402.488.2020

For years, meals provided for the convenience of the employer such as food during long clinic days or snacks kept in the breakroom have generally been 50% deductible.

Starting January 1, 2026, an important tax change will affect optometry practices that occasionally provide meals or snacks for staff and those expenses will no longer be deductible at all. 

Practices can still provide food for their team, but the cost will no longer reduce taxable income. For optometry practice owners, this change likely won’t alter daily operations, but it will affect how these expenses show up on your tax return.

Why the Deduction Is Changing

Under current tax rules, many businesses have been able to deduct 50% of employer-provided meals when they were considered necessary for business operations. However, the Tax Cuts and Jobs Act (TCJA) included a provision that phases out this deduction beginning in 2026.

Once the rule takes effect:

  • Meals provided for the convenience of the employer will become fully nondeductible
  • The expense will still be allowed from a business standpoint
  • But it will no longer reduce taxable income

For practices that regularly provide meals or snacks for staff, this simply means those expenses will now be treated similarly to other nondeductible costs.

What This Means for Optometry Practices

Common examples many optometry practices provide food for their team include:

  • Lunch brought in during long clinic days
  • Food provided during staff meetings or training sessions
  • Meals during extended work hours
  • Breakroom snacks or refreshments available to employees

These expenses will remain acceptable from a practice management perspective, but they will no longer generate a tax deduction.

For most practices, the financial impact will be relatively small. Still, it’s helpful to understand how these expenses will be treated going forward.

Meal Expenses That Will Still Be Deductible

Not all meal deductions are disappearing. Certain business meals will still qualify for a 50% deduction, including:

  • Meals With Referral Sources or Business Partners
    • Meals where business is discussed with referral partners, vendors, or other professionals can still qualify as business meals.
  • Meals During Business Travel
    • Food purchased while attending conferences, continuing education events, or other business travel will continue to qualify for a 50% deduction.

To remain deductible, these meals must follow standard IRS rules:

  • Expense cannot be lavish or extravagant
  • Documentation should include date, location, attendees, and business purpose

Proper recordkeeping will continue to be important for these deductions.

Events That Remain 100% Deductible

Some employee-related events will still qualify for a full deduction. These include activities considered employee morale events, such as:

  • Holiday parties
  • Staff appreciation events
  • Occasional celebrations open to all employees

Because these events are considered employee benefit activities rather than routine meals, they continue to receive different tax treatment.

How Optometry Practices Can Prepare

For most optometry practices, this change won’t significantly alter day-to-day operations. Many offices will continue providing meals or snacks for staff when it makes sense operationally. However, practices may need to review how these expenses are tracked and categorized in their accounting records. Separating meal categories can make tax reporting easier once the rule takes effect.

For example, track:

  • Staff meals
  • Business development meals
  • Travel meals
  • Employee morale events

Clear categorization helps ensure that deductible expenses are handled correctly while nondeductible costs are properly recorded.

While the financial impact of routine staff meals and breakroom food will no longer be tax deductible will likely be modest for most optometry practices, understanding the rule ahead of time can help ensure expenses are properly categorized and tax reporting remains accurate. 

As always, small planning decisions throughout the year can make tax preparation smoother and help prevent surprises.

If you’re unsure how this change may affect your practice or if you’d like help reviewing your bookkeeping categories, working with an optometry-specific CPA can help ensure everything is handled correctly.

Not a Williams Group client and feeling unsure about your categories? Schedule time with Archie Keebler, CPA, one of Williams Group’s premier optometry-specifc CPAs.

Archie Keebler

Tax Manager
Email Archie

 

 

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A Practical Guide to Reducing Payroll Stress, Improving Clarity, and Protecting Profitability

Payroll shouldn’t be the most stressful part of running your practice. But for many optometrists, it is. Not because the math is complex, but because the systems behind payroll often lack clarity and consistency. This guide outlines four actionable steps to reduce payroll stress, improve team clarity, and protect profitability based on Williams Group’s experience processing payroll for hundreds of optometric clients.

Payroll quickly becomes a headache and your labor costs quietly rise when:

  • Job roles are unclear 
  • Time tracking varies by person or shift 
  • Staffing levels aren’t aligned to patient flow 
  • And payroll information has to be manually re-entered into accounting 

The good news? These challenges are solvable with structure. 

The Root of Payroll Problems in Optometry Practices

Most payroll issues start with role confusion. This confusion leads to inconsistent productivity, which shows up as payroll inefficiency. When employees aren’t sure which tasks are theirs, practice owners often see: 

  • Inefficient labor: work being duplicated 
  • Unhappy patients: tasks being skipped 
  • Managerial burnout: staff asking for direction rather than acting
Step 1: Clarify Job Roles with Measurable Responsibilities

Clear job descriptions are more than lists of tasks and should spell out: 

Role  Responsibilities  Measurable Indicators 
Optician  Frame styling, lens consulting, adjustments, retail optical sales  Capture rate %, average optical sale, remakes 
Technician  Pre-testing, case history, special testing  Patients pre-tested per hour, accuracy of charting 
Patient Care Coordinator Scheduling, check-in/out, insurance verification  Scheduling conversion rate, wait time management 


When responsibilities connect to metrics, expectations become easier to manage and coach. 

Step 2: Align Staffing to Patient Flow

Overstaffing during slow periods and understaffing during busy periods is one of the biggest and most expensive payroll inefficiencies in eye care. Use historical patient volume reports, optical sales trends, daily/seasonal appointment patterns. 

To build staffing systems like: 

  • Split shift coverage during peak hours 
  • Cross-training to flex coverage where needed 
  • Scheduled “admin blocks” during slow periods so paid time is still productive 

By having better alignment there will be less waste and improved patient experiences.

Step 3: Use Time Tracking That Is Consistent, Transparent, and Enforced

If time is recorded differently depending on the day, person, or mood, payroll will always feel chaotic. 

Look for time tracking tools that: 

  • Require clock-in/out at the same station (not from phones) 
  • Track breaks and OT automatically 
  • Sync with scheduling software 
  • Export directly into payroll systems 

Consistency protects both the practice and the employee.

