800.676.9076

The competition in the field of optometry has grown over the years. With an array of choices available, patients are no longer bound to one practice and can easily switch if their expectations aren't met.

Therefore, enhancing the patient experience is vital not just for retaining your existing patients but also for attracting new ones. Let’s explore key strategies that can help you elevate the patient experience in your optometry practice.

Understanding Patient Needs and Expectations:

Every patient walking through your door comes with their own set of needs and expectations. Understanding these can guide you in tailoring your services, thereby enhancing patient satisfaction and loyalty. One way to understand patient needs is through active listening. Encourage your patients to voice their concerns and needs. Ask questions to understand their history, lifestyle, and vision needs better. Are they working extensively on computers and experiencing digital eye strain? Are they athletes looking for sports vision solutions? Understanding these needs allows you to personalize their care plan effectively.

Leveraging Technology for Efficient Service:

In the digital age, patients value efficiency and convenience as much as they value quality care. Leverage technology to streamline your processes and enhance patient experience. Implement online appointment scheduling, electronic medical records, and automated reminders for appointments or eye tests due. These not only simplify processes for your staff but also provide your patients with a seamless experience.

Emphasizing Continuous Improvement through Patient Feedback:

Your practice should be a continuous loop of feedback and improvement. Make it a habit to solicit patient feedback - this could be through regular surveys, suggestion boxes, or simply asking patients at the end of their visit. Take this feedback seriously and act upon it. If multiple patients mention long waiting times, consider how you could streamline your appointment process. If they appreciate the friendly service of a particular staff member, acknowledge and reward that staff member. Showing your patients that you value their input and are willing to improve can significantly enhance their experience and loyalty.

Enhancing the patient experience should be a priority for every optometrist. It is a powerful strategy to retain your existing patients and attract new ones. The key is to understand your patients' needs and expectations, leverage technology for efficient service, and emphasize continuous improvement through patient feedback.

Let’s work together to provide unparalleled patient experiences, one eye examination at a time.

Do you have questions about enhancing your patient experience? Schedule your call.

Want to learn more about Williams Group consulting? Visit our website.

Bess Ogden

Director of Education and Training
Email Bess

 

 

Back to All Blogs

 

Start-Up Financing: Benefits of a Business Plan

Creating a business plan for a start-up practice is a crucial step in defining your new business vision and strategies for long-term success. A well-defined plan is important, not only when seeking financing, but also as a decision-making tool and road map for the process. A comprehensive business plan adds to your professional credibility, showing that you are serious about the practice and have invested time and effort into planning for the success of your new business. The plan also serves as a tool for ongoing management, helping to track progress, make informed decisions, and adjust strategies as needed based on performance and market changes.

Here are some key benefits of a well-crafted business plan:

  1. Market Analysis: Providing a thorough analysis of the local market, including demographics, competition, and demand for medical services, demonstrates that you understand the market landscape and have a plan to capture a significant share of it.
  2. Strategic Planning: The business plan outlines strategies for growth, marketing, and patient acquisition. This strategic approach shows financiers that you have a roadmap for building and sustaining the practice.
  3. Detailed Financial Projections: Financial projections, including capital expenditures and cash flow forecasts, provide a clear picture of expected revenue and expenses. This helps in demonstrating the practice's financial viability and ability to repay loans or attract investment.
  4. Clear Vision and Goals: A well-structured business plan helps articulate the vision and objectives of the practice, both in scope of the patient care and for attracting new patients. This clarity is essential for convincing lenders or investors of the practice’s potential success.
  5. Risk Assessment: Identifying potential risks and outlining mitigation strategies can reassure lenders or investors that you have considered possible challenges and have plans to address them.
  6. Operational Structure: Describing the organizational structure, including roles and responsibilities, can help in showcasing a well-managed practice. This includes detailing staffing needs, office management, and patient care protocols.

A well-crafted, comprehensive business plan not only aids in securing financing by conveying the viability the practice and effectively showcasing its potential for success, but it also serves as a valuable tool for guiding the development and management of your new start-up practice. Williams Group can help you with the development of your well-defined business plan, cash flow projections, capital expenditures, location/lease needs to support your practice vision and to prepare for successful lender financing.

