CPA for Dental Practices in Colorado Springs
Dedicated CPA services for dentists, dental groups, and specialists. We handle the financial side of dentistry — equipment decisions, associate compensation, practice acquisitions, and tax planning — so you can focus on your patients.
Practice Growth Planning
Whether you are opening your first practice, acquiring an existing one, or bringing on an associate, we provide the financial analysis and tax planning that supports smart growth decisions for your dental business.
Equipment Lease & Purchase Analysis
Dental equipment is a major capital commitment. We analyze lease-vs-buy scenarios for chairs, imaging systems, CAD/CAM units, and more — helping you make the choice that saves the most in taxes and preserves cash flow.
Associate Compensation Strategy
Structuring associate pay — percentage of collections, production-based, daily rate, or hybrid models — affects your profitability, tax position, and ability to recruit. We model each scenario so you can decide with confidence.
UNDERSTANDING DENTAL PRACTICE FINANCES
Dental practices face financial challenges that general accountants often miss. From equipment financing decisions to associate compensation structures, the details matter — and they require a CPA who understands dentistry.
Practice Acquisitions & Buy-Ins
Buying a dental practice or buying into a partnership is one of the largest financial decisions a dentist will make. The purchase price must be properly allocated between tangible assets (equipment, supplies), intangible assets (patient records, goodwill), and real property — each with different tax treatment.
Goodwill from a practice acquisition is amortized over 15 years, while equipment can often be deducted immediately under Section 179. A poorly structured acquisition can leave thousands of dollars in tax benefits on the table. For buy-ins, the terms of the partnership agreement — capital contributions, profit-sharing ratios, and exit provisions — all have significant tax consequences.
We help dentists evaluate acquisition targets, structure purchase agreements for optimal tax treatment, and plan for the financial realities of practice ownership — from debt service to working capital needs.
Equipment Financing & Depreciation
Dental equipment represents a substantial capital investment. Chairs, operatory units, CBCT scanners, CAD/CAM milling systems, digital sensors, sterilization equipment, and compressors can collectively cost hundreds of thousands of dollars for a well-equipped practice.
The lease-vs-buy decision has significant tax implications. Purchased equipment qualifies for Section 179 immediate expensing and bonus depreciation, providing large upfront deductions. Leased equipment is deducted through lease payments over the term. The right answer depends on your cash position, anticipated income, and how long you plan to use the equipment.
We analyze each equipment decision individually. For a new CBCT scanner, buying and taking Section 179 may save more in a high-income year. For replacing chairs across multiple operatories, leasing may better match cash flow. Our goal is to help you invest in the technology your practice needs while minimizing the tax impact.
Associate Compensation Models
How you compensate associates directly affects your practice's profitability, your ability to recruit quality dentists, and your tax position. The most common models each have distinct financial implications.
Percentage of collections ties associate pay to actual revenue received, aligning incentives but creating variability. Percentage of production rewards clinical output regardless of collections. Daily rates provide predictability but may not incentivize productivity. Hybrid models — a base salary plus production or collections bonus — offer a middle ground.
Beyond the compensation model itself, practices must consider benefits, continuing education allowances, malpractice coverage, and potential buy-in paths. Each element affects your deductions and your practice's financial statements. We model different compensation structures so you can see the bottom-line impact before making commitments.
Entity Structure & Tax Planning
Most dental practices operate as LLCs, partnerships, or corporations — and the entity choice matters significantly for tax purposes. Solo dentists operating as sole proprietors pay self-employment tax on their entire net income. Choosing the right entity structure can significantly reduce your tax burden.
For group practices, partnership agreements must address profit allocation, guaranteed payments, and how to handle varying levels of production among partners. Colorado-specific requirements — including state income tax treatment of pass-through entities — add another layer of complexity.
Beyond entity structure, proactive tax planning throughout the year helps dental practices time equipment purchases, maximize retirement contributions through SEP-IRAs or 401(k) plans, and structure compensation to reduce overall tax burden. We work with you year-round, not just at filing time, to identify and act on these opportunities.
Practice Acquisitions & Buy-Ins
Buying a practice involves purchase price allocation between equipment, goodwill, and other assets — each with different tax treatment. We structure acquisitions for optimal tax benefit and help evaluate buy-in terms for partnerships.
Equipment Financing & Depreciation
We analyze lease-vs-buy decisions for every major equipment purchase. Section 179 deductions for purchased equipment vs. lease payment deductions — the right answer depends on your cash flow, income, and practice plans.
Associate Compensation Models
Percentage of collections, production-based, daily rate, or hybrid — each model affects profitability and taxes differently. We model compensation structures so you see the financial impact before making decisions.
Entity Structure & Tax Planning
We evaluate your entity structure, maximize retirement contributions, and plan equipment purchases for optimal tax timing year-round.
HOW WE HELP YOUR PRACTICE
Business Tax Preparation
Complete preparation of your practice's tax return — Form 1065, 1120, or 1120-S — with dental-specific deduction analysis including equipment, supplies, lab fees, and CE expenses.