Step 4: Use Payroll Software That Integrates Directly with Accounting 

If someone has to manually re-enter payroll into QuickBooks, Xero, or your accounting platform: 

  • Errors creep in 
  • Reporting takes longer 
  • Month-end feels painful 
  • Labor costs are harder to analyze 

Payroll systems that sync with accounting provide: 

  • Instant labor cost visibility 
  • Cleaner bookkeeping 
  • Less time spent fixing errors 

Look for software that integrates payroll, scheduling, and time tracking so information flows automatically. 

The Result: Predictable Payroll and Less Stress

When job roles are clear, staffing aligns with demand, and payroll software does the heavy lifting: 

– Payroll becomes more predictable
– Labor costs stay under control
– Team accountability improves
– Managers spend less time correcting errors
– You get a clearer picture of practice profitability 

This is how practices reduce stress and cost creep  without burnout or micromanaging. 

Payroll problems rarely mean someone is doing something wrong. They usually mean the system needs more structure. And structure is something you can build — sustainably. 

If payroll has become a recurring pain point in your practice, you don’t have to figure it out alone. 

Williams Group helps optometrists: 

  • Clarify job roles 
  • Optimize staffing levels 
  • Implement integrated payroll + accounting systems 
  • Build predictable, efficient financial operations 
  • Process payroll wages and tax payments for direct deposit

Schedule a consultation to evaluate your current payroll workflow. 

Get optometry-specific payroll support by scheduling a call with Archie Keebler, CPA or learn more about our accounting services, specific for ODs, on our website.  

Archie Keebler

Tax Manager
Email Archie

 

 

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The Optometry Trap: When a “Write-Off” Isn’t the Win You Think

You know the moment. You’re at an optometry conference, you demo the new toy (I mean equipment), and suddenly your brain starts doing that thing where it turns a capital purchase into a personality trait. Or maybe it’s the end of the year and you don’t like the tax number Archie or Ryan (Williams Group Accountants) said you might owe next year.
Then someone says the magic words: “It’s a write-off.”

If you’ve ever caught yourself thinking, “well if it’s a write-off, it’s basically free,” we need to talk.

Meet Sue (an optometrist and her very persuasive equipment rep)

Sue owns a growing optometry practice. Her schedule is full, optical sales are strong, and her staff is doing that heroic thing where they keep the day moving even when everything’s on fire behind the scenes.

Sue gets pitched a shiny piece of equipment when the rep uses all the right phrases like: “It’ll change patient care,” “it increase referrals,” and “it will pay for itself.”
Sue questions: “Will I be able to write it off?”
The rep smiles. Sue smiles. The IRS does not smile. The IRS has never smiled. Not once.

First, What a “Write-Off” Actually Does
Here’s the thing: a deduction reduces your taxable income. It does not reduce your tax bill dollar for dollar.
Example – If you spend $50,000 on equipment and you get a $50,000 deduction, you did not “save $50,000.” You reduced the income you pay tax on by $50,000.
The actual tax benefit depends on your situation, your marginal rate, and whether you can even use the deduction this year.
I like to describe it as a 25% off sale. It saves you some money, but it’s not a slam dunk!
Also —and this is important— a deduction never fixes a bad business purchase. It just makes the bad purchase slightly less painful.

The Five Costs That Usually Get Ignored (Until They Show Up on Your Doorstep)
Most practices focus on the purchase price. The real cost is usually “purchase price plus the entourage.”
 
What usually gets forgotten:
  • Maintenance contracts and software fees. Monthly subscriptions have a way of multiplying like rabbits.
  • Training time. If your lead tech is in training, they’re not in clinic doing lead tech things.
  • Downtime and bottlenecks. New workflows are messy before they’re magical.
  • Consumables and add-ons. The base unit is never the whole story.
  • Staffing and scheduling impacts. If it adds 6 minutes per patient and you don’t have a plan, it may quietly shrink capacity.
None of these are reasons not to buy equipment. They’re reasons to buy with your eyes wide open. Ask the salesman about these issues before you commit to purchase.

The IRS “Rules of the Road” for Equipment Purchases
When you buy equipment for the practice, the IRS generally wants you to treat it differently than everyday supplies. Pens, contact lens solution, and printer paper get used up quickly, so they’re usually expensed right away. Equipment is different because it has a useful life that stretches beyond the current year, so the default rule is you capitalize it and recover the cost over time through depreciation.
There’s a common shortcut many practices use called the $2,500 de minimis safe harbor. In plain English: if you have a consistent accounting policy and you attach the election to your return, you can usually expense items that cost $2,500 or less per invoice (or per item, if itemized) instead of capitalizing them. Anything above that amount is typically capitalized unless you use a specific tax provision that allows faster write-offs.
The result? “I bought it” is only step one. The next step is deciding whether it’s a supply expense, a capital asset, or a capital asset you’re choosing to expense faster.

The Tax Reality Checks That Keep You Out of Trouble
Reality Check #1: The Timing Is About “Placed in Service,” Not When You Swipe the Card
For depreciation purposes, property is generally considered placed in service when it is ready and available for its specific use, even if you have not actually used it yet.
Translation: ordering it in December is not the same as having it installed, calibrated, and ready to use.
This is the trap that gets optometrists every year. The equipment is in a box. The contractor reschedules. Training is “next week.” And suddenly your “year-end write-off” is actually next year.
 
A Quick Example (because this is exactly how it happens)
Sue buys an OCT in December. It arrives. Everyone cheers. The install gets pushed to January. Training happens mid-January. It’s ready and available for use in January.
Sue still bought it in December, but the placed-in-service timing points to January. The tax deduction is shelved for next year. That’s not the IRS being mean. That’s just the IRS being the IRS.
If Sue had planned the timeline ahead of time, she would’ve known the likely tax year and could’ve decided whether the purchase still made sense.
 
