News & Tech Tips

Planning for the future: 5 business succession options and their tax implications

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different succession strategies is key. Here are five options to consider, along with some of the tax implications.

 

1. Transfer directly to family with a sale or gifts

One of the most common approaches to business succession is transferring ownership to a family member (or members). This can be done by gifting interests, selling interests or a combination. Parents often pass the business to children, but family succession plans can also involve siblings or other relatives.

 

Tax implications:

Gift tax considerations. You may trigger the federal gift tax if you gift the business (or part of it) to a family member or if you sell it to him or her for less than its fair market value. The annual gift tax exclusion (currently $19,000 per recipient) can help mitigate or avoid immediate gift tax in small, incremental transfers. Plus, every individual has a lifetime gift tax exemption. So depending on the value of the business and your use of the exemption, you might not owe gift taxes on the transfer. Keep in mind that when gifting partial interests in a closely held business, discounts for lack of marketability or control may be appropriate and help reduce gift taxes.

Estate planning. If the owner dies before transferring the business, there may be estate tax implications. Proper planning can help minimize estate tax liabilities through trusts or other estate planning tools.

Capital gains tax. If you sell the business to family members, you could owe capital gains tax. (See “5. Sell to an outside buyer” for more information.)

 

2. Transfer ownership through a trust

Suppose you want to keep long-term control of the business within your family. In that case, you might place ownership interests in a trust (such as a grantor-retained annuity trust or another specialized vehicle).

Tax implications:

Estate and gift tax mitigation. Properly structured trusts can help transfer assets to the next generation with minimized gift and estate tax exposure. Trust-based strategies can be particularly effective for business owners with significant assets.

Complex legal framework. Because trusts involve legal documents and strict rules, working with us and an attorney is crucial to ensure compliance and optimize tax benefits.

 

3. Engage in an employee or management buyout

Another option is to sell to a group of key employees or current managers. This path often ensures business continuity because the new owners already understand the business and its culture.

Tax implications:

Financing arrangements. In many cases, employees or managers may not have the funds to buy the business outright. Often, the seller finances part of the transaction. While this can provide ongoing income for the departing owner, interest on installment payments has tax consequences for both parties.

Deferred payments. Spreading payments over time can soften your overall tax burden by distributing capital gains across multiple years, which might help you avoid being subject to top tax rates or the net investment income tax. But each payment received is still taxed.

 

4. Establish an Employee Stock Ownership Plan (ESOP)

An ESOP is a qualified retirement plan created primarily to own your company’s stock, and thus it allows employees to own shares in the business. It may be an appealing choice for owners interested in rewarding and retaining staff. However, administering an ESOP involves complex rules.

Tax implications:

Owner benefits. Selling to an ESOP can offer potential tax deferrals, especially if the company is structured as a C corporation and the transaction meets specific requirements.

Corporate deductions. Contributions to an ESOP are usually tax-deductible, which can reduce the company’s taxable income.

 

5. Sell to an outside buyer

Sometimes, the best fit is outside the family or current employees or management team. You might decide to sell to an external buyer — for example, a competitor or private equity group. If you can find the right buyer, you may even be able to sell the business at a premium.

If your business is structured as a corporation, you may sell the business’s assets or the stock. Sellers generally prefer stock (or ownership interest) sales because they minimize the tax bill from a sale.

Tax implications:

Capital gains tax. Business owners typically pay capital gains tax on the difference between their original investment in the business (their “basis”) and the sale price. The capital gains rate depends in part on how long you’ve held the business. Usually, if you’ve owned it for more than one year, you’re taxed at the applicable long-term capital gains rate.

Allocation of purchase price. If you sell the assets, you and the buyer must decide how to allocate the purchase price among assets (including equipment and intellectual property). This allocation affects tax liabilities for both parties.

 

Focus on your unique situation

Business succession planning isn’t a one-size-fits-all process. Each option has unique benefits and pitfalls, especially regarding taxes. The best approach for you depends on factors including your retirement timeline, personal financial goals and family or employee involvement. Consult with us to ensure you choose a path that preserves your financial well-being and protects the business. We can advise on tax implications and work with you and your attorney to structure the deal advantageously. After all, a clear succession plan can safeguard the company you worked hard to build.

