Kevin Bray - Dental Accounting Group

10 December, 20226 May, 2020 by Kevin Bray

Updated 5/6/2019:

Disclaimer: What follows next is general information and not legal or accounting advice. We are not your attorney or CPA and every situation is different. You should call your attorney or CPA for specific advice with regards to the topics of this presentation. If you are not receiving the guidance you need, we can entertain bringing you on as a paying client.

Since our last update on April 15, 2020, we have received additional guidance from the Treasury Department & SBA in regards to PPP loans and state governments across the country are outlining phased opening of the economy.

Today we are going to cover:

A. Paycheck Protection Program Loans: Additional Regulatory Guidance
B. Paycheck Protection Program Loans: Forgivable Loan Calculations
C. Unemployment Benefits for Owners and Self-Employed: Dealing
with Application Headaches
D. Getting Back in Business: Covid 19 Safety Protocols & Overcoming
Patient’s Safety Concerns

Source Document Links & Additional Information:

Link to Prezi presentation: https://prezi.com/view/d7Pt2asv3F75UPo4QGBX/

Kevin manages marketing, business development, and customer success for Dental Accounting Professionals LLC & Benton Bray PLLC. He is highly analytical, creative, and forward thinking in his approach to working with clients. His background is in commercial real estate with a focus in dental office leasing and investment sales. Kevin’s passionate about investing for the future and implementing new technologies to streamline outdated workflow processes to increase bottom line results.

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10 December, 202215 April, 2020 by Kevin Bray

Updated 4/15/2019:

Since our last update on April 1, 2020, the CARES Act PPP loan program has launched and we have received additional guidance from the Treasury Department.

Today we are going to cover:

A. Paycheck Protection Program (PPP) Loans
B. Unemployment Benefits for Owners
C. EIDL Grants
D. Extended Tax Deadlines
E. General Update on: Retirement Plan Distributions, Status of
Add-On Relief Legislation, and When Will Businesses Reopen

Source Document Links & Additional Information:

Link to Prezi presentation: https://prezi.com/view/jj3dXPtPAn8ySuRnBCMK/

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21 July, 202015 April, 2020 by Kevin Bray

Let’s face it. Did you go to dental school to do bookkeeping?

I would imagine (and hope) your answer is “No.”

Let’s face it. Did you go to dental school to do bookkeeping?

I would imagine the answer is “No.”

You should be focusing your time on the profit generating aspects of your business. Your hourly bill rate is better spent chair-side with patients. Leverage our team to take care of the numbers and compliance headache for you. Let us simplify your accounting workflow process.

And no… you should NOT hand over your bookkeeping to a “trusted” employee. This opens the floodgates to potential fraud & embezzlement and adds an awkward dynamic to the team when one staff member has a window into your financial world. You should keep these details private.

Can you do it yourself? maybe. Can your spouse figure it out the basics of posting expenses? probably. Chances are there will be reconciliation errors or missed fillings… we see this all of the time. We are the problem solvers at the end of the year. Why not chase perfection throughout the year? Having a clean set of bookkeeping records is important to understand the financial health of your business.

I preach this all of the time to business owners. You should surround yourself with experts so you can be on a “Need to Know” basis to have more time to focus on what’s important (being chair-side with patients). Stop the DIY mindset. Leverage is key to exceptional financial results in your business. Leverage our team so you can gain more time back in your day, month and year to focus on leveling up your practice.

Ready to get started? Schedule time with our team to discuss next steps.

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10 December, 20221 April, 2020 by Kevin Bray

Updated 4/1/2019:

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Since our last update on March 25, 2020, the CARES Act was passed and signed into law late on March 27, 2020 and the Department of Labor has issued additional guidance on implementation of the Families First Coronavirus Response Act (FFCRA).

Today we are going to cover:

A. Recap of FFCRA and DOL Guidelines
B. Recap of Standby Unemployment
C. SBA Disaster Assistance Loan program
D. CARES Act – Paycheck Protection Program loans (Forgivable Loans)
E. CARES Act – Unemployment Assistance
F. Emergency EIDL Grant

Source Document Links & Additional Information:

Link to Prezi presentation: https://prezi.com/view/GG9AuKG8AICpCDs5bpIq/

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10 December, 202225 March, 2020 by Kevin Bray

Updated 3/25/2019:

COVID-19: Employee & Business Implications for Practice Owners

Covid-19 Update: Employee& Business Implications for Practice Owners

Employee Issues

Unemployment Qualification & Application
Standby Unemployment
Waiver of job search requirement
Paying out accrued PTO/sick leave
Working while on standby unemployment
Impact on employer’s experience rating
Continuation of medical insurance benefits
Where to go for information
- wa.gov/newsroom/covid-19
- blob.core.windows.net/esdwa/Default/ESDWAGOV/Unemployment/ESD-Handbook-for-Unemployed-Workers.pdf

Disaster Relief Payments under Sec 139 [Seek the advice of your tax adviser!]