Reality Check #2: “Immediate Write-Off” Is Not Guaranteed
Sometimes you can expense more up front, sometimes you depreciate over time, and sometimes you have choices. Section 179 is an election that lets you expense qualifying property up to certain limits, and it’s tied to when the property is placed in service. There’s also Bonus Depreciation we can use.
The rules and limits change over time, and the best choice depends on your tax picture. The point isn’t “always expense everything.” The point is “choose on purpose.”
 
Reality Check #3: Losses Aren’t Always as Useful as People Think
A big deduction is only a win if it offsets income you would otherwise be taxed on. If the purchase creates a loss, that loss might be limited or pushed into a future year depending on your setup and your broader return.
So if the clinic is already in a low-profit year, buying equipment purely for tax reasons can be like bringing a snowblower to Arizona. Technically, a tool. Practically, an odd choice.
 
Reality Check #4: Documentation Matters, and Vibes Don’t Count
If you ever get questioned, you want a clean story: what it is, what it cost, when it became ready and available for use, and that it’s used for business.
Helpful paperwork usually includes the invoice, delivery confirmation, install documents, training confirmation, and any “go-live” notes. The IRS is very into boring proof.

The “Buy It Like a Grown-Up” Playbook for 2026
Here’s a simple framework Sue can use that keeps both the business and tax sides aligned.
1) Start with the Business Case
Before tax savings are considered, answer two questions: Will this increase capacity, improve medical revenue, reduce headaches, or improve patient experience in a measurable way? And do we have the people and workflow to actually use it?
If the honest answer is “it would be cool,” that’s fine. Just don’t call it tax strategy.
 
2) Match the Purchase to Your Profit Year
Equipment strategy works best when it’s paired with a year where the practice has real taxable income. Depreciation is cost recovery, not a magic trick.
If you’re unsure what your year looks like, grab our most recent Cash Flow or Tax Planning document and see how we’ve predicted your year to turn out. Double check sales—if Doctor Days made sales take a plummet, we might need to reconsider the profit for that year.
 
3) Plan the Calendar, Not Just the Purchase
If you care which tax year the deduction lands in, you need a timeline that includes delivery, install, calibration, training, and being ready for clinical use. That’s what “placed in service” is getting at.
This is especially important late in the year, when vendors and contractors are booked and delays are normal.
 
4) Decide How You Want to Take the Deduction
At a high level, your options often include depreciating over time or electing faster methods like Section 179 when available and appropriate.
This is where planning matters. Sometimes you want the bigger deduction now. Sometimes you want to spread it out to stabilize taxes across years. Sometimes you want to preserve deductions for a higher-income year. Book some time with Archie or Ryan to discuss which would be better for your specific case.
 
5) Build the Total Cost Into Your Budget
If you buy equipment and then get surprised by maintenance fees, software, and staffing needs, that’s not a tax problem. That’s a planning problem.
A clean rule: if the ongoing costs make you flinch, you’re not ready to buy it yet.
The Bottom Line
If you want to buy equipment because it improves care and strengthens your optometry practice, great. That’s the best reason.
If you want to buy equipment because “it’s a write-off,” pause. A deduction is a nice side effect, not the main event. The main event is whether the purchase makes your practice better and whether it fits your profit, cash flow, and execution plan.

Thinking About a Purchase (or Already Committed to One?)
If you want support on planning your next purchase, reach out to your Williams Group accountant with your 2026 wish list and your expected go-live dates. We’ll help you sort the purchases into three buckets:
  1.  smart now
  2.  smart later
  3.  cool but let’s not pretend it’s strategy
Not a Williams Group client and feeling unsure about a purchase or want a real equipment strategy for 2026, not “buy stuff in December and hope,” schedule time with Archie Keebler, CPA, one of Williams Group’s premier optometry-specifc CPAs. We’ll review your profit trends, cash flow, and timelines, then map out what to buy, when to buy it, and how to document it so the tax outcome actually matches the plan.

Archie Keebler

Tax Manager
Email Archie

 

 

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When optometrists begin exploring ownership, one question comes up again and again:

“Should I start an optometry practice from scratch or buy an existing one?”

Both are viable and valuable paths to ownership. That said, many ODs overlook the advantages of buying an established optometry practice, especially early in their careers.

If ownership is on your horizon, determining which option is right for you deserves real consideration. Let’s compare your potential optometry practice ownership options.

Cold Start vs Established: Understanding the Landscape

Starting from scratch allows full control over branding, patient experience, technology, and clinical philosophy. It’s a clean slate that lets you turn your vision into reality. Opening cold can come with a longer ramp-up, initial marketing demands, and a period of negative cash flow while patient volume builds.

Buying an existing practice provides immediate infrastructure: a patient base, staff, systems, equipment, and a known reputation in the community. The risk can be lower if you acquire a practice with consistent revenue and growth potential.

Both routes require preparation, financing, and vision. The key is to understand which fits your goals, lifestyle, and risk tolerance.

The Benefits of Buying an Established Practice

Here’s what makes buying worth a closer look:

1. Immediate Cash Flow
Instead of waiting months for a cold start to reach profitability, an established optometry practice can provide day-one income. The exam lanes are already busy, patients are scheduled, and revenue streams are active. This stability allows you to focus on patient care and growth strategies.

2. Built-In Patient Base and Staff
You’re not just purchasing equipment, you’re inheriting relationships. An established patient base means you walk into a schedule with loyal patients who already trust the practice. A trained team is often in place too, familiar with systems, workflows, and patient needs. That reduces the steep learning curve of hiring and training, giving you more time to lead and grow.

3. Shorter Ramp-Up to Growth
Purchasing an existing optometry practice lets you skip the ramp-up stage. With infrastructure, processes, and reputation in place, your energy can go toward improving efficiency, introducing new services (like specialty care or optical upgrades), and building equity.

4. Established Brand Recognition
Community recognition is an asset you can’t buy overnight. An established practice already has name recognition, goodwill, and word-of-mouth referrals working in its favor. The existing awareness can lower your marketing costs and help patients feel continuity during the ownership transition. However, you can rebrand or refresh the image if needed when the time is right.

