than 500 dentist  clients throughout the UK. Alan writes regularly for the dental press, and presents at BDA seminars.  He is a member of the National Association of Specialist Dental Accountants & Lawyers (NASDAL) and a member of the technical committee, and chair of the NHS  Superannuation committee.  He is also a member of the Association of Specialist Providers to Dentistry (ASPD). Alan is the editor of the quarterly NASDAL goodwill survey which analyses all member client practice sales, purchases, and valuations.     CONTACT METHOD  T: +44 (0)7860 246 718  E: [email protected]      ABOUT THE HOST  Brad believes that everyone at any level should be focused on achieving multiple sources of income to create diversity and balance in life. He feels passionate about helping dentists work towards freedom by building wealth in different areas and helping to develop a mindset to improve one’s ability to handle the stresses of clinical life.     Still a practising dentist, Brad has implemented strategies to create a practice to allow him to carry out the dentistry he wants whilst continually expanding with loyal staff and patients. These strategies can be adapted to any dentist, whether you are an associate or the practice owner, to help bring back your passion for dentistry.     In addition to running a successful private dental practice, he has grown several other dental businesses and as an investor is growing wealth outside of dentistry to help protect his legacy for his growing family.     He is chair of the Horsforth Town Team, dedicated to the promotion and development of business in his local area in North Leeds, UK.    Due to his track record and down to earth advice, he has become sought after as a mentor and spends part of his time dedicated to mentoring dental professionals about business, mindset and personal development.     CONTACT METHOD  Brad Thornton Instagram  Brad Thornton LinkedIn  Brad Thornton Facebook