This may be a bold statement, but I believe that not every financial advisor is cut out to provide wealth management for dentists. What do I mean by “wealth management,” anyway? I see it as follows:
Wealth Management for Dentists
The confluence and coordinated oversight of a busy dentist’s personal and professional financial planning, investment management and advanced planning needs.
In this context, even familiarity with the general medical community won’t cut it. You are not just another doctor; you’re a dentist. You deserve deep, industry-specific expertise for maximum ability to address the many challenges that are distinct to your profession and yours alone. And that’s before we even consider your specialized accounting and tax planning needs!
The Dentist-Specific, Wealth Manager Edge
The heart of the matter is this: Ultimately, how can you, a dentist, most successfully “create” monies needed to close those uncomfortable gaps between your home and business pursuits? By working with a wealth manager who is dedicated to understanding the intricacies of your dental practice – including your chosen specialty therein – you can be best positioned to add extraordinary levels of efficiency that are likely to be missing from a generalist relationship.
For example, most general CPAs or financial planners might review your tax returns and profit & loss statements as their basis for calculating earnings and forming a plan. A wealth manager and CPA who specializes in dental clients can be expected to extract considerably more information from your personal and professional circumstances, for crafting a more tightly tailored plan. We may draw on detailed management financial statements, practice reports showing production (by provider), collections, adjustments (by category), accounts receivable aging, procedure code analysis reports, new patient reports … you get the idea.
How Are You Doing … Compared to What?
In addition, having the ability to benchmark your practice against appropriate, detailed industry standard data is an invaluable tool. It offers you the vital context needed to assess, not only how you’re doing, but how you’re doing in the context of a valid measuring stick.
A Finer Viewpoint
Think of it this way: Most generalist CPAs and financial planners look at the equivalent of a set of bite-wing radiographs. Dental-specific CPAs and wealth managers analyze a Cone Beam CT Scan to diagnose problem areas in a practice and make recommendations that are more probing and farther-reaching than any simple view could afford.
We might be able to resolve the details exposed by a thorough analysis with basics, such as:
- Focusing on overhead
- Establishing production goals
- More efficiently managing the calendar days worked
Or we might refer you to a specialist for particular concerns, such as consultants skilled in areas such as:
- Personnel matters
- Employee morale
- Basic business systems
- Effective communications
- Treatment planning
- Assessing fee schedules
- Improving department-specific profits
Putting the Pieces in Place
Each of these highly specialized experts can represent critical, gap-filling pieces in your practice management puzzle, especially when we further integrate the results into your overall wealth management plan.
Are you beginning to see what I mean? In a future Wealth Extractions post, I’ll answer a question that may still linger for you: “Why do I need wealth management to begin with?”
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