5. Applying for Financing
Banks and lenders are willing to back acquisitions because they can evaluate the practice’s financial track record. This typically makes loans easier to secure, often at better rates, and lowers your personal financial risk. With predictable revenue already flowing, you’re better positioned to manage debt service while still paying yourself a salary.

6. Reduced Risk
Every new business carries risk, but an existing practice has already proven it can thrive in its location and community. Demographic fit, patient demand, and business model are validated. You’re building on a foundation with a history of success.

7. Opportunities for Immediate Value-Add
Walking into a well-oiled machine doesn’t mean you can’t make it your own. Established practices often have untapped opportunities like modernizing technology, improving marketing, adding specialty services, or optimizing operations that can quickly increase profitability. In other words, you get the stability of a proven business with the potential of innovation.

Ownership Without Overwhelm

Ownership doesn’t mean burnout. The right practice, especially in communities underserved by health care, can give you both professional freedom and work-life balance. Purchasing an existing optometry practice oftentimes has the opportunity to keep the seller on board during the transition. This is great for a buyer to receive mentorship and continuity for patients.

No matter where you’re at in your optometry career, if you’re exploring ownership options, consider adding buying an established practice to your shortlist. You might be surprised at what’s available, affordable, and aligned with your goals.

Want Help Comparing Your Options?

Williams Group helps optometrists evaluate both established practice purchases and start-up paths for ownership. We’ll help you identify practices that match your vision or build an optometry practice from the ground up.

Explore optometry practices currently on the market or schedule a one-on-one call to discuss ownership strategies and determine which path fits you best.

Schedule a call with Brad Rourke, CPA, ABV to explore ownership strategies or browse optometry practices currently available on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
Email Brad

 

 

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Is An Associate OD an Employee or a 1099 Contractor?

Bringing on an associate OD is a major decision for your optometry practice. But classifying that associate incorrectly could expose you to a pile of IRS penalties, payroll tax issues, and even legal troubles at the state level.

The employee vs. independent contractor question isn’t just about taxes, it’s about how your practice functions day to day, and whether the associate is truly independent or a core part of your team.

This practical guide, built specifically for optometry practice owners, will walk you through how to structure the relationship correctly, what the IRS really looks for, and how to protect your practice from costly missteps.

How the IRS Defines the Relationship: 3 Key Factors

Contrary to popular belief, you don’t get to choose whether an associate OD is a contractor or employee. The IRS looks at the facts and circumstances, not what you write on the contract or how you pay them. Here are the three main categories the IRS uses to assess worker classification:

1. Behavioral Control

If the practice controls how the associate OD performs their work, they’re typically an employee.

Examples in an optometry practice:

  • Practice sets their clinic hours
  • Practice assigns patients to their schedule
  • Associate uses practice’s staff (techs, front desk, billing)
  • Associate follows office protocols for exams, documentation, and billing
  • Owner reviews the associate’s clinical performance

Bottom line? If the associate OD is following the practice’s directive, they’re most certainly an employee.

2. Financial Control

This part gets overlooked, but it matters. Indicators of an independent contractor include the ability to operate their own business. In an optometry setting, this rarely applies. 1099 contractor characteristics would typically include:

  • Investing in their own tools or equipment
  • Covering their own CE, licensing, and malpractice
  • Setting their own fees
  • Invoices you for services
  • Realizes a potential to earn a profit or take a loss

Most optometry practices fail these tests because the clinic controls financial aspects of care delivery.

3. Type of Relationship

This one zooms out and looks at the overall working relationship.

Here’s what the IRS checks:

  • Is there a formal written employment agreement?
  • Is the practice providing benefits like PTO, health insurance, or a 401(k)?
  • Is this a long-term relationship that’s integral to the business?
  • Do you represent the associate publicly (e.g., on your website)?

In almost every full-time associate scenarios where associates provide core services that are essential to the practice, these questions point straight to employee status.

Can an Associate OD Ever Be a True Contractor?

Yes, but it’s rare and requires some very specific structuring. Here are the cases where a 1099 contractor may be possible:

  • The OD operates through their own entity (LLC or S-corp)
  • The OD sets their own schedule with no control from the practice
  • The OD uses their own equipment, staff, and provides services independently
  • The OD invoices you instead of receiving a paycheck
  • The OD is brought in for specialty or limited work, such as:
    • Fill-in or vacation coverage
    • Low-vision specialist seeing patients periodically
    • Mobile OD services contracting with the practice

But here’s the catch: If the associate OD works only for you, follow your protocols, and see your patients; they’re your employee.

Optometry-Specific Classification Traps to Watch Out For

Optometry isn’t like other industries. Patient care is heavily regulated, and that adds extra complexity. Some high-risk areas to be mindful of:

Patient Scheduling

If your front desk is booking patients for the associate, that is employee behavior.

Billing & Medical Records

Using your EHR and billing systems shows you’re in control of the clinical and financial side. That’s another employee signal.

Malpractice Insurance

If you’re footing the bill for malpractice coverage, the IRS sees that as an employer responsibility.

Non-Competes & Non-Soliciation 

You generally can’t restrict the future practice of a true contractor this way. These kinds of enforceable clauses only hold water with employees.

How Compensation Structures Tip the Scale

W-2 Employee:

  • Paid hourly, daily, or salaried
  • Bonuses based on production (optional)
  • Eligible for benefits
  • Payroll taxes withheld
  • Licensing/CE covered by practice

Independent 1099 Contractor:

  • Paid per diem or per exam
  • No benefits
  • Handles their own taxes
  • Provides their own malpractice coverage
  • Invoices the practice directly

If the compensation structure looks like a traditional employee arrangement, the IRS will treat them as an employee, regardless of what the contract says.