General rule – gross income shall not include any amount received by an individual as a qualified disaster relief payment but remain 100% deductible by the business.
In IRS Notice 2020-18, the IRS stated that the President’s emergency declaration constituted a federally declared disaster for purposes of Section 165. Thus, the COVID-19 pandemic satisfies the requirement in Section 139 for a federally declared disaster.
As a result, beginning immediately, employers may provide tax-free payments to employees — while still claiming a full deduction for the payments — provided the payment is to reimburse or pay the employee for “reasonable and necessary personal, family, living, or funeral expenses” incurred as a result of COVID-19.
Payments are NOT covered by Section 139 if they compensate employees for expenses that are otherwise compensated for by insurance or that are intended to replace lost income. Thus, payments pursuant to the Families First Coronavirus Response Act for sick pay or family medical leave remain fully taxable to the employee.
There is no IRS Regulatory guidance and very little professional commentary regarding Disaster Relief Payments under Sec 139 so seek professional advice.

IRS filing and paying tax extension

The Treasury Department and Internal Revenue Service announced March 20, 2020 that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Federal income tax payments due on April 15, 2020 are also extended to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. The extended April 15, 2020 tax payments include any 2019 tax balance due and your 2020 first quarter estimated tax payment.
Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Department of Revenue filing and paying tax extension

The Dept of Revenue has implemented emergency measures to provide relief to all Covid-19 impacted businesses. These measures are in effect from February 29, 2020 through the end to the state of emergency (yet to be determined).
For monthly filers, a 60 day extension is available to file and pay the State taxes on all Combined Excise Tax returns due during the state of emergency period.
For quarterly filers, your Q1/2020 Combined Excise Tax return that is normally due April 30^th can be extended 30 days until May 30, 2020.
Relief applies to all taxes reportable on your Combined Excise Tax Return for returns that are due and not already paid during the state of emergency.
Request extension relief online by submitting a secure message in your myDOR account (secure.dor.wa.gov/home/login). Indicate your reason for requesting an extension such as Covid-19 temporary business closure and include reference to you UBI number. We have been advised by DOR that extensions are approved automatically. You will be notified in a few days of the approval.
Alternatively you can request extension relief by calling DOR at 360-705-6705.

Families First Coronavirus Response Act (see addendum)

Family and medical leave
Emergency paid sick time

SBA Disaster Assistance Program

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
Loan based on need up to $2.0M; 3.75% interest; up to 30 year payback
sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
business.wa.gov/site/alias__business/1563/sba-disaster-loans.aspx

Federal Relief Legislation

- Trillion $$$ relief bill in process
- Substantial small business and employee relief expected
- Stay tuned…

Business interruption insurance

Preliminary indications are “no”
Check with your insurance broker and ask for an opinion from the carrier
Congress may intervene to broaden the definition of what constitutes a triggering event for business interruption coverage

Lender assistance

Dental lenders across the board have really stepped up to provide emergency relief
Up to 90 day loan deferrals
Emergency lines of credit

Landlord Assistance

Review your lease and consult with your attorney
Force majeure clause – “Act of God”
Negotiate for lease deferral

Delta Dental Financial Support

Independent Dental Practice Reimbursement Advance Program (RAP)
- The RAP will begin to advance payments of clinical reimbursements for an eight-week period that begins within one to two weeks of the application approval (approval should take approximately one week).
- Weekly advances will supplement any ongoing reimbursement payments.
- Advances will equal 25% of the average weekly DDWA clinical reimbursement payments made to the practice’s Tax Identification Number (TIN) during 2019. The cumulative advances to any one TIN will not exceed $25,000.
- The cumulative advance will be repaid without any interest by the receiving practice in 20 equal weekly payments to DDWA beginning July 1, 2020.
Independent Dental Practice Assistance Fund (DAF)
- Grant up to a max of $15,000

Amazon Neighborhood Small Business Relief Fund

Businesses in Bellevue, Wash. and the South Lake Union and Regrade neighborhoods of Seattle — particularly those that rely on foot traffic — can apply online for a grant from Amazon’s $5 million fund. Amazon will determine on a case-by-case basis the amount of the grant your business qualifies for. Only businesses with 50 employees or less, or that take in less than $7 million in annual revenue, qualify.

Facebook Small Business Grants Program

Facebook has committed to offering up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. The grants will be provided to businesses in more than 30 countries. Information is limited, but sign up to get more details from the company when they’re available.

Preparing for getting back to work

Managing cash flow
Continuing the admin function
Billing & collections
Re-booking appointments and filling the schedule
Implement best practices
Deep clean and organize entire clinic
Work on business plan and strategies

Source Document Links & Additional Information:

Link to Prezi presentation: https://prezi.com/view/GG9AuKG8AICpCDs5bpIq/

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21 July, 20204 October, 2019 by Kevin Bray

Dental Practice Fraud: How It Happens & How to Discourage It

According to an American Dental Association survey, one in three dental practices will experience some form of employee fraud or embezzlement during their lifetime. Dental office fraud occurs more often than it should, and is often the product of poor or non-existent internal office checks and balances, too much autonomy and authority given to one specific employee, lack of oversight by the practice owner, and failure to prescreen employees adequately.