Oral Health 2025: Top Trends and Expert Advice for a Healthier Smile

As we step further into 2025, the world of oral health is evolving at an exciting pace. Groundbreaking technologies and innovative products are making their way from the lab to our daily routines, yet the timeless fundamentals of oral care remain as essential as ever. In this article, we explore the top trends shaping oral health this year and share expert advice to help you maintain a radiant, healthy smile.

Top Oral Health Trends for 2025

1. Smart Oral Hygiene Devices

Technology is revolutionizing the way we care for our teeth. Today’s smart toothbrushes and other oral care devices are equipped with advanced features that elevate your daily routine:

  • Monitor Your Brushing Technique:
    Equipped with sensors and artificial intelligence, these devices offer real-time feedback to help you improve your brushing technique and ensure you clean every surface of your teeth effectively.
  • Track Oral Hygiene Habits:
    Linked to dedicated apps, smart oral devices track your brushing frequency, flossing, and even dental checkup schedules, sending you timely reminders so you never miss a beat in your oral care routine.
  • Customize Routines:
    By analyzing your oral care data, these smart devices provide personalized advice. Whether it’s recommending a slight change in your brushing technique or suggesting when to replace your toothbrush head, the goal is to optimize your oral hygiene for the best possible outcomes.

 

2. Eco-Friendly and Natural Oral Care Products

Sustainability has become a key factor in consumer choices, and oral care is no exception. This year, an increasing number of consumers are opting for products that are both effective and environmentally responsible:

 

  • Natural Ingredients:
    There’s a growing shift toward herbal or naturally derived toothpastes and mouthwashes that are free from harsh chemicals. These products aim to support your oral health while being gentler on your body.
  • Biodegradable Products:
    Eco-friendly toothbrushes, often crafted from bamboo, and sustainable packaging solutions are helping reduce environmental impact. By choosing these products, you can contribute to a greener planet with every brush.
  • Green Certifications:
    Look for products that not only meet high oral care standards but also carry green certifications and the ADA Seal of Approval. These certifications indicate a commitment to sustainability and ethical production practices, giving you peace of mind with every use.

 

Leading Advice for Taking Care of Your Oral Health

While 2025 brings exciting new options and innovative products, the core principles of oral health remain vital. Here are the top tips from dental experts to keep your smile healthy and bright:

  • Brush Twice Daily:
    Use a fluoride toothpaste and spend at least two minutes each time. Make sure you reach all surfaces of your teeth to effectively remove plaque and prevent decay.
  • Floss Daily:
    Flossing removes plaque and food particles from between your teeth—areas where your toothbrush can’t reach—helping to prevent gum disease and cavities.
  • Adopt a Balanced Diet:
    Limit sugary and acidic foods and beverages. Instead, incorporate a variety of fruits, vegetables, and dairy products into your diet to strengthen your teeth and maintain overall oral health.
  • Stay Hydrated:
    Drinking water not only helps wash away food particles but also keeps your mouth moist, reducing the risk of decay.
  • Use Mouthwash:
    Complement your brushing and flossing routine with an antimicrobial or fluoride mouthwash. This can help reduce plaque, freshen breath, and provide additional protection against oral diseases.
  • Regular Dental Checkups:
    Visit your dentist at least twice a year for professional cleanings and routine exams. Early detection of potential issues can prevent more serious problems down the road.
  • Embrace Smart Tools:
    Consider integrating smart toothbrushes or oral care apps into your routine. These tools offer personalized feedback and help ensure that you’re following the best practices for your oral hygiene.
  • Stay Informed About Innovations:
    As new products and therapies emerge, stay updated by reading trusted health sources and consulting your dentist about what might benefit your oral health. Knowledge is power when it comes to making informed decisions about your care.

Conclusion

Oral health in 2025 is a dynamic blend of traditional care and modern innovation. While smart oral hygiene devices and eco-friendly products are paving the way for a smarter, greener approach to daily routines, the fundamentals—brushing, flossing, and regular dental checkups—remain the cornerstone of a healthy smile. By embracing these emerging trends and following expert advice, you can ensure that your oral health keeps pace with the future, resulting in a bright, confident smile for years to come.

