Monthly Archives: July 2016
To continue providing the best financial advice for dentists, the Dental Accounting Association has scheduled a series of webinars in July and August 2016 on the following topics. Each topic will be instructed by an industry expert.
Who’s Best at Dental Malpractice Insurance and Disability Coverage
Top 10 Legal Minefields to Avoid for Dentists
Dental Benchmarking and KPI’s – Using Data to Highlight Improvement Opportunities
Dental Practice Management
Dental Lending Insights
Solutions to Lower Accounts Receivable for Dentists
Success Guide for New Dental Residents and Dental Students
Exit Planning for Dentists
Protecting Dental Practices from Creditors
Real Estate Strategies for Dentists
Equipment Purchasing Options for Dentists
If your accounting firm has over twenty (20) dental clients and are serious about your dental expertise, visit the Dental Accounting Association website. Our association is comprised of CPA Firms who are genuinely focused on dentists of all types and want to raise your expertise.
- Lack the Time – Most accountants get sucked into the operational side (back end) of their practice by staff and demanding clients. We all know that the squeaky wheel gets greased. As a result, accountants typically lack the time to aggressively market and generate enough leads.
- Skills – Let’s face it, accountants are technically proficient but not marketing savvy. The road to becoming proficient at accounting and tax has nothing to do with lead generation, reputation management, and branding.
- Desire – And worst, most accountants simply don’t have the desire to proactively market their own practice. They enjoy operating in a consultative manner but hate marketing.
Why Is Outsourced Marketing growing within the accounting industry?
For most accountants, the market value of their accounting practice is the most important component of their retirement plan. That’s right, the value of their accounting practice on the open market is the linchpin to how prosperous their retirement years will be.
Here are some of the other reasons why more accounting firms are outsourcing their marketing:
- Hiring marketing people is expensive. A competent marketer commands a six figure compensation package which is not feasible for most accounting firms.
- Partnering with marketing experts yields better results because they have much more experience testing which methodologies work, and which are worthless. This eliminates the need to throw spaghetti up against the wall and test everything under the sun. Savvy accountants would rather use a proven system to grow quicker.
- By partnering with marketing gurus, my practice will become easier to sell, more profitable and worth a higher multiple. It’s not about doing more of the same thing, it’s about improving our profit margins, hourly realization rates and obtaining a better balanced lifestyle.
- Hiring a marketing firm provides me with access to several different experts to better avoid problems and be more efficient with my time.
Why Do Accounting Firms Stick with Outsourced Marketing?
The business model for outsourced marketing within the accounting industry works. And because it works, accountants are now using outsourced marketing for 5-15 years to develop practices that are worth more on the open market, transition the practice from a job into a business, and make more money.
Said another way, the average accounting practice is typically worth 1.2 – 1.3 times gross revenues. And the cost to acquire $100,000 in revenues is approximately 0.5 – 0.6 times gross revenues, sometimes lower. Essentially, outsourced marketing enables savvy accountants to acquire new business at a 50-70% discount to the market value. This gap between the cost to acquire and sell has motivated many accountants to continue enhance their retirement nest egg for 5-15 years.
And if the practice operates at higher profit margins, then the multiple for this practice can be 1.3 – 1.7 times gross revenues because the profitability is higher. That’s right, a practice that operates at profit margins of 50-70% will command a higher multiple than a 30% profit margin accounting practice. The math is simple.
Build Your Firm’s Outsourced Marketing Program
Build Your Firm is the leader within the accounting industry for outsourced marketing and lead generation because our system is more effective, sustainable, and makes your accounting practice worth more on the open market. And, it works with a wider array of accounting practices.
- Training – At the onset, BYF’s program provides training on marketing, practice management and selling effectiveness.
- Coaching – Throughout the program, BYF’s is your coach and partner through the myriad of business challenges.
- Tangible Results – Our program is bottom-line focused. If the results are attained, we both will want to continue for 5-15 years. If the results are below expectations, we both will want to end the relationship. This win/win approach is why over 75% of firms continue beyond the initial program duration.
And like any professional, our wisdom and expertise gets better over time.
Within the United States, there are approximately 210,000 practicing dentists and 174,000 dental practices. Each year, the 58 dental schools graduate another 5,000 new dentists into the marketplace. To better service the needs of dentists, here are two CPA Firms that are raising the bar to attract far more than their fair share by providing a comprehensive dental marketing campaign.
To create a feeder system of new dentists, savvy CPA Firms will often design a program to help out new dentists.
With the cost of dental schools these days, the typical graduate from a dental school has over $180,000 in student loan debt upon graduation. As a result, they are often not in a position to develop a practice immediately upon graduation. However, they are actively seeking to improve their financial position so that they seeking to form the right professional relationships.
Join a Leading Association for Dental Accounting
In the dental industry, dentists belong to study clubs to share practice information regularly. To elevate the quality of dental accounting and tax services, these two accountants have become members of the Dental Accounting Association, a leading network of CPA Accountants working collaboratively to share tax planning strategies, dental benchmarking and better service dentists.
Incorporating Technology into Online Marketing
Leading CPA firms are going beyond cloud computing and have incorporated video into their dental niche websites, further demonstrating their commitment to provide the best tax and accounting advice to dentists.
- CPA Accountants for Dentists – Denver – Colorado Springs – Boulder – Gheen & Company operates a tech savvy accounting practice for dentists that want their CPA Firm to be savvy too. This firm is paperless, operates in the cloud, proud member of Dental Accounting Association and active with the Denver Dental Society.
- CPA Accountants for Dentists – Texas – Mike Manoloff CPA operates a tech savvy accounting practice for dentists throughout Texas, Oklahoma and New Mexico. In addition to an active new dental program, this firm has an active outreach program to dentists.
Build Your Firm is pleased to announce that the Practice Management Program for Accountants has just been released.
This education program is available in a self study format and provides a step-by-step system for maximizing the “value” of your accounting practice, improving your work flow, and incorporating technology into your practice for peak efficiency. Learn how to:
- Operate at profit margins of 50-70%, not 25-40%
- Manage small business clients with less stress
- Develop a practice that is worth more (higher than 1.3 times gross)
- Develop a practice that is easier to sell
This new program now includes over 30 sections to rejuvenate your accounting practice. This comprehensive program was designed by a practicing accountant, Allan Ratafia.