Are you looking for a tax consultant for your dental practice? Do you understand the necessity of tax planning and preparation for your business? Even better—are you aware of the tax savings you’re missing out on? Tax Consultant Craig Cody joins us to talk about financial planning & taxes.
Craig Cody is a Certified Public Accountant (CPA) and the President & Founder of Craig Cody & Company. He was formerly a cop with the NYPD and ended his career as a Lieutenant after 17 years on the force. Listen to this episode for some expert advice—and maybe a few cop stories.
Outline of This Episode
- [2:33] From law enforcement to tax consultant
- [5:03] Strategies to manage tax savings
- [12:02] What can a CPA do for you?
- [14:20] Dentists should NOT double as bookkeepers
- [16:05] Craig and I share a cop story or two
- [22:30] Connect with Craig Cody & Company
From law enforcement to tax consultant
Craig was an Economics major in college, but after 3 years he left to join his dad at the NYPD. After 17 years on the force, he decided it was time to move into something else. He wasn’t unhappy, he loved his time with the NYPD, but it was the right move. Now, his son is with the NYPD, already at the rank of sergeant.
Many cops transition to lawyers when they retire from the force. But Craig Cody decided to go into financial planning. He thought getting his CPA would be the ideal way to stand out. But in the process, he fell in love with taxes and tax planning. Now he runs a firm that specializes in helping YOUR business keep more of what you make. Sometimes, $20,000, $30,000, or $40,000 a year.
What is the biggest tax mistake you can make?
Craig points out that when we shop for a vehicle we do a lot of research. When we plan a vacation we research where we want to go. But what research went into the entity you chose for your business? Do you communicate with your CPA? Do you HAVE a CPA? Your CPA isn’t an expense. With the right tax consultant, they can be an income item. Instead of worrying about what you have to pay, they can help you think about what you can save.
Maximize the legal deductions you’re allowed to take
Before even forming a practice you should consult with your attorney and a CPA to decide which entity to operate under (LLC, S Corp, partnership, etc.). Choosing the wrong one could mean you lose out on the Qualified Business Income (QBI) deduction—a 20% deduction.
What about deductions for a home office? Or a home gym (if you have a pool, gym equipment, etc.)? Do you have a medical expense reimbursement plan? Craig helps his clients maximize the legal deductions they’re allowed to take and keep more money in the business.
Once you hit the Married Filing Jointly income limit of $315,000 of taxable income, that 20% deduction starts to phase out. But if you plan properly, you can keep more of that deduction. Keep listening to hear more of Craig’s tips.
Why Dentists NEED a tax consultant
I learned early on that I should’ve talked with a consultant before even opening a bank account. Once I hired a CPA, my bank of choice wouldn’t give them access. Craig agrees—it’s important to start conversing with a CPA early. Not only can they help you avoid costly tax errors, but they can help you build a tax plan, go through your P&L and balance sheet, and even help with monthly bookkeeping.
Craig admits when he sees the books of a dentist who’s handled it themselves, he prays they’re a better dentist than they are bookkeepers. Even if they think they’re correct, they’re typically not even close. Craig states: “There is a reason they went to dental school—and it wasn’t to do accounting.”
Dentists often breathe a huge sigh of relief when Craig & Company step in and help take over their books and tax preparation. The value they offer is insurmountable. Listen to the whole episode to learn more about WHY you need a tax consultant. Craig and I also throw in some hilarious cop stories you don’t want to miss!
Connect With Craig Cody
- Get Craig’s FREE Book
- Craig Cody & Company
- Craig’s LinkedIn Profile
- The Progressive Dentist Podcast
- Call at 516-869-4051