Practical Examples

Example 1: Full-Time Associate OD in a Busy Practice
  • 40 hours a week
  • Practice sets hours
  • Uses practice staff
  • Standardized exam protocol

Employee

Example 2: Part-Time Saturday OD
  • Schedules vary based on OD availability
  • Paid per diem
  • Not integrated into staff meetings or internal procedures

Could be a contractor if structured properly

Example 3: Fill-In Associate OD for Vacations
  • Works occasionally
  • Provides invoice
  • No ongoing commitments

Contractor

Example 4: Mobile OD Providing Specialty Exams
  • Brings own equipment
  • Bils per patient

Contractor

Consequences of Misclassification

Misclassifying an associate OD isn’t just a paperwork issue, it can create a financial mess for your practice. Here’s what a misclassification can trigger:

  • Back payroll taxes (plus interest)
  • Employer’s share of Social Security & Medicare
  • Penalties for not withholding federal and state taxes
  • Wage claims at the state level
  • Workers’ comp exposure
  • Liability for benefits that should’ve been offered

And yes, the IRS can look back three years or more during an audit.

Best Practices for Staying Compliant

If Hiring as an Employee (W-2):

  • Use a formal employment agreement
  • Provide a clear compensation structure
  • Set and enforce consistent clinic protocols
  • Run payroll properly
  • Offer benefits as desired

If Hiring as a Contractor (1099):

  • Require that they operate as an LLC or PC
  • Ensure they set their own hours and patient load
  • Have them invoice you
  • Avoid offering benefits or training
  • Skip the non-compete (but a non-solicit might still work)

For most optometry practices, hiring an associate OD means hiring an employee, not a contractor. A contractor arrangement is only appropriate when the OD is genuienly independent, works for multiple practices, or provides speialty/occasional services. 

Correct classification protexts your practice, minimizes risk, and ensures compliance with IRS and state rules. If you’re unsure, don’t guess. Talk to a CPA who understands optometry and can guide you through the compliance maze.

At Williams Group, we specialize in accounting, payroll, and advisory services for optometrists. Whether you’re bringing on your first associate OD or restructuring your current team, we’ll help you do it right and keep the IRS off your back. 

Get optometry-specific classification support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Archie Keebler

Tax Manager
Email Archie

 

 

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You’ve put in the hours. Mastered patient care. Navigated the demands of associate optometrist life.
Now what?

If you’re feeling the slow burn of ambition, you’re not alone. Thousands of optometrists are beginning to ask the same question:

“Is now the right time to own my own optometry practice?”

If you’re asking, you’re closer than you think.

Why Early-Career Optometrists Are in a Prime Position to Buy a Practice

Most optometrists believe they need decades of experience or a massive savings account before considering practice ownership. But here’s the truth:

– You may already have the clinical skills.
– You’ve seen how optometry practices operate (for better or worse).
– You know how to build strong patient rapport.
– You have growing professional confidence.

That’s the same foundation many successful practice owners had when they made the leap.

Buying an established optometry practice gives you instant cash flow, existing patients, trained staff, and a built-in reputation. You’re starting with momentum.

But I’m an Associate. Should I Still Consider Ownership?

Absolutely. In fact, many associate optometrists make excellent owners.

You’ve worked in high patient volume environments, learned streamlined operations, and mastered time management. These are invaluable assets when stepping into ownership. Your ability to manage workflow and production will serve you well in a practice of your own, especially one with growth potential.

What’s more, you may already be feeling the limitations:
– Controlled schedules: Your day is dictated by preset hours and appointment slots, leaving little flexibility for your personal life or your preferred approach to patient care. You’re operating within someone else’s framework.

– Cap on earning potential: No matter how hard you work or how much value you bring, your compensation may be capped. Raises and bonuses are slow to come, and your financial future feels dependent on others’ decisions, not by your own effort or ambition.

– Lack of autonomy in patient care and business decisions: You may feel constrained by policies that prioritize numbers over patients or decisions that don’t align with your vision of excellent care. On the business side, likely have little influence on investments, technology, or marketing, even when you have ideas for growth.

Optometry practice ownership restores those freedoms and more.

The Case for Buying Now, Not “Someday”

Waiting for the perfect moment often turns into waiting forever. Here’s what we see from optometrists who decide to buy now:

– Equity building from day ong
– Full control over patient care
– Tax advantages of business ownership
– Improved lifestyle, especially in rural or suburban settings
– A clear path to long-term financial independence

Best of all, there are optometry practices for sale right now that are affordable, thriving, and ready for new ownership.

What’s Next?

If the idea of optometry practice ownership excites you, even just a little, you owe it to yourself to explore what the future could look like. It’s possible and it’s often more attainable than you’ve been led to believe.

Contact us to schedule a confidential conversation. We’ve helped hundreds of optometrists find the right practice, at the right price, in the right community.

It’s time to work for yourself.
Let’s build your future.

Ready to talk about your ownership goals? Schedule a call with Brad Rourke, CPA, ABV or browse optometry practices currently for sale on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
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When most optometrists imagine buying an optometry practice, their minds often go straight to major metro areas, with dense populations, sleek offices, and endless amenities.

But in today’s market, some of the most high-potential and overlooked ownership opportunities are in rural, small-town communities.

If you’re exploring ownership, don’t dismiss these markets too quickly. Rural optometry practices can offer higher income, greater impact, and a better lifestyle than you’d expect.

Why Rural Optometry Practices Are Often Undervalued (And Why That’s a Good Thing)

There’s a common misconception that a lower population equals lower opportunity. In reality, the opposite is often true.

Here’s what buyers are discovering in rural and underserved markets:

1. Less Competition, Stronger Patient Loyalty
Fewer eye care providers in the area means your presence carries more weight. You’ll quickly become the go-to provider in the community. With fewer alternatives, patients remain loyal and referrals come naturally.

2. Lower Purchase Price, Higher ROI
Rural optometry practices typically cost less to acquire. That can mean:

  • Lower debt
  • Faster break-even
  • Stronger profit margins

It’s one of the most cost-effective ways to build equity while owning a business that produces immediate cash flow.

3. High Demand for Care, Especially Medical Optometry
Many small towns are healthcare deserts. These underserved communities lack access to quality eye care. By adding medical optometry or specialty services (like dry eye, myopia control, low vision), you can accelerate growth and fill a critical healthcare need.

