JP Blevins

J.P. Blevins

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So far J.P. Blevins has created 15 blog entries.

Spring Cleaning Part 3

By |May 4th, 2015|

Employees are Your Greatest Asset

A successful practice is often the result of quality human capital. Are you taking full advantage of your employees’ skills and experience? You should regularly be engaging with staff to ensure that all members have a stake in the success of the business. A simple way to communicate and get feedback is to schedule regular staff meetings. Listen to employees’ suggestions and allow them to attend relevant training courses. Your staff will be more involved and productive, which may boost your practice’s finances. A solid system of checks and balances will ensure your practice’s financial health.

Spring Cleaning Part 2

By |April 20th, 2015|

Financial Best Practices  

Your practice’s finances should be consistently top of mind. You should be monitoring and tracking accounts receivable, collections, and credit adjustments on a weekly or monthly basis. From here, pinpoint your current status and chart a goal for the coming year. One way to improve accounts receivable, for example, is to implement a system that identifies accounts unpaid for 90 days so that you can address these accounts first.

If your practice has diversified into elective procedures, you may notice that many patients need to pay off more complex treatments in installments. Make sure you have a financial plan to handle payment schedules. Your plan could allow patients to pay an initial installment at the time of service, and then allow them to pay the remainder over two to three months. If you can’t afford to offer credit terms to your patients, consider partnering with a company that offers patient financing.

Spring Cleaning Part 1

By |March 30th, 2015|

It’s that time of year again-spring cleaning. This annual cleaning ritual shouldn’t be limited to your home, though. Reflect on your dental practice, and you might find a number of ways to tweak systems or procedures to improve your bottom line. Incorporating this type of analysis into an annual routine could reap rewards by keeping your office current and your staff engaged.

First, break down your practice into four main areas: operational, financial, human resources, and marketing. Next, examine your current processes and systems for each area to determine what is working and what needs some improvement.

Smooth Operations

Operations are the heart of your practice. They include your scheduling systems, equipment, and facility. Your success hinges on keeping your practice running smoothly, and your staff occupied. A good scheduling system should take the administrative burden off your staff. Even an automated scheduling system may not be as efficient as it could be.

Many practices think they are operating at full capacity when they […]

Why Lease When You Can Own?

By |February 27th, 2015|

By: J.P. Blevins

Are you currently debating whether to lease or purchase space for your new practice? If so, the answer is quite simple: Purchasing the real estate will likely prove to be more financially beneficial when it’s time to retire.

You might ask, how so? Purchasing commercial real estate opens up the door to years of tax benefits, and the value of your property should appreciate over time. In some areas, it may even be ultimately cheaper to purchase and outfit a building as opposed to building out the office you are renting. Plus, the owner is given the opportunity to construct the office space to their preference rather than needing permission to build out.

Another advantage to owning is that when you choose to retire, you can sell the practice and property or sell only the practice and lease the commercial property. If you purchase commercial real estate with space for tenants, the owner will have opportunities for additional cash flow […]

Equip Your Practice Now And Save With Tax Incentives III

By |September 23rd, 2014|

Qualifying Purchases

Most tangible goods including off-the-shelf software and business-use vehicles (with some restrictions) qualify for the Section 179 deduction.  Equipment and software must be placed in service during the tax year for which the deduction is taken in order for the deduction to apply. But you don’t necessarily have to pay for the equipment in the year it is deducted. You can purchase and install new equipment in December, write off the full purchase amount in 2011, and start paying the financing on your equipment in 2012 using some of the savings from your deduction!
 
So now is an excellent time to upgrade your practice with the latest in dental equipment and software. It’s unlikely you’ll find a better opportunity to build your business with significant financial assistance from the U.S. Government.

Equip Your Practice Now And Save With Tax Incentives II

By |September 15th, 2014|

How Section 179 Works
Under Section 179, businesses can deduct the full cost of qualifying equipment and/or software purchased or financed during the tax year, up to the maximum Section 179 Deduction Limit.  “Bonus” Depreciation is offered on new equipment purchase amounts above the Deduction Limit, and there is a cap to the total amount of equipment purchases that qualify for the deduction.

–        2011 Deduction Limit — $500K (up from $250K previously).  Deduction can be used on new and used equipment, including new software.

–        2011 “Bonus” Depreciation – 100% (up from 50% previously).  Taken after the $500K deduction limit is reached.

–        2011 Limit on equipment purchases — $2 million (up from $800K previously).

There are limits to the Section 179 deduction.  In addition to the cap of $500,000 in deductions for 2011, the deduction begins to phase out dollar-for-dollar after $2 million is spent by a given business (making it a true small and medium-sized business deduction).

Sample Section 179 Deduction (adapted from www.section179.org ):

Equip Your Practice Now And Save With Tax Incentives

By |September 8th, 2014|

Tax Incentive for Small Business
Section 179 is an incentive created by the U.S. Government to encourage business owners to invest in their companies through equipment purchases.  The goal of the legislation is to provide genuine tax relief for small businesses, and since its introduction millions of small businesses have taken advantage of Section 179 and are gaining real benefit.  Under the code, if you buy or lease qualifying equipment, you can deduct the full purchase price of the equipment from your gross income, saving you potentially thousands of dollars on the actual cost of the equipment.
Typically businesses can write off major purchases over a period of five years. For example, equipment that costs $100K might be depreciated at a rate of $20K per year for five years. But it’s a greater advantage to be able to deduct the entire cost of equipment in the year the purchase was made. Businesses might even make more equipment purchases with this type of […]

Key Steps To Managing Your Financial Profile V

By |September 8th, 2014|

Watch for Credit Repair Scams
The internet, TV, newspapers and radio are filled with ads from companies offering to remove negative information from your credit report for a fee.  They cannot legally “repair” your score and may in fact suggest that you commit fraud by creating a new credit identity.  Only you can improve your credit score through discipline and patience. Start working to improve your score at least six months before applying for major financing like a practice acquisition loan.

Key Steps To Managing Your Financial Profile II

By |August 6th, 2014|

Pay Bills On Time

NEVER make late payments!  Making timely payments is one of the most important and possibly among the easiest things you can do to improve your credit record.  Set up automatic payments from your bank if necessary to make sure payments on credit cards and installment loans are made on time. This not only ensures a better credit score, but helps you avoid late fees and penalty interest rates as well.

Key Steps To Managing Your Financial Profile

By |August 6th, 2014|

To establish and grow your practice to its full potential typically requires periodic financing. To ensure you can qualify for a loan and get the best rates available, it’s critical to have a strong financial profile – and the single most important thing you can do to improve your financial profile is manage your credit score.  Here’s how:

Understand Your Credit Score

Your FICO credit score distills all the information in your credit report, producing a single number that lenders, employers, landlords and others use to determine your credit worthiness.  Scores range from about 300 to 900, with the vast majority falling in the 600-700 range.  A score below 620 indicates “high risk” and could make financing difficult to obtain, while a score of 750 or above may qualify for the best possible rates.

The key factors influencing how a credit score is determined are shown below in order of significance:

Past delinquency:  The FICO formula assumes that people who have failed to make […]

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