Celebrate the advancements in oral health this year, and take proactive steps today to secure your smile tomorrow!

Harness the power of QuickBooks for your business

Accurate financial records help business owners manage cash flow, tax obligations, and strategic planning. QuickBooks® is one of the most widely used bookkeeping software solutions for small and midsize businesses, offering a comprehensive suite of tools designed to simplify financial management and support business growth.

Why QuickBooks stands out

QuickBooks offers several advantages over other accounting software solutions. It’s affordable and adaptable to the needs of businesses across various industries. QuickBooks offers tailored solutions whether you’re a professional services provider, contractor, manufacturer, nonprofit, retailer, wholesaler, or distributor.

QuickBooks is also user friendly and robust. It enables businesses to track income and expenses, create professional invoices and generate insightful financial reports. With its project and job costing capabilities, businesses can estimate and monitor expenses associated with specific jobs, ensuring that profitability remains on track.

For businesses dealing with payroll and tax obligations, QuickBooks simplifies the process by handling payroll, sales tax, and income tax calculations. It also includes inventory and fixed asset management, helping businesses maintain accurate records and streamline operations. Additionally, QuickBooks empowers business owners with data-driven decision-making through financial reporting and forecasting tools. By analyzing past performance and predicting future trends, companies can create more accurate budgets and adjust their strategies as needed.

Another key feature is QuickBooks’ seamless integration with other business platforms, such as e-commerce sites and payroll management platforms. QuickBooks connects with these systems to ensure smooth data synchronization. This connectivity reduces the risk of errors and minimizes the time spent on manual data entry, freeing up valuable resources for more critical business functions.

Collaboration made easy 

Beyond its bookkeeping capabilities, QuickBooks serves as a valuable collaborative tool for business owners and financial professionals. The software houses real-time financial data, which your external accounting team can securely access to review your company’s latest records without constant back-and-forth communication. This real-time access enhances financial accuracy and allows accountants to provide timely advice.

By collaborating through QuickBooks, you’ll gain deeper financial insights, optimize tax planning strategies, and ensure compliance with federal and state regulations. Your accountant can also review financial reports to identify potential discrepancies, errors, and areas of improvement. This helps you to focus on day-to-day operations while your accounting team manages the complexities of reporting and compliance.

Is QuickBooks right for your bookkeeping needs?

Whether you’re launching a startup or managing an established enterprise, choosing the right bookkeeping software solution is crucial for maintaining efficiency and profitability. There are many off-the-shelf options available today. Our team has extensive experience guiding business owners and managers through the selection process. We can help you choose the right solution for your situation and optimize the software’s features to maximize its benefits. Contact us for more information.

How Columbus Dentists Can Prepare for Economic Uncertainty

In times of economic uncertainty, dental practices, face unique challenges that require strategic planning and proactive measures. Implementing robust financial strategies can help practices not only survive but thrive during such periods. Below are key considerations and actionable steps to fortify your dental practice against economic downturns.

1. Build and Maintain a Cash Reserve

Establishing a cash reserve is crucial for navigating unforeseen financial challenges. A well-maintained reserve ensures that your practice can cover expenses during periods of reduced revenue. The ideal amount varies depending on factors like payroll, supply costs, and insurance payment cycles, but saving two to three months of expenses is a great starting goal. Regularly assess your practice’s financial needs to determine an appropriate reserve amount that reflects changes in your commitments and the broader economy.

2. Optimize Cash Flow Management

Effective cash flow management is vital during economic downturns. Consider implementing the following strategies:

  • Flexible Payment Plans: Provide third-party financing options to accommodate patients facing financial constraints, ensuring continued access to dental care while maintaining revenue streams. Consider offering more than one third-party financing option to capture those individuals with less-than-ideal credit scores.
  • Accounts Receivable Management: Evaluate your accounts receivable at least once per month and investigate outstanding insurance claims and delinquent patient accounts. Make collections calls and follow up with insurers who ask for additional information to support the claim. Ask patients to contact slow payors on their own behalf. Insurers are more receptive when patients make inquiries.