Learn more about start-up practice consulting or schedule a call to discuss starting your optometry practice with Tammi Sufficool, MBA. 

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

Email Tammi

Back to All Blogs

 

Starting an Optometric Practice: Checklist Part 1

Three Part Checklist Series

Starting an optometry practice requires careful planning and execution. This three-part series will provide you an important framework for organizing your thoughts and plans for starting your own private practice.

Our expert teams of MBAs, CPAs and business consultants are trusted, experienced and knowledgeable in all aspects of practice start-up. We are ready to help you achieve a business that is not only profitable, solvent, and patient centered, but one that will provide you a lifetime of pride and financial rewards!

Let’s start with Checklist Part 1 as a systematic approach to guide your process planning.

Planning / Assessment

  • Self-Assessment: Assess your skills, knowledge, and readiness to start and run a practice. You may have deficiencies when it comes to your business experience or financial acumen, but those can be readily overcome with training and education. If you are ready to chart your own path on how you want to serve your patients and your community and want to be able to keep what you’ve earned, then there is no need to wait one day longer to live your dream of private practice ownership.
  • Define Your Niche and Your Ideal Target Patient: Decide whether you’ll focus on general optometry, ocular disease management, pediatric care, specialty services or combining these areas. This is your practice vision and we can help you achieve it.
  • Market Research Data: Williams Group will help you evaluate the demand for optometry services in the target area via research demographics, competitors, and community needs and assist with your location selection.
  • Competitive Analysis: Understand who your competitors are, their strengths and weaknesses, and how you can differentiate yourself. Our guidance will help you assess where and how you can stand out from the crowd and capitalize on your strengths to become the pillar of excellence in your community.
  • Define Your Unique Value Proposition: Determine what makes your product or service unique and how it solves your target customers' problems to provide sustainable profitability, solvency and long-term success.

 Finance / Practice Funding

  • Create a Business Plan: Once you’ve done some initial soul searching and market analysis, outline your business’s mission, vision, target market, revenue model, operational plans, marketing strategy, and financial projections. Our expert consulting team can help you with this important step.
  • Calculate Startup Costs: Determine costs for office space, needed build-out improvements, instrumentation, equipment, furniture, fixtures, frame inventory, EHR. Your wants and needs will need to fit snuggly into your cash flow and lending budgets. We can help finetune your cash flow projections to prioritize your best lending position.
  • Secure Financing: Identify sources of funding such as personal savings, personal investors, and commercial loans is key. Don’t get too far ahead of yourself with this step as your budget and forecast preparations will play a major role. Pro Tip: Lenders will be evaluating your practice’s risk for default as well as your own personal risk for default so keep discretionary personal expenses in check. Williams Group has decades of experience assisting start-up clients successfully navigate this important step of the process. We can help you, too!
  • Create a Forecast: Develop a forecast for estimated operational costs, including employee salaries, inventory purchases, rent, utilities, marketing, debt, and other expenses. We’ll help you project with confidence to make every dollar count.
  • Improve your Financial Acumen: Learn to read an income statement/ P&L statement, balance sheet, tax return; compute a break-even analysis, understand cost structure, up your financial knowledge to maximize profitability in your new practice. Our financial experts will provide you a foundational mini-MBA.

By staying organized and dedicated to the process, you can lay a strong foundation for your new business and increase your chances of success. Look for Checklist Part 2 and Checklist Part 3 soon. In the meantime, connect with Williams Group for guidance as you begin your journey to private practice ownership!

Learn more about start-up practice consulting or schedule a call to discuss starting your
optometry practice with Tammi Sufficool, MBA. 

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

Email Tammi

Back to All Blogs

 

Cost Considerations of Starting an Optometry Practice

Starting an optometry practice is a substantial financial endeavor with several key cost component considerations. A business plan, financial analyses and a market/demographic/location assessment are essential tools to hone in on the exact cost of your start up practice. Your initial cash outlay or capital expenditures should be differentiated from ongoing operational cash flow expenses. Williams Group’s expert consultants will guide and advise on all of the projections and decisions needed to achieve a fully-funded start-up practice that fits your budget.

