cancel
Showing results for 
Search instead for 
Did you mean: 
konegovi81
Level 2

Which QuickBooks Product to Use for a Dentistry Practice

Hello, I have a PLLC company that is a S Corp. What is the best QB product to use so that I can manage all my financials. Thanks

15 Comments 15
Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

Hey @konegovi81

 

That is a great question, but it really depends on what industry you are in. Additionally, how much do you want to manage - just financial records or do you need to run payroll, keep track of inventory, etc.

konegovi81
Level 2

Which QuickBooks Product to Use for a Dentistry Practice

@Anonymous Thanks much for the suggestion. I'm interested to manage the financial products only so that I can generate the profit loss statement, track my bills paid. I dont need the payroll. I'm in the dentistry business.

 

Thanks

Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

@konegovi81

 

Thank you for clarification, you're very welcome. Strangely enough, I actually just had a conversation with a colleague who is helping their dentist friend set up their business. 

 

If you only need to track basic P&L and pay bills (and send invoices), then QuickBooks Online is a good way to go. The interface is simple and streamlined. The Essentials version should have all the functionality you need - here is a comparison list so you can see which will work best for you.

 

To play my own devil's advocate, what about future-proofing? Do you plan to grow and foresee needing more features in, let's say, 5 years? QuickBooks Desktop is a very robust system but feature-wise, it's overkill for your current needs. 

Now I am curious - my colleague mentioned that his friend said they never got any sort of business training in dentistry school. Was that the case for you?

konegovi81
Level 2

Which QuickBooks Product to Use for a Dentistry Practice

Thank you so much for the kind assistance. If I want to add payroll to my requirements, what would be the right product to use?

They did not teach business aspects in our dental school. A couple of dental schools in the country do have courses, and an optional MBA degree for the students. My school did not have that option.

Rustler
Level 15

Which QuickBooks Product to Use for a Dentistry Practice


@konegovi81wrote:

Thanks much for the suggestion. I'm interested to manage the financial products only so that I can generate the profit loss statement, track my bills paid. I dont need the payroll. I'm in the dentistry business.


If your company is taxed as an s-corporation, regardless of the PLLC state filing, you are required to be on payroll if you work in the company (sole shareholder or not).

 

You need to get with a tax accountant, as you said the school did not cover business stuff like this.

Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

@konegovi81, that seems like an important missing piece of the training regiment. Even though new dentists are likely expected to start with an existing practice or institution to learn the ropes before striking out on their own, so many eventually go into private practice for themselves! 

 

Have you picked up any good dentist-business tips along the way? The gentlemen I spoke of earlier was part of a professional association in his area which provided a lot of good business-basics info.  

 

QuickBooks has a payroll option, but as @Rustler said, you should connect with a Tax Accountant who can assess your specific situation. 

mcwagner
Level 5

Which QuickBooks Product to Use for a Dentistry Practice

There is no requirement for a shareholder of an S-corp to be on payroll.

Mark Wagner CPA

Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

Thanks for the information, Mark (@mcwagner). Does "shareholder" apply to @konegovi81 as the sole proprietor of their dental practice? Or are you referring to anyone who has invested in its ownership? 

 

Just want to clarify the technical terms! 

Rustler
Level 15

Which QuickBooks Product to Use for a Dentistry Practice


@mcwagnerwrote:

There is no requirement for a shareholder of an S-corp to be on payroll.

Mark Wagner CPA


These and other links seem to support what I said, do you have something that says otherwise?

 

IRS,
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-a...

 

TURBOTAX
https://ttlc.intuit.com/questions/3366869-i-own-100-of-my-s-corp-i-do-not-take-a-wage-but-have-taken...

 

Payroll
http://www.accupay.com/_paydays/2012/May/S%20Corp%20Pays%20Zero%20Salary%20to%20Owner_050312.pdf

daindallas
Level 1

Which QuickBooks Product to Use for a Dentistry Practice

It's a shame someone is ranked as a senior advisor on this site and per his signature is a CPA would give the incorrect information about the Payroll situation for a S. Corp.  It is very clear per all the links that Rustler provided that unless you want an unwanted visit with the IRS, you need to pay yourself a salary.  Spend time with an accountant to verify, but most importantly spend time to educate yourself before depending on the advise of anyone.  As this is prime situation where even a licensed CPA gets it wrong.  The IRS has collection millions maybe billions of $$ in non reported payroll tax, and then add massive penalties and interest to those amounts.  Best advise, Educated yourself, find a knowlageble accountant, ask questions you already know the answer as a test of their knowledge, and pay yourself a reasonable salary.  It is a lot cheaper to pay the tax up front than pay penalties and interest after an audit.  Also, if ever in doubt, the IRS has all the information available on any tax subject at their website at IRS.gov.  And you can call them to get specific answers for your question.

Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

@daindallas, good advice, let's let @mcwagner qualify his statements. 

 

And more importantly, let's give @konegovi81 more resources to help them establish their dental practice. Any recommendations, @daindallas?

mcwagner
Level 5

Which QuickBooks Product to Use for a Dentistry Practice

Shareholder refers to an owner of a S-corp, C-corp, or an LLC Member  where the LLC is being taxed as an S-corp or C-corp.  Shareholders own shares of stock.

Since there is no tax code for LLC, the IRS treats an LLC taxed as an S- or C-corp as if it IS an S- or C-corp, and the ownership is referred to as a shareholder accordingly.

 

Mark Wagner CPA

mcwagner
Level 5

Which QuickBooks Product to Use for a Dentistry Practice

That's not what this link says.  Read the last paragraph of the IRS link again.

 

IRS considers compensation paid for services to the company to be wages.  Wages means that social security and medicare tax applies.

Therefore, if you are working at the business, then whatever you are paid will be considered wages. 

If you just own the business, and take a distribution, but do NOT work at the business, then you have no compensation for services to the company and do NOT have to be on payroll.  Your income from the company is subject to income tax, but NOT social security and medicare.

Further, if you own the company AND work at the company, then as long as you pay yourself a reasonable salary (reasonable meaning what you would pay someone else with sililar education and experience to do your job) then any busines income over this amount can be safely treated as a distribution and not wages.

I have clients that own multi-million dollar S-corps.  They are basically working as a sales manager overseeing daily operations of  15-50 employees, for which they receive a $100k salary.  Everything above this is non-wage distributions. 

 

mcwagner
Level 5

Which QuickBooks Product to Use for a Dentistry Practice

@daindallas

 

And your qualifications are what, exactly?

Anonymous
Not applicable

Which QuickBooks Product to Use for a Dentistry Practice

Hello everyone,

 

I'm really happy to see conversations getting into important, technical questions around payroll. These are extremely relevant to sole proprietors like @konegovi81. However, I'd like to remind everyone to keep the conversation professional and civil. 

 

Please ensure the following posts in this thread pertain to the OP's original question(s) regarding their dentistry practice and convey information simply and directly to @konegovi81. Thanks everyone!

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up