3. Evaluate and Control Expenses

Regularly reviewing and adjusting your practice’s expenses can lead to significant savings. Identify non-essential costs that can be reduced or eliminated without compromising patient care. This proactive approach helps maintain financial stability during uncertain times. For the most impact, look for savings in expense categories that are in excess of 2%-3% over the standard expense benchmarks. Also, knee-jerk reactions should be avoided during employee raises. Set a yearly employee evaluation date to consider raises, allowing you to evaluate whether the practice’s budget can sustain higher rates of pay.

4. Invest in Practice Growth

Strategic investments in your practice can yield long-term benefits, even during economic downturns. Consider upgrading technology, expanding services, or enhancing patient experience to attract and retain clientele. Before choosing this option, calculate how quickly you will reap a return on your investment and how impactful the purchase is on your cash reserves.

5. Strengthen Patient Relationships

Building strong relationships with your patients fosters loyalty and encourages repeat business. Hone your customer service skills to improve patient stickiness. Building strong relationships is free, and engaged and satisfied patients are more likely to continue seeking care, providing a stable revenue base for your practice.

6. Diversify Patient Base and Services

Expanding your patient base and diversifying services can mitigate financial risks associated with economic downturns. Consider offering in-house insurance programs to help uninsured patients complete treatment or targeting different demographics to reduce reliance on a single revenue source. This diversification can provide a buffer against economic fluctuations.

7. Engage in Community Outreach

Participating in community events and offering educational seminars can increase your practice’s visibility and attract new patients. Engaging with the local community not only enhances your reputation but also demonstrates commitment to public health, fostering trust and loyalty among residents.

8. Monitor Economic Indicators

Stay informed about local and national economic trends that could impact your practice. Regularly reviewing economic indicators allows you to anticipate challenges and adjust strategies accordingly, ensuring resilience in the face of economic uncertainty. A study reported in the Journal of the American Dental Association found that personal consumption expenditures and gross domestic product were valid indicators of short-term dental market fluctuations (Guay & Wall, 2015). The U.S. Department of Commerce publishes these economic indicators. Click here to view the current reports.

9. Leverage Technology for Increased Efficiency

In times of economic uncertainty, finding ways to increase efficiency can make a significant difference in your practice’s bottom line. Leveraging technology can streamline operations, reduce costs, and improve patient care. Consider implementing:

  • Automated Billing and Payment Systems: These tools reduce the time and effort spent on administrative tasks like invoicing and follow-ups. They can also help ensure faster payments, improving cash flow. Include an online bill payment option on your website so patients can pay you on the go. Even well-meaning patients can delay payment if they have to take time to write paper checks and buy stamps.
  • Patient Scheduling Software: Automating appointment scheduling and reminders can help optimize your practice’s daily operations and reduce no-shows, maximizing your time and revenue.
  • Fully automate your insurance processing cycle: Make paper a thing of the past. Manual data entry is time-consuming and prone to errors. If your practice software allows direct upload from the insurance clearinghouse to your software, utilize this feature to its fullest. It provides error-free processing and eliminates wasted time. Use the time savings to improve accounts receivable oversight and patient engagement.

Investing in the right technology helps reduce operational costs while improving the overall patient experience.

10. Strengthen Your Team with Cross-Training

Cross-training your dental team is another way to make your practice more resilient. By training staff to handle a variety of roles, you can improve efficiency and ensure smooth operations, even during periods of staffing shortages or economic strain. For example:

  • Front Desk Staff: Teach them more about the financial aspects of running a practice, such as billing or insurance verification.
  • Dental Assistants: Cross-train them in more administrative or scheduling tasks to ensure flexibility in day-to-day operations.

A well-rounded team ensures that your practice can maintain high standards even when faced with external challenges.

11. Plan for Future Growth with Financial Forecasting

Creating a financial forecast helps you anticipate challenges before they arise. By mapping out your practice’s financial future, you can better prepare for periods of economic uncertainty. A good financial forecast will take into account factors like:

  • Expected revenue growth or decline.
  • Costs associated with new equipment or services.
  • Any anticipated changes in patient volume or insurance reimbursements.

