A year ago I had a fifty year old doctor with a huge lucrative general practice go out on total disability from a severe shoulder injury. Three years ago, another client in a multi-doctor specialty practice, suffered a nervous breakdown and was forced to retire prematurely. And just a month ago, another relatively young dentist had to sell his practice because of early onset Parkinson-like tremors.

In each of these unfortunate situations, the interactions and communications between the doctor and the disability insurance companies has been a nightmare. The fine print in the policies and the “definition” of disability becomes contentious. In each of these three cases, we have had to resort to hiring expert legal advice to force payment from the companies. It appears the insurance company is very happy to take your premium dollars year after year, but then do everything possible to embarrass you and discredit and contest a legitimate claim. You in fact become the enemy.

The statistics say that dentists at age 35 face almost a one in four chance of suffering a disability lasting 90 days or longer at some point in their career. It is imperative to seek expert advice when you purchase your disability coverage. These real life situations have taught me the value of the necessity to coordinate the benefits from multiple policies, and perhaps consider legal advice from disability experts other than the insurance agents who sell you the policies. And don’t overlook the tax advantages of purchasing the policies personally rather than through your dental company so that the disability dollars are tax free.

For the past fourteen years, I have worked full time as a management consultant to the dental profession. During that time period, I have interacted with over 500 different dental practices. In all honesty – and it was something I never expected – I have been amazed at how many of these dentists- in my opinion – receive inadequate or the bare minimum of accounting supervision and advice. Here for starters is what you should expect from your accountant.

1. Quarterly income and expense statements (P & L) that are easily understood and serve as a legitimate business tool to help manage the practice. Observing “what happened” at the end of twelve months is no way to run a business. Controlling or at least understanding your overhead is always important, but it is especially critical in the current difficult business environment.

2. Aggressive treatment for deductions with a solid understanding of the nuances and miracles of depreciation. You want creativity.

3. Tax planning and advice. I constantly hear gripes from doctors about being “hit” with huge tax payments come April 15th. If the only service you are receiving from your accountant is the preparation of a tax return, you are not being well served.

4. Coordination with pension planning, estate planning and wealth management. Everyone has to be on the same page because the rules are constantly changing.

5. Lots of experience with other dental practices and knowledge of appropriate overhead and profit percentages.

Working with a bright and knowledgeable accounting professional is one of the most important business decisions you can make. Be sure you have one on your team!