4. Better Work-Life Balance
Rural life offers more than a slower pace. It delivers tangible lifestyle benefits:

  • Shorter commutes
  • Affordable cost-of-living
  • More time for family and hobbies
  • Less burnout, more autonomy

What About My Family, Schools, and Career Growth?

One of the biggest hesitations we hear from buyers is:
“Will my spouse be able to find work? Is the education good enough for my kids? Is this a safe community to raise my family? Will I be professionally isolated?”

These are exactly the kinds of questions you should be asking and the answers may surprise you!

  • Community Opportunity: Many rural communities are growing hubs for healthcare, education, manufacturing, and technology. With flexible and remote work options, spouses with flexible careers often find more freedom and less stress in smaller towns.
  • Local School Systems: Don’t assume smaller means subpar. Many rural school districts are well-funded, community-driven, and offer smaller student-to-teacher ratios. You may find better academic performance and engagement than in some larger suburban districts.
  • Professional Development: Owning a rural optometry practice doesn’t mean working alone. With state associations, CE opportunities, online peer groups, and even local business meetups, you’ll stay connected and supported in your career growth.

Real Growth Happens Where You’re Needed Most

You want to build something meaningful. Owning an optometry practice in a rural community gives you that chance every day. With fewer providers and greater need, you’ll have:

  • More control over how your practice evolves
  • The opportunity to implement new technology and services
  • Deeper community relationships and impact
  • Ability to create a practice that reflects your values

When you’re the only optometrist (or one of a few), you’re a leader in local healthcare.

If your goal is to build equity, control your career, and make a lasting impression, a rural optometry practice may be exactly what you’re looking for.

Ready to Find the Right Rural Practice?

At Williams Group, we’ve worked with hundreds of optometrists who relocated to small towns where they grew their practices and improved their lives. 

Let’s find the right opportunity. We’ll help you evaluate communities, practices, and lifestyle fit. And the numbers.

Talk with Brad Rourke, CPA, ABV about small-town ownership opportunities by scheduling a call or discover high-value rural practices currently for sale on our marketplace.  

Brad Rourke, CPA, ABV

President + CEO
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A $30K Check Oops: Why Hand‑Written Tax Payments Are Bad for Your Vision (and Your Wallet)

Spoiler: the couple is fine, but their ulcer risk shot up—skip the antacids and read this instead.

What Happened

The digits in the number box were perfect: $3,360. But the spelled‑out line said “thirty‑three thousand + 60.” The bank followed the words, not the numbers. The IRS tried, twice, to pull $33,060. Both drafts bounced. The Hays couple then got slapped with a $661 “failure to pay on time” penalty and a month of IRS hold music.

Why This Matters to Practice Owners

Optometry clinics still cut paper checks for frame vendors, labs, maybe even quarterly taxes. One stray pen stroke can turn an easy task into a migraine. IRS automation isn’t always your friend. If the spelled-out amount is wrong, the payment system might no cross-check it with your return and no one’s proofreading in the mail room. So if the payment processing team never sees the tax return backup, errors slip straight through the system.

Key takeaways for doctors who would rather be seeing patients than seeing penalties
  • Ditch paper, go digital. Use IRS Direct Pay or EFTPS for estimates. The systems give you an immediate confirmation number and a clear audit trail.
  • Reconcile before you transmit. Whether you e‑pay or still insist on parchment, match the amount against your year‑to‑date QuickBooks file and make a PDF copy of anything you send.
  • Build a margin of safety. Keep at least one payroll cycle of cash in the tax account so a surprise draft, right or wrong, doesn’t choke your operating funds.
  • Know your escalation path. When the IRS phones ring forever, a practitioner’s best friend is a CPA with a Priority Practitioner line and a willingness to fax. Yes, still fax.
Practical steps you can adopt this quarter
  1. Flip the switch to electronic payments for federal and state estimates. We’ll walk your team through the EFTPS setup and store the credentials in a secure vault.
  2. Add a “two‑person review” rule for any manual checks over $5,000 including owner draws, so no one signs off half‑awake after a 12‑hour clinic day.
  3. Schedule an IRS account transcript pull every January. It confirms what the Service thinks you’ve paid and flags misapplied checks before interest starts compounding.
  4. Automate the cash sweep from operating to “Tax Alley” on each payroll run. You’ll never stare at a balance sheet on April 14 wondering where the money went.

The Williams Group Angle

We help optometrists stay profitable, generous, and out of the penalty box. Our bookkeeping platform matches deposits, estimates cash tax exposure in real-time, and pushes alert emails when something looks off. No six‑hour hold music required.

If you want that kind of calm in your practice finances, schedule a 30‑minute call. Let’s tighten the blind spots in your payment workflow. Because blurry numbers are just as dangerous as blurry vision.

This information was inspired by a report originally published by Yahoo Finance, highlighting a real-life tax payment error and its costly consequences. While this article is written in our words for clarity and relevance to optometry practices, all technical details and reporting were sourced.

Get optometry-specific tax support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Ryan Poirier

Certified Public Accountant
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IRS Payment Processing Glitch: What It Means for Your Practice and Your Blood Pressure

The short version: The IRS admits it is running late logging some electronic tax payments. As a result, perfectly compliant taxpayers are getting CP14 “balance-due” letters that claim they never paid. The agency says penalties and interest will be wiped away once the payments post, but you need to keep your cool and your proof of payment, until the electronic dust settles.

What exactly broke?

On June 12, the IRS issued a public statement acknowledging “a delay in processing some electronic payments.” Payments left your bank, but they are sitting in limbo inside the IRS mainframe. A notice may have been generated before the payment hit your account or the payment landed with data errors that need manual fixing.

Real-world fallout

Taxpayers from South Dakota to Chicago have opened their mailboxes to find fresh bills for taxes they already paid. One couple told CBS News the experience triggered a near panic attack—and a two-hour phone hold that ended with a dial-tone goodbye. cbsnews.com

Who is most likely to see a bogus notice?

  • Anyone who used Direct Pay or EFTPS on or near the April 15 deadline.
  • Married-filing-joint taxpayers when the second spouse made the payment through an IRS Online Account (the system has a history of dropping these payments).
  • Trusts that recently received CP161 notices for missing estimated taxes. The IRS called this last one a “programmer error.”