Initial Planning and Research

  1. Market Research: While diving into the financial aspects of your project, you’ll need to define your mode and scope of practice along with the market and the demographics to support your vision. Costs for conducting surveys are part of the initial cash expense.
  2. Business Plan: Developing a solid business plan is crucial. Having an experienced consultant to guide and simplify the process saves time and effort which has big payoffs.  You will avoid muddling through process, inaccuracies with the timeline, and missteps with financial calculations and projections. With professional help, the time you save will be worth the investment when you open sooner. Costs for developing a business plan, financial analyses/ projections are part of the initial cash expense.

Startup Costs

  1. Occupancy Cost: The cost of leasing or purchasing space varies widely by location. In metropolitan areas, leasing can be a high-ticket expense. For a smaller community, it will be less, but determining a fair market value as well as terms, conditions and concessions of the lease will be paramount. You will need to pay a deposit and initial rent which will be another upfront expense. Williams Group will provide the expert guidance you need to avoid costly long-term missteps.
  2. Renovations and Furnishings: Depending on the condition of the space, renovations are a considerable expense and need to include the cost of an architect and contractor. Optical frame boards, furnishings, such as desks, chairs, and reception room furniture, along with office equipment, need to be considered as a cash outlay.
  3. Optometric Equipment: Essential equipment like a chair/stand, phoropter, slit lamp, BIO, autorefractors/auto-keratometers, perimetry analyzers, tonometers, as well as special testing instrumentation like a retinal camera, OCT, dry eye management technologies, or even an Optos can is a major consideration. Additional diagnostic equipment and technology may be in your budget.
  4. Technology and Software: Investing in Electronic Health Records (EHR) systems, practice management software, and other IT infrastructure are upfront and monthly ongoing costs.
  5. Frame Inventory:  Stocking an initial inventory of frames can be a significant investment. Your business plan will drive your selections.

Professional Legal Fees/ Tax Advisory Fees

  1. Legal Fees: Setting up a legal structure, drafting contracts, and other legal work is imperative part of business law. Our consultants provide the direction you need for your business decision ahead.
  2. Tax Advisory: Considering professional guidance for the tax status for your business entity should not be overlooked and is essential to minimize your business and personal tax burden. Williams Group can provide the expert guidance you need.

Marketing and Branding

  1. Initial Marketing: Establishing your practice’s presence through marketing materials, website development, and initial advertising campaigns are an imperative step and cash outlay. Additional strategies to attract new patients are key to achieving a thriving, successful business.
  2. Brand Development: Costs for designing a logo, business cards, and external signage should not be overlooked and add to the start-up cost.

Operational Cash Flow Expenses

Beyond the initial startup costs, be prepared for ongoing operational costs such as salaries, rent, utilities, inventory replenishment, and marketing. These recurring expenses will need to be managed to maintain a profitable practice.

  1. Salaries: Hiring staff, such as an optician, optometric technicians, receptionists, is an operational cost. Initial salaries differ annually, depending on your location and the number of employees.
  2. Benefits: Including health insurance and other benefits could add an additional 20-30% on top of salaries.
  3. Insurance: Professional liability insurance, property insurance, and worker’s compensation will need to be considered to the annual budget.
  4. Utilities: Expect to spend on monthly utilities such as electricity, water, and internet add up too.
  5. Licensing: Ensure you are up-to-date with local, state, and federal regulations.
  6. Miscellaneous: Other costs like office supplies, cleaning services, and unexpected expenses can also accumulate, so having a cash buffer is wise.

Total Startup Costs

Overall, starting an optometry practice involves careful planning and investment. It requires best practice processes, procedures and protocols. With the right strategy, professional guidance and execution, owning your own practice can be a rewarding endeavor, both professionally and financially.

Download our Cost Considerations to Starting an Optometry Practice White Paper for insights!

Learn more about start-up practice consulting or schedule a call to discuss starting your optometry practice with Tammi Sufficool, MBA. 

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

Email Tammi

Back to All Blogs

 

Strategies to Fill Your Patient Schedule

Creating awareness of your new optometry practice and filling your patient schedule is a challenge for a start-up practice. New business owners will need to implement a multifaceted approach that involves both new patient marketing and patient retention strategies. Below are some effective strategies your Williams Group Start-Up team will help you execute.

