Watch this short video to learn more about the services SRJ Chartered Professional Accountants provide for Dentists.
Dentists
Accountants & Tax Specialist for Dentists Toronto
If you are a professional dentist in Toronto or Mississauga and looking for an accountant or tax specialist, SRJCA is your answer. We are a team of professional accountants who specialize in providing services to the dentists in the Greater Toronto Area. We can meet your accounting needs, irrespective of the stage in which you are with your dentistry career. We can help you incorporate, if you are looking to set up your own practice, or we can ensure the smooth functioning of the accounting side of your practice, if you are already running one. Our aim is to manage the accounting and taxation needs of dentists. We provide the following services:
- Incorporating a professional dental practice and structuring
- Accounting and bookkeeping services
- Payroll management
- Profit maximization
- Preparation of financial statements
- Filing Corporate tax returns (T2)
- Sole proprietor dentist tax return (T1)
- Tax planning, keeping in mind your tax needs
- Salary vs. dividend comparison
- Income and capital tax relief
Dental Accounting Services
We help dentists in retaining more profits and net income by reducing their tax burdens. We specialize in taxation for dentists and dental practices, and can help in maximizing their take away income, all while growing their practice. We help our clients in taking complete control of their finances and needs and create an understanding of their long-term aims.
While running a practice, there are a lot of things that come up and aren't taught in dental schools. It is our job to make sure that accounting and taxation is the least of your worries. We will ensure that your books are complete at the end of the year, your staff payrolls are run on time and your cash flow is satisfactory, on a monthly basis.
We help you achieve your financial goals, be it planning and saving for a retirement, saving up for your kid's college or buying your dream house, we are here to help you achieve your dreams. We can help you in making financial decisions like salaries, incentives, payroll taxes, pension plans, equipment purchase, buying vs. leasing and other financial matters.
Tax Specialists for Dentists
As accountants who specialize in catering to the accounting and taxation needs of healthcare professionals such as dentists. We help dentists make the correct financial decisions to get their practice started off right and help them retain as much of their taxable income as legally possible. Our firm is well equipped to work with the latest accounting softwares to ensure timely and proper bookkeeping.
We have a proactive approach and use our expertise and tailor it to your specific needs and deliver more than what you expect from your Chartered Accountant. This allows our clients to focus on providing healthcare services and serving their patients while we take care of their financial and accounting needs. Our specialized bookkeepers have experience in working with dentists and are knowledgeable in practice management software so that bookkeeping is maintained correctly and efficiently.
We make sure to provide the best possible services to our clients when it comes to their taxation. It does not matter if you are a sole owner who wishes to file their personal tax returns, one of the partners in a partnership or own a Professional corporation, we can help you with your taxation requirements. As having years of experience in providing taxation for healthcare professionals we can help our clients in various ways, all the while making sure that they do not pay taxes any more than they should and can avail any relief or subsidy offered to them by the government and relevant authorities.
Our team of Chartered Professional Accountants help develop tax efficient compensation plans for our clients and their families. Our team also helps in-house professionals incorporate their businesses. We offer tax advisory services like estate planning, year-end tax planning and provide guidelines in selling and buying of assets without facing severe tax implications.
Business Advisory Services for Dentists
If you are thinking of buying or selling a dental practice, we can help you walk through this ordeal. Our Chartered Business Valuators are experienced professionals who help in providing valuations services and can make sure that you are compensated fairly. Here are a list of services we assist other dentist and practice owners with:
1. Fiscal Year Corporate Tax and Financial Statements — Prepare Year-End Documents for all companies including Financial Statements - Notice to Reader, T2 Corporate Tax Return, GST/HST Monthly Returns, T4/T5 slip and information returns, and Canada Revenue Agency Correspondence and audit assistance.
2. Accounting Infrastructure Review and Process Implementation — Introduce team and assess current processes. Review and document detailed processes within accounting infrastructure including bookkeeping, accounts payable, accounts receivable and tax compliance. Assess and finalize software and 'app stack' to bring forth efficiencies.
3. On-Going Monthly Managed Back Office Services — Monthly data entry and transaction review, bank account reconciliation, credit card expense identification, QuickBooks Online review, general bookkeeping support, management reports, accounts payable support, bi-weekly payroll processing and recording.
4. Senior Financial Management Services — Provide monthly financial reporting, performance against budget reports, help manage cash flow, participate in budgeting and forecasting, and coordinate with management team for ad hoc reports and advisory.