Common Types of Employee Embezzlement:

Skimming Cash

Petty cash or the occasional payment from a patient is often the first asset that a fraudulent employee targets to see if they can steal money without being detected. Fraudulent employees rationalize their misdeeds; i.e., “I am underpaid” or “the doctor makes more than enough money.” $10 turns into $100, and that turns into thousands. It is not uncommon for a fraudster to increase the magnitude of their theft as time goes on. They get braver, bolder, and feel invincible.

Deleting or Altering Transactions

Once a fraudulent employee perfects their scheme to steal money from the practice, they need to cover their tracks in the patient management system (PMS). In other words, they need to show that a payment has been made in order to clear the accounts receivable. This can be done by adjusting or deleting activity in the PMS.

Modifying Patient Checks

Patients typically pay their portion of fees on the day of service, either by credit card or by check. One fraud scheme involves a fraudulent employee telling the patient to leave the “pay to the order of” section of a check blank because they have a stamp. The stamp would be made out to the fraudsters’ own bank account using a “business-like name” that wouldn’t raise any suspicions from the patient. Without internal checks and balances that reconcile the PMS activity to actual bank deposits, this scheme goes undetected.

Refunding Patient Credits

Offices typically estimate and collect the patient’s portion of fees on the day of service and when the EOB clears; it is not uncommon for patients to have nominal credits in their account. This fraud scheme involves a fraudulent employee processing these nominal patient credits as refunds to their own credit card. Patients may not be aware that they have a nominal credit and never inquire about it. Without oversight, no one is the wiser and the fraudulent employee has successfully stolen money from the practice.

Unauthorized Expenditures

Offices commonly give a key employee (office manager) a business credit card to pay practice expenses as they arise (dental supplies, lab bills, utilities, etc.). Some offices even give that employee signature authority on the business checking account. Without oversight or protocols that are designed to monitor the practice’s financial affairs, a fraudulent employee can pay personal expenses and simply post those transactions like any other legitimate business expense.

We provide all of our prospective client’s with our Fraud Monitoring Checklist. Contact our office to learn more! info@dentalaccountingpros.com

21 July, 202021 July, 2017 by Kevin Bray

Originally posted July 3rd, 2017. Updated July 21st, 2020.

Every time we meet with a new practice owner who is in the process of a dental transition or start-up, we ask them who is on their professional team. You should have a go-to team of dental industry professionals working with you toward your business success.

Every successful Dental Transition or Start-Up has a team of professionals behind it:

Buyer-Rep/Dental Practice Consultant
Your Buyer-Rep helps you learn the process of buying a practice and fields initial purchase or start-up opportunities. Your practice consultant is your business coach and helps you identify and implement business improvement initiatives. Your coach offers expertise on best business practices – operating systems and protocols – that drive improved results in the key operating functions of your practice such as scheduling, recall, case presentation, etc.

CPA
Your CPA fills the role as one of your key business advisors, guides you on structuring your taxes to pay no more than required, and handles your tax filings in a manner that keeps you out of trouble with the IRS. Your CPA helps with the cash-flow analysis on a transition and works in tandem with your buyer-rep, attorney and dental banker to help get the deal done. You should engage with an accounting firm like ours to help set up your accounting systems and payroll about two weeks prior to closing. We recommend Gusto: https://gusto.com/partners/invite/dental-accounting-pros

Dental Banker
Your banker coordinates your financing needs for acquisition or start-up funding, real estate purchases, new equipment loans, and operating lines of working capital. Dental bankers are experts at matching loan structures to the funding need, and many times, act as a key business advisor.

Attorney (With Dental Transition or Start-Up Experience)
Your attorney is instrumental in making sure your contracts for acquiring a practice or real estate, employing an associate doctor, adding a partner, leasing a clinic facility and so forth are structured to protect your interests and safeguard your business.

Real Estate Broker
Commercial real estate brokers help negotiate a new lease, renewal or purchase of real estate for your dental practice. Most tenant-rep brokers are paid by the landlord when representing you (the tenant) on a new lease or renewal. They know what lease rates should be and what market concessions you should be getting in the deal. These terms are always changing as market forces change, which is why it’s important to enlist the services of a qualified broker.

Dental Accounting Pros helps with organizing your accounting systems and setting up payroll prior to acquiring or starting up your new practice. We work in collaboration with Benton Bray PLLC to offer tax services, business advisory, and continuing education.

Need help with your transition, start-up or need quality accounting services? Schedule an intro Zoom meeting with our team to discuss next steps.

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(425) 739-0300

I would imagine (and hope) your answer is “No.”

Ready to get started? Schedule time with our team to discuss next steps.

Dental Practice Fraud: How It Happens & How to Discourage It

Common Types of Employee Embezzlement:

Need help with your transition, start-up or need quality accounting services? Schedule an intro Zoom meeting with our team to discuss next steps.

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Phone

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(425) 739-0300

Email

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