Effective Appointment Scheduling

Ensure your scheduling system is efficient and patient-friendly. Offer online scheduling options and reminders to reduce no-shows. Williams Group can help you implement a host of scheduling strategy to get your optometry practice in the black.

Patient Engagement and Communication

Maintain regular communication with patients through newsletters, emails, and social media posts to foster practice awareness. Educate patients about the importance of preventive care through vision and eye health evaluations, ocular disease management, and your specialty services. Williams Group provides quarterly social media posts and patient education to keep you on track.

Quality Care and Patient Satisfaction

Provide excellent patient care with a focus on customer service and patient experiences. The initial experience with your front desk staff, including telephone technique and an understanding of insurance plans, should not be overlooked. Accurate prescriptions, quality lens materials and an incomparable frame selection, are also key to outstanding perception of value and exceptional visual performance. Satisfied patients are more likely to return for more services and refer others to your practice. The experienced team at Williams Group will guide you and your team in providing an exceptional experience for every patient.

Continuing Education and Specialization

Stay updated with the latest medical advancements and consider specialization in a niche area to attract patients seeking specialized care. Stay true to your authentic calling and how you serve best.

Insurance Participation

Ensure your practice accepts a wide range of insurance plans to accommodate different patient needs. Williams Group can help you determine the best mix of medical and vision insurance plans for your target market.

Online Presence and Reputation Management

A professional website that is easy to navigate and provides accurate information about your services is just the start. Manage your online reviews and respond promptly to feedback. Your experienced start-up consulting team will help you formulate a comprehensive marketing plan with strategies to maximize your impact.

Marketing and Advertising

Use targeted online and offline marketing strategies to reach potential patients. This can include social media advertising, Google Ads, and local print and radio advertising, and asking for referrals.

Community Engagement and Networking

Participate in community events or health fairs to raise awareness about your practice. Sponsor local events or sports teams to increase visibility. Build relationships with other healthcare providers who can refer patients to your practice.

Patient Feedback and Adaptation

Regularly collect feedback from patients and use it to improve your services and patient experience.

By employing a combination of these strategies, you can help ensure that your new start-up practice schedule remains consistently full of patients who value and trust your services.

Learn more about start-up practice consulting or schedule a call to discuss starting your optometry practice with Tammi Sufficool, MBA. 

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

Email Tammi

Back to All Blogs

 

In the complex world of tax planning, finding ways to optimize your financial situation can be a game-changer. For optometrists working in clinics, one powerful strategy to consider is salary reduction. While it may seem counterintuitive to voluntarily reduce your income, there are several compelling benefits to doing so. In this blog post, we'll delve into the advantages of opting for a salary reduction in a clinic setting and explore how it can positively impact your overall financial health.

  1. Reduce Social Security and Medicare Tax

For many optometrists, a significant portion of their income is subjected to Social Security and Medicare taxes. These payroll taxes can take a sizable bite out of your earnings. However, by choosing to take a lower salary, you can reduce the amount of income subject to these taxes. This means that not only will you keep more of your hard-earned money, but you'll also see a reduction in your tax liability.

  1. Increase Qualified Business Income (QBI)

One of the most compelling reasons to consider a salary reduction is the potential increase in Qualified Business Income (QBI). QBI is a key factor in determining the deduction you can claim on your tax return, thanks to the Qualified Business Income Deduction (QBI Deduction), which was introduced with the Tax Cuts and Jobs Act.

By lowering your salary, you can increase the portion of your income classified as QBI, which, in turn, can lead to a larger deduction on your tax return. 

  1. Simplify Tax Payments

Quarterly estimate payments can be a headache for many optometrists. Keeping track of when and how much to pay can be a daunting task. However, with a salary reduction strategy in place, you may find that you can increase your federal and state (if applicable) withholdings. This means that more taxes are withheld from your paychecks throughout the year, reducing or even eliminating the need for quarterly estimate payments.

This shift towards a recurring payment of taxes can provide financial stability and peace of mind. Instead of scrambling to make four large payments throughout the year, you can budget more effectively with consistent, smaller withholdings.

  1. Recurring Owner Distributions

Now, you might be wondering how to manage your finances with a reduced take-home pay. The answer lies in the strategic use of recurring owner distributions. These distributions are generally non-taxable and can be used to replace the reduced income from your salary. By carefully planning these distributions, you can ensure that your living expenses are covered, all while reaping the tax benefits mentioned earlier.

