4 Common Financial Mistakes Made by Orthodontists by Judson Crawford

Opportunities to get the most out of your business, even after the pandemic

by Judson Crawford

• Orthodontists may typically only attribute business travel expenses to continued education events, or when the expense has the potential for other travel as well, like an annual corporate meeting or event. Also consider writing off some auto expenses. Although you cannot write off your daily commute to the office, consider other milage like visits to referring doctors, study club meetings or drives to the bank or to pick up supplies. If there is a business reason, you should be running travel and auto through the business.


• Meals and entertainment is another area that has potential for savings. For 2021 and 2022, business meals are 100% deductible, instead of only 50%. Entertainment expenses, like a sporting event or tickets to a show, are still nondeductible. Make sure you keep all itemized receipts for any business meals.


• If you have children, consider employing and paying them out of the practice. During the pandemic, I had clients whose children were working in the office and helping take patient temperatures or shuttling patients out of cars. Children can also help around the office by marketing within their sports or school club or even modeling. Paying children moves money from your high tax bracket to the child’s bracket.

Disclaimer:
Cain Watters & Associates is a registered investment advisor. Cain Watters conducts business only in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Request Form ADV Part 2A for a complete description of Cain Watters investment advisory services. Diversification does not ensure a profit and may not protect against loss in declining markets. Past performance is not an indicator of future results.

Judson Crawford is a certified public accountant and investment advisor representative. Crawford is a partner and financial planner at Cain Watters & Associates, where he focuses on the orthodontics specialty and spearheads a team of financial planners with whom he shares his insights and subject matter expertise. In addition to his role as a CPA, he is the executive board member responsible for CWA’s marketing and communications department and the co-host of the Accumulating Wealth Podcast, a production focused on guiding dental practice owners along their journey to reach their personal and practice goals.