Ensure Proper Preparation for Your Practice

Running a successful dental practice requires more than just providing excellent patient care—it also involves maintaining strong financial records and tax compliance. One of the biggest financial challenges dentists may face is an IRS audit. While audits can be stressful, proper preparation can ensure a smooth process.

At PSS CPAs, we specialize in tax and financial services for dental professionals. Whether you’re looking for a dental CPA in FL or a financial advisor for dentists, our team can help you stay compliant and financially secure. Here’s how you can prepare your practice for an IRS audit.

1. Keep Detailed and Accurate Financial Records

The key to avoiding issues in an audit is proper documentation. The IRS will request detailed records, including:

• Income statements and expense reports.
• Payroll records for employees and independent contractors.
• Receipts for equipment purchases, office supplies, and marketing expenses.
• Tax filings and supporting documentation for deductions.

CPA firms in Miami Florida recommend maintaining records for at least three to seven years to ensure compliance with tax regulations.

2. Understand Common IRS Red Flags

Certain financial activities can increase your chances of being audited, including:

• Large Deductions: If your deductions exceed industry averages, the IRS may take a closer look.
• Employee Misclassification: Misclassifying employees as independent contractors can trigger an audit.
• High Cash Transactions: Dental practices that handle large amounts of cash must keep thorough records.
• Frequent Amended Returns or Late Filings: These can raise concerns about the accuracy of your financial reporting.

Working with a real estate CPA firm in Miami FL can help ensure your filings are accurate, especially if you own commercial property for your practice.

3. Review Your Tax Deductions Carefully

One of the most common reasons for audits is improper tax deductions. As experts in tax deductions for dentists, we help dental professionals correctly claim deductions such as:

• Equipment and technology purchases.
• Staff salaries, benefits, and training costs.
• Rent, utilities, and office expenses.
• Continuing education and licensing fees.

Consulting a CPA firm in Miami can help ensure all deductions are properly documented and compliant with tax laws.

4. Work with a CPA Who Understands Dentistry

A dental CPA in FL can help your practice stay compliant and navigate audits efficiently. Our team at PSS CPAs provides:

• Comprehensive tax planning.
• Financial consulting tailored to dental practices.
• IRS audit representation and support.

5. Respond to the Audit with Professional Guidance

If your practice is selected for an audit:

• Gather all requested documents promptly.
• Consult with a financial advisor for dentists to ensure accuracy.
• Respond professionally and provide only the necessary information.

By working with experienced CPA firms in Miami, you can reduce the stress of an audit and ensure a successful outcome.

Stay Audit-Ready with PSS CPAs

Preparation is key to handling an IRS audit smoothly. Whether you need assistance with bookkeeping, tax compliance, or financial planning, PSS CPAs is here to help.



Schedule a consultation today to safeguard your dental practice and ensure financial stability.