In essence, opting for a salary reduction doesn't mean a reduction in your overall income; it means a smarter distribution of your earnings, allowing you to maximize tax benefits and simplify your financial life.

As an optometrist working in a practice, the benefits of taking a salary reduction can be substantial. From reducing your tax liability through QBI optimization to simplifying your tax payments and ensuring a steady flow of income through owner distributions, this strategy can significantly enhance your financial well-being. It's essential to work closely with a qualified tax advisor or financial planner to implement these strategies effectively and in compliance with tax laws. By doing so, you can make the most of your clinic ownership and enjoy the financial rewards that come with it.

Maximize your benefits by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Archie Keebler

Tax Manager
Email Archie

 

 

Back to All Blogs

 

As an optometry-specific consultant, I have seen time and again how the right leadership team can propel an optometry practice to new heights. The benefits of a strong leadership team are indisputable: improved efficiency, increased profitability, and enhanced patient satisfaction. In this blog post, we will explore the benefits of building a leadership team within your optometry practice and provide practical steps to help you create an exceptional team.

Benefits of Building a Leadership Team in Your Optometry Practice

Empowered Decision-Making: A well-structured leadership team can quickly make informed decisions, driving the practice toward its strategic goals. With clear roles and responsibilities, leaders can focus on their specific areas of expertise and work together to make decisions that benefit the entire practice.

Enhanced Patient Experience: When the leadership team is united in its focus on providing excellent patient care, this commitment permeates throughout the practice. A strong leadership team can work together to identify areas for improvement and ensure that patient needs are always met.

Increased Employee Engagement: A motivated leadership team can create a positive work environment, fostering a sense of belonging and pride among staff members. When employees feel valued and appreciated, they are more likely to be engaged in their work, ultimately benefiting the practice and its patients.

Streamlined Operations: A strong leadership team can identify inefficiencies and implement new processes to improve overall operations. By working together, leaders can optimize the practice's performance, allowing for growth and long-term success.

Building Your Leadership Team: A Step-by-Step Guide

  1. Identify Key Roles. Begin by identifying the key roles that are essential to the success of your practice. These may include practice manager, clinical director, optical manager, and marketing coordinator. Once you have a clear understanding of the roles needed, you can begin to search for the right individuals to fill those positions.
  2. Create a Clear Vision and Mission. A successful leadership team requires a shared vision and mission. Collaborate with your team members to develop a clear and compelling vision and mission statement that guides decision-making and sets the course for the future of your practice.
  3. Develop a Leadership Development Program. Invest in the growth of your leadership team by creating a development program that focuses on building essential skills, such as communication, conflict resolution, and problem-solving. Encourage team members to attend conferences, workshops, and other professional development opportunities to continue honing their skills.
  4. Foster a Collaborative Environment. Encourage open communication and collaboration among your leadership team members. Schedule regular meetings to discuss progress, address challenges, and brainstorm new ideas. Foster a culture of continuous improvement, where team members feel empowered to share their thoughts and ideas.
  5. Set Clear Expectations and Accountability. Establish clear expectations for each leadership team member and hold them accountable for their performance. Conduct regular performance evaluations and provide constructive feedback to help each team member grow and improve in their role.
  6. Celebrate Successes. Recognize and celebrate the achievements of your leadership team, both individually and collectively. Acknowledging their hard work and dedication will motivate them to continue striving for success.

Building a strong leadership team is essential for the success of your optometry practice. By focusing on developing the right team, fostering a collaborative environment, and investing in their professional growth, you can create a thriving practice that provides exceptional patient care and experiences continued growth.

Ready to discuss building your leadership team? Schedule your call.

Want to learn more about Williams Group consulting? Visit our website.

Bess Ogden

Director of Education and Training
Email Bess

 

 

Back to All Blogs

 

Tax laws can be complex, but understanding the nuances can make a significant difference in your financial strategy. One such provision that can benefit homeowners is Section 280A(g), commonly known as the Augusta Rule. This rule provides an opportunity for individuals to exclude rental income if their property is rented out for less than 15 days in a year. In this blog post, we'll delve into the details of the Augusta Rule, explore its requirements, and offer some practical recommendations for homeowners looking to take advantage of this provision.