What the IRS wants you to do

  1. Do not pay again. Check your online account first.
  2. Monitor your account until July 15. If the payment still has not posted ten days before your CP14 response deadline, call the number on the notice.
  3. Skip the phone queue until then; the IRS says no call is needed unless the payment remains missing after mid-July.

Smart moves for practice owners

  • Screenshot everything. Save the confirmation number from Direct Pay, your bank statement showing the debit, and the CP14 itself.
  • Set a calendar reminder for July 5 to check your IRS account again.
  • Keep cash handy. If the payment never posts, you may need to re-pay to stop interest from compounding.
  • Delegate the headache. Give your CPA (hi, that’s us) a power of attorney so we can chase the IRS for you while you stay focused on patients instead of phone menus.

The bigger picture

The Taxpayer Advocate Service notes that IRS backlogs and staffing gaps are fueling these glitches. In plain English: the system is straining, and you are the spare part. Knowing your rights and keeping impeccable payment records is the best defense until the agency catches up

While this IRS glitch is frustrating, it doesn’t have to derail your peace of mind or your practice. Stay calm, stay documented, and don’t go it alone. Whether it’s resolving notices, monitoring payment status, or preventing future tax headaches, having an optometry-specific CPA in your corner can make all the difference.

We’re here to advocate, investigate, and help you stay financially focused, even when the IRS can’t.

This information is based on official updates and public notices from IRS.gov and related media coverage as of June 2025. While this article is written in our own words for clarity and relevance to optometry practices, all technical details and reporting were sourced from trusted government communications.

Get optometry-specific tax support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Ryan Poirier

Certified Public Accountant
Email Ryan

 

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Running a thriving optometry practice requires more than just providing excellent patient care. Managing overhead, investing in new equipment, and navigating ever-changing tax laws can significantly impact your bottom line. While many optometrists focus on growing revenue, few pay close attention to tax strategy—an oversight that can cost thousands in unnecessary taxes every single year.

Yes, you read that right. By unknowingly overpaying the IRS, successful practice owners miss out on tens of thousands of dollars in legal tax savings—money that could be reinvested into their business, retirement, or personal wealth.

The good news? With the right planning, you can legally reduce your tax burden and keep more of your hard-earned money.

In this article, we’ll cover the three most common and costly tax mistakes optometrists make—and how avoiding them could put six figures back in your pocket over the next few years. Whether you’re an established practice owner or just starting out, these insights can make a significant difference in your financial future. Let’s dive in.

Mistake #1: Paying Yourself the Wrong Salary in an S-Corp

One of the biggest financial missteps successful optometrists make is how they pay themselves. Many practice owners structure their business as an S-Corporation (S-Corp) to take advantage of tax savings, but without a strategic compensation plan, they end up overpaying in payroll taxes—or worse, attracting IRS scrutiny.

Why Your Salary Matters in an S-Corp

As an S-Corp owner, you don’t receive a traditional paycheck like an associate optometrist would. Instead, you’re both the business owner and an employee of your own corporation. This means your income is split into two parts:

^

Salary - This is your W-2 income, subject to payroll taxes (Social Security and Medicare).

^

Distributions - The remainder of your profits, which are not subject to payroll taxes.

The key to tax efficiency is striking the right balance. Paying yourself too much in salary means you’re overpaying in payroll taxes, while paying yourself too little increases your risk of an IRS audit.

The Cost of Overpaying Your Salary

Many optometrists set their salary arbitrarily high—often out of caution or habit—without realizing the tax implications. Let’s look at an example:

^

Dr. Smith, an optometrist, earns $300,000 from her S-Corp.

^

She decides to take a $200,000 salary, leaving $100,000 in distributions.

^

Payroll taxes (Social Security + Medicare) on her salary total $18,840.

Now, what if she adjusted her salary to a more reasonable $90,000, supported by industry benchmarks?

  • Her new payroll tax liability would drop to $6,885, saving her $11,955 in Social Security taxes.
  • She also avoids $5,800 in excess Medicare tax, bringing her total tax savings to $17,755 per year.

This Doesn’t Reduce Your Take-Home Pay

A common misconception is that lowering your salary means taking home less money. That’s not the case. Dr. Smith still earns $300,000 per year, but instead of taking it mostly as taxable wages, she shifts more of it into S-Corp distributions, which aren’t subject to payroll taxes.

She can still pay herself weekly or biweekly distributions, just like a paycheck. The only difference? She’s keeping more of her money rather than giving it to the IRS.

How Low is Too Low? The IRS Rule on “Reasonable Compensation”

Of course, you can’t just pay yourself a tiny salary to maximize tax-free distributions. The IRS requires S-Corp owners to take a “reasonable salary” based on industry standards, qualifications, and the services you perform. The challenge? The IRS doesn’t define a precise formula for what’s “reasonable,” but they do look at factors such as:

  • Your experience and role in the business
  • How much similar optometrists are paid in the marketplace
  • Your practice’s revenue and profits
  • Time spent on patient care vs. administrative work

Failing to meet this standard could result in an IRS audit, where they could reclassify your distributions as wages, forcing you to pay back payroll taxes (plus penalties and interest).

Most optometrists don’t have the time or the tools to determine their optimal salary strategy—and that’s where a tax expert comes in.

Mistake #2: Missing Out on Key Business Deductions

Many optometrists unknowingly overpay the IRS every year simply because they don’t take full advantage of available business deductions. Between patient care, managing staff, and growing their practice, tax strategy often takes a backseat—leading to missed opportunities to legally lower their tax bill.

The tax code is designed to benefit business owners, but only if they know what to deduct and how to do it correctly. The reality is, most optometrists are leaving thousands of dollars on the table.

The Most Overlooked Deductions for Optometrists

While standard expenses like office rent and utilities are obvious deductions, many optometrists fail to maximize tax-saving opportunities in these key areas:

1. The Home Office Deduction & The Augusta Rule

If you handle administrative work from home—whether it’s reviewing financials, scheduling, or managing payroll—you may be eligible for the home office deduction. Even if you have a separate office space, you can still deduct a portion of your rent or mortgage, utilities, and internet costs if you use a dedicated space for business.