Learn More → IncludedConsulting & Advisory
Expert guidance on tax strategy, entity structuring, and financial planning tailored to your dental practice.
Learn More → $250/hr Ad HocBusiness Formation
LLC formation, S-Corp elections, and entity structuring for dentists launching or expanding their practice.
Learn More → AvailableIRS Notice Response
If the IRS or Colorado Department of Revenue sends your practice a notice, we handle the response. No panic, no surprise bills — notice resolution is included in our services.
Learn More → IncludedAudit Defense
In the event of an IRS audit, your CPA team represents your practice. We compile documentation, communicate with auditors, and protect your interests throughout the process.
Learn More → IncludedStrategic Consulting
Practice acquisition analysis, associate compensation modeling, equipment lease-vs-buy decisions, and entity structure optimization for dental practices.
Learn More → $250/hr Ad HocBusiness Tax Preparation
Complete tax return preparation with dental-specific deduction analysis.
Learn More → IncludedConsulting & Advisory
Expert guidance on tax strategy, entity structuring, and financial planning tailored to your dental practice.
Learn More → $250/hr Ad HocBusiness Formation
LLC formation, S-Corp elections, and entity structuring for dentists launching or expanding their practice.
Learn More → AvailableIRS Notice Response
We handle IRS and state notices — no surprise bills, included with our services.
Learn More → IncludedAudit Defense
Full audit representation and documentation support, included with our services.
Learn More → IncludedStrategic Consulting
Acquisition analysis, compensation modeling, and entity structure optimization.
Learn More → $250/hr Ad HocOUR PROCESS
Practice Assessment
We start with a 45-minute meeting to understand your practice — entity structure, number of providers, staff size, equipment needs, and financial goals.
Financial Onboarding
We connect to your QuickBooks Online, set up bank feeds, organize your chart of accounts for dental practice finances, and establish clean tracking processes.
Monthly Management
Each month, we answer questions, keep you ahead of deadlines, and provide ongoing guidance year-round so you always know where your practice stands.
Tax Preparation & Review
When tax season arrives, your books are already clean. We prepare your return, maximize every deduction, and review planning strategies for the year ahead.
Practice Assessment
45-minute meeting to understand your practice, entity structure, and financial goals.
Financial Onboarding
QBO setup, bank feeds, and chart of accounts organized for dental practice finances.
Monthly Management
We answer questions, keep you ahead of deadlines, and provide ongoing guidance year-round.
Tax Preparation & Review
Clean books flow into your return. Every deduction maximized, planning for next year.
FREQUENTLY ASKED QUESTIONS
It depends on the equipment, your cash flow, and your tax situation. Purchased equipment can be deducted immediately under Section 179, providing a large upfront tax benefit. Leased equipment offers lower monthly payments and preserves cash, but lease payments are deducted over the lease term. For high-cost items like CBCT scanners or CAD/CAM systems, we analyze both options to determine which provides the greater financial benefit for your specific practice.
The most common models are percentage of collections, percentage of production, daily rate, or a base salary plus production bonus. Each has different tax implications and financial impacts on your practice. We help evaluate which structure aligns with your goals — whether you are trying to attract new associates, incentivize production, or prepare for a future buy-in. Our consulting services include compensation modeling so you can see the financial impact before making changes.
The right entity structure depends on your practice size, number of partners, income level, and growth plans. Solo dentists and group practices each have different needs when it comes to liability protection, tax treatment, and partner compensation. We evaluate your specific situation and recommend the structure that minimizes your total tax burden while positioning your practice for long-term success.
Practice acquisitions and buy-ins involve complex financial considerations — purchase price allocation, goodwill amortization, equipment valuation, and financing structure all affect your tax position. We help dentists evaluate the financial impact of a practice purchase or partner buy-in, structure the transaction for optimal tax treatment, and plan for the ongoing financial obligations that come with practice ownership.
Yes. Our services cover general dentists, orthodontists, oral surgeons, periodontists, and other dental specialists. The core needs — tax preparation, compliance, and financial planning — are consistent across specialties, while the specific deductions and financial strategies may differ. We tailor our approach to your practice type and specialty.
Dental practices can deduct dental supplies and materials, equipment purchases and leases, office rent and utilities, staff wages and benefits, malpractice and liability insurance, continuing education and dental conferences, professional licenses and association dues, lab fees, and marketing expenses. Section 179 allows immediate deduction of qualifying equipment like chairs, imaging systems, and sterilization equipment. We identify every applicable deduction during tax preparation.
Our services include business tax preparation, 1099 preparation, IRS notice response, audit defense, and consulting. We provide year-round CPA support tailored to dental practice finances.
Ready for a CPA Who Understands Dentistry?CPA Services for Dentists
CPA services built for dental practices. Tax preparation, advisory services, and year-round support from a team that understands dentistry.Tax prep and year-round CPA support for your practice.