Section 280A(g) in a Nutshell: 

The Augusta Rule, outlined in Section 280A(g) of the Internal Revenue Code, offers homeowners the ability to exclude rental income from their taxable earnings under specific conditions. Here are the key details:

  1. Primary Use Must Be Personal: To qualify for the Augusta Rule, the property's primary use must be personal. This includes primary residences, secondary homes, and vacation homes. In other words, it's not applicable to properties used exclusively for rental purposes.
  2. Expenses Are Not Deductible: While you can exclude rental income, it's important to note that expenses related to these rentals are not deductible. This means you won't be able to deduct costs like maintenance, repairs, or utilities for the period the property is rented under the Augusta Rule.
  3. Non-Consecutive 14 Days: The 14 rental days do not need to be consecutive. This flexibility allows homeowners to take advantage of sporadic rental opportunities without losing the tax benefits provided by the rule.
  4. Reasonable Rental Price: The rental price must be reasonable. While this might seem subjective, it's crucial to ensure that the rent charged is consistent with market rates. 

Tax Planning Opportunity for Business Owners:

Have you ever explored the option of utilizing your home for corporate meetings or office parties? If so, you could potentially leverage the Augusta Rule, allowing your business to compensate you for the business use of your home. As noted earlier, this income can be excluded on a personal level.

Practical Recommendations:

If you're considering utilizing the Augusta Rule to exclude rental income, here are some practical recommendations:

  1. Market Research: Before setting a rental price, conduct thorough research to determine what constitutes a reasonable cost in your area. Check prices for similar properties on rental websites, inquire about rates for hotel conference rooms, and explore other potential sources to establish a competitive rental price.
  2. Document Everything: Keep meticulous records of your rental arrangements. Document the pricing agreed upon, the formal agreement to rent the residence, and minutes of any meetings or discussions related to the rental. These records will be crucial in case of any inquiries or audits.
  3. Involve Relevant Parties: If multiple individuals are involved in making decisions related to the business, be sure to include them in any meetings at the residence. This transparency ensures that all stakeholders are aware of and agree to the rental arrangements.

The Augusta Rule, found in Section 280A(g), provides a valuable opportunity for homeowners to exclude rental income from their taxable earnings when certain conditions are met. By understanding the rule's requirements and following practical recommendations, homeowners can navigate the complexities of tax law and make the most of this tax-saving provision. Always consult with a tax professional or advisor to ensure you are taking full advantage of available tax benefits while staying in compliance with tax regulations. 

Get help understsanding the Agusta rule by scheduleing a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Archie Keebler

Tax Manager

Email Archie

 

Back to All Blogs

 

Implementing High Tech in Your Practice

Implementing innovative technology is an essential step in opening a successful practice. Choosing the right technology and equipment, aligned with the mission of your practice, will contribute to enhanced patient care and operational efficiency as well as the overall effectiveness and financial success for your eye care practice.

  1. Improved Patient Care: Advanced medical technologies such as diagnostic instrumentation and electronic health records (EHR) enable more accurate diagnoses, timely interventions, and better treatment outcomes. Depending on your scope of practice, you may be considering diagnostic equipment for primary care, ocular disease management, dry eye, specialty contact lens or myopia management, vision therapy.
  2. Practice Management Software: Another non-negotiable is practice management software which will streamline administrative tasks such as scheduling appointments, managing billing and payments, frame inventories and laboratory orders, generating management reports. Integration with your EHR system and partner vendors ensures smooth and seamless operations.
  3. Streamlined Communication: Technologies like secure messaging systems (i.e., eRx) facilitate seamless communication among healthcare providers, reducing delays in care coordination and improving patient safety by ensuring that all relevant information is readily accessible to authorized personnel.
  4. Compliance and Security: Modern technologies often come with built-in security features that help practices comply with healthcare regulations (i.e., HITECH Act, HIPAA Compliance). They also offer robust data encryption and backup solutions to protect sensitive patient information from breaches or data loss.
  5. Enhanced Efficiency: High-tech solutions streamline data capture and prescription management as well as operational tasks of appointment scheduling, billing, and record-keeping. Reduced administrative burden for you and your staff allows more time to focus on patient care and practice care. It also minimizes errors that can occur with manual processes.
  6. Cost Savings: While an initial investment in high-tech systems can be significant, over time, technological expenditures often result in cost savings with direct, accurate data integration and decreased administrative overhead.
  7. Patient Engagement: Mobile-friendly websites and patient portals empower patients to take a more active role in their healthcare. Patients can access their medical records, communicate easily with you and your staff, and receive personalized health information, promoting better health outcomes through increased engagement. Incorporating a patient communication system which offers text communication and online payment options is a smart investment. Email marketing, social media management and online scheduling enhances the patient’s perception of your practice.
  8. Competitive Advantage: Practices that embrace technology are perceived as modern and forward-thinking, potentially attracting more patients who value innovation and convenience in their healthcare delivery. High-tech along with high-touch is a winning strategy.