Tax Advantages for Dentists
- Tax efficient compensation plans for you and your family
- Incorporation and structuring for dental practices
- Estate planning and year-end tax planning
- Salary vs. dividend optimization
- Income and capital tax relief strategies
Dentists
Watch this short video to see how SRJ supports dentists with expert Business Consultations in Toronto and across Canada.
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SRJ Chartered Accountants has two conveniently located offices in the Greater Toronto Area.
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Client Success Stories
Alyza Raithatha - Integra Health Centre
Craig Gibson - Scotiabank
Abraham Top - Diamond and Diamond Lawyers
Shayan Rashid, CPA
Co-Founder
Shayan Rashid assists dentists by providing strategic advice in the areas of tax, accounting, and business growth all around Canada. Shayan helps dentists identify complex financial ideas to enable them to effectively manage and grow their business.
Junaid Usmani, CPA, CA, MTax
Co-Founder
Junaid Usmani supports dentists in growing their business by providing them with tax and business growth strategies. Junaid helps maximize their profitability by understanding the complexities of the healthcare industry.
Tracie Heier, CPA, CA, MPAcc
Partner
Tracie helps dentists in managing their business by providing them with accounting and tax services. With over a decade of experience, she helps dental clinic owners stay organized, compliant, and financially strong as they grow their practice.
FAQ
Frequently Asked Questions
As a business owner, dentists are subject to various tax requirements. When a dentist is a sole proprietor or partner, then they are liable to personal income tax filing, whereas incorporated dentists are liable to corporate income tax returns. When the practice employs workers, the dentist must pay payroll taxes, such as Canada Pension Plan (CPP) and Employment Insurance (EI) benefits and deductions. Dentists should submit T4 slips on behalf of their workers, with the wages and deductions being reported correctly. Dentists can be required to submit T1 general returns (when they are sole proprietors) or T2 corporate returns (when they are incorporated businesses).
To manage a dental practice’s accounts effectively, dentists should maintain detailed financial records and use reliable accounting software such as QuickBooks or Xero. These tools help track income and expenses in real-time, allowing dentists to stay on top of their financial situation. It’s important to keep personal and business finances separate to avoid confusion during tax time. Monthly reconciliations of bank accounts and financial statements ensure that all transactions are accounted for and any discrepancies are addressed promptly. Regularly reviewing cash flow will help dentists understand their financial health, predict future expenses, and ensure that they have the funds to cover operating costs. A detailed budget should also be created, considering monthly expenses like rent, payroll, utilities, and supplies.
Dentists can claim a variety of business expenses that are necessary for running their practice. These include the cost of medical supplies such as dental tools, equipment, and consumables like gloves and disinfectants. Other deductible expenses include office rent, utilities, and insurance premiums for the clinic. Salaries and wages paid to employees, including dental hygienists, receptionists, and assistants, are deductible. Marketing and advertising costs incurred to promote the practice, such as website expenses and local advertisements, can also be written off. If the dentist uses their vehicle for business purposes, such as traveling between office locations or visiting patients, a portion of the expenses related to the vehicle, including gas, insurance, and maintenance, can be claimed.
Yes, accountants can play a crucial role in managing cash flow for dental practices. Dentists need to regularly forecast their cash flow by predicting monthly income and expenses based on patient visits, product sales, and payments from insurance companies or patients. It’s essential to stay on top of accounts receivable, ensuring that payments are collected promptly to avoid any cash flow disruptions. Implementing an efficient billing and invoicing system can help improve the speed at which payments are received. Proper expense management is equally important.
Yes, dentists can claim tax relief on dental equipment through capital cost allowance (CCA). This allows dentists to deduct the cost of purchasing equipment such as dental chairs, X-ray machines, and other essential tools over time, rather than all at once. The equipment will fall into a specific CCA class, and dentists can claim a percentage of the cost each year as a depreciation expense. The amount claimed depends on the asset type and its assigned CCA class according to the CRA’s rules. This provides significant tax relief by reducing taxable income over the useful life of the equipment.
Dentists have several key tax deadlines depending on their business structure. If a dentist is operating as a sole proprietor or in a partnership, they need to file their personal income tax return (T1) by April 30th of the following year. However, if they are self-employed, they receive an extension until June 15th, but any taxes owed are still due by April 30th. For dentists who operate a corporation, the corporate tax return (T2) is due six months after the end of the corporation’s fiscal year. For example, if the fiscal year ends on December 31st, the return would be due by June 30th. Dentists who are registered for GST/HST must file these returns either quarterly or annually, depending on the volume of their taxable sales, and ensure the collected GST/HST is remitted on time.