Regularly updating your forecast will help you make informed decisions and adjust your practice’s operations accordingly.

12. Maximize Patient Retention with Loyalty Programs

Maintaining a steady patient base is crucial during tough times. Consider implementing a patient loyalty program that rewards patients for repeat visits, referrals, or other engagements with your practice. A loyalty program can include:

  • Discounts for returning patients or families.
  • Referral incentives for patients who refer new clients.
  • Complimentary consultations or services after a certain number of visits.

Patient loyalty programs help ensure steady cash flow and keep your practice top-of-mind among current and prospective patients.

13. Adjust Your Marketing Strategies for Economic Conditions

During uncertain economic times, adjusting your marketing efforts is important to ensure you’re still reaching potential patients without overspending. Focus on cost-effective strategies that offer a strong ROI, such as:

  • Local SEO Optimization: Make sure your practice appears in local searches when people search for dental services in Columbus. This can be achieved through keyword optimization, accurate Google My Business listings, and local partnerships.
  • Social Media Engagement: Use platforms like Facebook and Instagram to engage with your local community. Share educational content and promotions to maintain interest in your practice.

Focusing your marketing efforts locally and ensuring you’re visible in Columbus can help you maintain a steady stream of new patients.

14. Focus on Your Unique Value Proposition (UVP)

In an uncertain economy, it’s more important than ever to remind your patients why they should choose your practice over others. Whether it’s your unique services, exceptional customer care, or your on-staff dentist offering advisory services like Laurie, make sure your UVP is front and center in all your communications.

Conclusion

Navigating economic uncertainty requires dental practices to remain agile, proactive, and resourceful. By implementing strategies like building cash reserves, optimizing cash flow, diversifying services, embracing technology, and focusing on patient relationships, your practice can not only weather economic downturns but emerge stronger and more resilient.

Incorporating these strategies into your daily operations will position your dental practice for success in any economic climate. As a CPA firm offering dental accounting services in Columbus, we are here to provide expert financial guidance and support every step of the way. From cash flow management to practice transitions, let us help you secure your practice’s financial future, no matter the economic challenges that lie ahead.

The 2024 gift tax return deadline is coming up soon

If you made significant gifts to your children, grandchildren, or other heirs last year, it’s important to determine whether you’re required to file a 2024 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway.

Requirements to file

The annual gift tax exclusion was $18,000 in 2024 (increased to $19,000 in 2025). Generally, you must file a gift tax return for 2024 if, during the tax year, you made gifts:

  • That exceeded the $18,000-per-recipient gift tax annual exclusion for 2024 (other than to your U.S. citizen spouse),
  • That you wish to split with your spouse to take advantage of your combined $36,000 annual exclusion for 2024,
  • That exceeded the $185,000 annual exclusion in 2024 for gifts to a noncitizen spouse,
  • To a Section 529 college savings plan and wish to accelerate up to five years’ worth of annual exclusions ($90,000) into 2024,
  • Of future interests — such as remainder interests in a trust — regardless of the amounts, or
  • Of jointly held or community property.

Important: You’ll owe gift tax only if an exclusion doesn’t apply and you’ve used up your lifetime gift and estate tax exemption ($13.61 million in 2024). As you can see, some transfers require a return even if you don’t owe tax.

Filing if it’s not required

No gift tax return is required if your gifts for 2024 consisted solely of tax-free gifts because they qualify as:

  • Annual exclusion gifts,
  • Present interest gifts to a U.S. citizen spouse,
  • Educational or medical expenses paid directly to a school or health care provider, or
  • Political or charitable contributions.

But you should consider filing a gift tax return (even if not required) if you transferred hard-to-value property, such as artwork or interests in a family-owned business. Adequate disclosure of the transfer in a return triggers the statute of limitations, generally preventing the IRS from challenging your valuation more than three years after you file.

The deadline is April 15

The gift tax return deadline is the same as the income tax filing deadline. For 2024 returns, it’s April 15, 2025. If you file for an extension, it’s October 15, 2025. But keep in mind that if you owe gift tax, the payment deadline is April 15, regardless of whether you file for an extension. Contact us if you’re unsure whether you must (or should) file a 2024 gift tax return.