Integrating high-tech solutions into an optometric practice not only enhances patient care and operational efficiency but also positions the practice at the forefront of healthcare innovation, ultimately leading to better patient outcomes and satisfaction. And, what’s good for your patients will result in a more profitable and solvent business for you.

Learn more about start-up practice consulting or schedule a call to discuss starting your practice with Tammi Sufficool, MBA. 

Tammi Sufficool, MBA

President Practice Start-Ups / New Business Advisor

Email Tammi

Back to All Blogs

 

As a business owner or self-employed individual, one of the many financial aspects you need to consider is how to calculate deductible expenses related to your vehicle. The IRS provides two primary methods for calculating these expenses: the Standard Mileage method and the Actual Expenses method. Understanding the nuances of each method and when to use them can have a significant impact on your tax liability. In this blog post, we'll break down these two methods and explore some key considerations to help you make informed decisions about deductible expenses. 

Method 1: Standard Mileage Method 

The Standard Mileage method is the go-to choice for individuals who own their vehicles and use them for business purposes. The calculation is straightforward: 

Multiply business miles by the IRS standard mileage rate. 

This rate is determined by the IRS and varies year to year. For example, in 2023, the standard mileage rate is 65.5 cents per mile for business use. 

One notable advantage of this method is that if your business reimburses you for these miles, the reimbursement is deductible by the business and is not taxable income for you.  

Overall, this is the simplest method for taxpayers with the least amount of documentation required. 

Method 2: Actual Expenses Method 

The Actual Expenses method comes into play when your business owns the vehicle. This method involves a more detailed and comprehensive approach to calculating deductible expenses: 

  1. Keep a log of all miles driven. 
  2. Determine your business use percentage by dividing business miles by the total miles driven for the year. 

If your business use percentage is less than 50%, this method may not be the most advantageous for you. It's crucial to assess your specific situation before committing to this approach. 

Within the Actual Expenses method, there are two sub-methods to figure deductible costs: 

  • Income Inclusion Method: Deduct all vehicle-related costs and add personal miles to compensation on the individual's W-2 form. This means that personal use of the vehicle is included in your taxable income. 
  • Expense Exclusion Method: Reduce actual costs by personal miles. Under this method, personal use of the vehicle does not result in additional income on your W-2 form. 

Key Considerations 

  1. Business Miles Definition: Business miles include trips to meet patients, traveling between business locations, trips for banking or shopping for business purposes, attending business meetings, continuing education trips and transporting equipment. Commuting from home to your business location and back is not considered business mileage. 
  2. Vehicle Weight Matters: Vehicles between 6,000 and 14,000 pounds can be fully depreciated, potentially providing significant tax benefits. For vehicles under 6,000 pounds, depreciation is capped, with a limit of $20,200 in 2023. 

Calculating deductible expenses related to your vehicle can be a complex task, but it's a crucial aspect of managing your finances as a business owner or self-employed individual. Understanding the Standard Mileage and Actual Expenses methods, as well as their associated sub-methods and considerations, can help you make informed decisions that maximize your tax deductions while staying compliant with IRS regulations. It's advisable to consult with a tax professional or accountant to ensure you're following the most advantageous approach for your unique situation, ultimately helping you keep more of your hard-earned money. 

To get help with calculating expenses, schedule a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Patrick McReynolds

Operations Manager

Email Patrick

 

Back to All Blogs