Potential Savings: Optometrists with a qualifying home office typically deduct between $2,500 and $5,000 per year.

But what if you could legally pay yourself for using your home to host business meetings? There’s a little-known strategy that allows business owners to rent their home to their business tax-free for up to 14 days per year. This means you could write off the expense at the business level without picking it up as income personally—a clean way to pull additional money out of the practice 100% tax-free.

2. Business Vehicle & Mileage Deductions

Many optometrists use their personal vehicle for business-related activities, such as attending industry conferences, visiting suppliers, or networking with other professionals. However, most fail to track mileage or deduct auto expenses, missing out on significant tax savings.

  • IRS Mileage Deduction (2025 Rate): $0.70 per mile
  • If you drive 10,000 business miles per year, that’s a $7,000 tax deduction—a real savings of around $2,100 or more, depending on your tax bracket.
  • Alternatively, if you lease or own a car used for business, you may be able to deduct a portion of your payment, insurance, gas, and maintenance instead.

3. Business Meals & Entertainment

If you take referral partners, vendors, or key staff members out for business-related meals, 50% of those expenses can be deducted. This includes:

  • Taking a local optometric group leader out for lunch
  • Business meals while traveling to conferences
  • Meals during practice planning sessions

Many optometrists either fail to track these expenses or hesitate to deduct them out of fear of IRS scrutiny. The key is proper documentation—saving receipts and noting who attended and the business purpose.

Potential Savings: A practice owner who spends $500 per month on business meals could deduct $3,000 per year, reducing their tax bill by roughly $900 (assuming a 30% tax rate).

4. Paying Your Children Through the Business

Another underutilized strategy? Hiring your children to work in your practice. If your children help with tasks such as:

  • Filing paperwork
  • Cleaning office spaces
  • Managing social media or marketing efforts

You can legally pay them for their work—and as long as their wages remain under the standard deduction threshold ($15,000 for 2025), they won’t owe federal income taxes. Plus, if your business is structured correctly, you may be able to avoid payroll taxes on their earnings as well.

This creates a win-win: You shift income out of your higher tax bracket, fund their college savings or investment accounts, and convert what might have been an allowance into a fully deductible business expense.

5. Retirement Contributions (SEP IRA, Solo 401(k), or Cash Balance Plans)

Optometrists often underfund their retirement accounts, missing out on one of the most powerful tax deductions available. Unlike regular employees, business owners can set up tax-advantaged retirement plans that allow for much larger contributions—and major tax savings.

  • A Solo 401(k) or SEP IRA allows up to $69,000 in contributions for 2025 (depending on income).
  • A Cash Balance Plan could allow $100,000+ in contributions, providing massive tax deferral opportunities.
  • Every dollar contributed lowers taxable income, potentially reducing an optometrist’s tax bill by $20,000 or more per year.
How Much Are You Leaving on the Table?

By not taking full advantage of these deductions, an optometrist could be overpaying the IRS by $30,000 or more annually—money that could be reinvested in the practice, retirement, or personal wealth.

The problem isn’t that these deductions aren’t available. It’s that most optometrists either don’t know about them or don’t track them properly. That’s where working with a tax expert can make all the difference.

Mistake #3: Failing to Maximize Depreciation on Equipment & Office Buildout

Running an optometry practice isn’t cheap. Between diagnostic equipment, office furniture, and leasehold improvements, practice owners often spend hundreds of thousands of dollars just to keep their office up to date. The good news? The IRS allows you to deduct these costs over time. The bad news? Most optometrists don’t realize they could be deducting much more, much faster.

The Depreciation Trap: Why Most Optometrists Pay More Than They Should

When you buy new equipment—whether it’s an OCT, an autorefractor, or a retinal imaging system—the IRS typically expects you to spread out the deduction over 5 to 7 years. If you renovate your office, those costs might be spread over 15 or even 39 years.

That’s a long time to wait for your tax savings. But here’s the thing: You don’t have to wait.

How Smart Practice Owners Cut Their Tax Bill

There are tax strategies available right now that allow you to deduct more of these expenses upfront, reducing your tax bill significantly in the year you make the investment.

For example, instead of slowly writing off a $150,000 equipment purchase over several years, an optometrist could potentially deduct $90,000 or more immediately—saving $27,000 or more in taxes this year alone.

The same goes for office renovations and leasehold improvements. Many optometrists think they have to depreciate these expenses over decades when, in reality, there are legal ways to unlock tens of thousands of dollars in deductions much sooner.

How Much Are You Leaving on the Table?

If you’ve recently bought equipment, upgraded your office, or are planning a build out soon, there’s a good chance you could be saving $30,000–$50,000 (or more) in taxes this year—if you structure things correctly.

The problem? The IRS doesn’t make it easy. Depreciation rules are complicated, and most optometrists either don’t know their options or aren’t using them to their full advantage. That’s where expert guidance makes all the difference.

Stop Overpaying the IRS—It’s Time to Take Control of Your Taxes

If you’ve been making one (or more) of these tax mistakes, you’re not alone. Even the most successful optometrists unknowingly leave tens of thousands of dollars on the table every year—simply because they don’t have the right strategy in place.

A smart tax plan isn’t just about compliance—it’s about keeping more of what you earn so you can reinvest in your practice, your future, and your financial security. With the right approach, you could:

^

Lower your payroll taxes without changing your take-home pay

^

Maximize deductions you're already eligible for

^

Accelerate depreciation and free up cash for your business

^

Legally reduce your tax burden - year after year

The key is knowing exactly which strategies apply to your situation – and that’s where expert guidance makes all the difference.

The best tax strategies don’t happen by accident. If you want to stop overpaying in taxes and keep more of your hard-earned money, let’s talk.

Schedule a call today and let’s create a tax plan that works for you.

Schedule Call

Ryan Poirier

Certified Public Accountant
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