Blog
Blog
Blog
IDOC actively shares industry-focused articles, blog posts, podcasts, videos and other thought leadership with our members and other optometric practitioners. Below, you will find links to our growing library of educational materials and multi-media assets written and created by IDOC's team of seasoned industry experts.
Nathan Hayes | 8/7/2020
ONE MORE REASON TO STAY FINANCIALLY CONSERVATIVE IN 2020 - TAXES

“I’m shockingly flush with cash. My checking account balance is fantastic.”

This isn’t what I expected to hear on the tail end of the most prolonged economic catastrophe of our lifetime. But many practices, after leaning out all their expenses during the shutdown and getting forgivable funds from the Paycheck Protection Program are actually feeling pretty good about their cash situation.

Now, I know that’s NOT the case for everyone, and many practices are still really struggling. But I’m writing today for those who are feeling quite recovered.

If that’s you, and your checking account balance is high, stay conservative. Not only because we don’t know what future waves of coronavirus look like, or whether a recession looms on the back end of all this. Not just because it’s not clear that the high capture rates and sharp recoveries many are experiencing will continue.

Be conservative because your 2020 tax bill will be very hard to forecast.

But we were shut down for two months! Yes, and most practices were able to dramatically reduce their expenses during the shutdown. And two and a half months of payroll were paid by the government – payroll expenses that as of now will not be deductible. And many practices have been incredibly busy, seeing year-over-year growth in June AND July.

Many practice might end the year with revenues down by only5% or 10%; some are even already ahead of last year. If that’s you and you also took PPP, while your revenues might be down slightly, your payroll costs may be over 20% lower. Flat revenues and reduced expenses mean you might actually be MORE profitable this year than last.

Ordinarily, business owners should review their quarterly estimated taxes when they review the prior year’s taxes with their CPA, and then have one more mid-year review to assess any changes for their end-of-year tax planning. This year, I think owners may want to squeeze one more review in just to be sure they’re saving enough to avoid an unwanted surprise in April 2021.

In closing, I’m very pleased and optimistic at the recovery many practices are making and the success of programs like the PPP at keeping practices whole. But as your practices recover and profits start flowing, remember that the government gets the first bite at your profits in taxes. Don’t assume that the pandemic means you’ll owe less in taxes next year.

Nathan Hayes
Director, Financial Services
Nathan Hayes joined IDOC with a solid background in the eye care industry and serves as IDOC’s Practice Finance Consultant. Before Prima launched in 2011, he spent five years in business development for Red Tray and HMI Buying Group. Nathan graduated from Vanderbilt University in three years, with a degree in Spanish and a minor in mathematics.

After graduating, he spent a year working abroad. During that time, he worked for two firms in San Jose, Costa Rica. He interned with Grupo Juridico de San Jose, working in environmental policy to protect a threatened parcel of land, then he worked as a project manager for a US-owned precision machining shop. Nathan then spent 6 months working with street children and orphans in Mexico.

Before getting into the healthcare industry, he was an Assistant Store Manager and completed the Corporate Training Program with Haverty’s Furniture Company in Atlanta, GA. Nathan and his wife Heather have a son, Daniel, and a daughter, Hannah. In his spare time, Nathan enjoys reading and outdoors activities - especially cycling and hiking.
 LinkedIn
Trending Blogs
 
 

12/2/2022 | Author: IDOC

Hayley Stewart, IDOC Financial Services Manager

The end of the year is quickly approaching, which means you are probably thinking about your practice’s bookkeeping and all the many year-end deadlines that are going to be here before you know it. One of those deadlines you... Read more



11/4/2022 | Author: Nathan Hayes

IDOC is excited to announce the first benchmark report for our new Books & Benchmark; Financial Statement Benchmarks are live.  With over 30 practices connected to the database, we’re now able to run benchmarks.  Let us share a couple of aspects of how we do benchmarks that... Read more


9/9/2022 | Author: Maddie Langston

 

If you are looking to increase the number of new patients at your practice, then your marketing strategy should include working on how to get noticed in local online search results. One powerful way to increase your visibility in local search is to optimize and maintain the... Read more


8/22/2022 | Author: Kelsey Garcia

So you created a Facebook and Instagram account for your practice, but now what? Coming up with post ideas can be overwhelming and can quickly leave your creative “well” feeling dry. By categorizing your posts into three main buckets, you can easily streamline the brainstorming... Read more


8/5/2022 | Author: Dr. Steve Vargo

As I type this, the news is dominated by concerns over the economy, including unease around inflation and a looming recession. This has practice owners understandably concerned and asking, “What should I expect, and how can I prepare?”

I’m not an economist, and I... Read more


7/22/2022 | Author: Nathan Hayes

Do you worry that your staff aren’t consistently doing the little things in your practice? Do you lose sleep because you just ‘don’t know’ what’s happening outside your lane?  Do you struggle to find the time to oversee things?

Let me suggest that... Read more


7/15/2022 | Author: Amy Alvarez

I think I would be hard pressed to find an independent practice owner who doesn’t understand the power that marketing has on their ability to attract patients to their practice. Keeping patients, new and existing, visiting the practice is an important part of a successful... Read more


7/8/2022 | Author: Lana Greene

I have never spoken to a practice with a zero patient-owned-frame (POF) percentage. I encourage practices to strive for less than 25% POF percentage at a minimum, and less than 15% for the best-in-class. You may see a slight increase year-over-year, which will happen when you sell quality... Read more


5/19/2022 | Author: Dr. Steve Vargo

As research for launching a new service called IDOC Specialty Services, I interviewed several industry experts of various specialties. At the end of each call, I asked everyone the same question: “What prevents more ODs from succeeding with a specialty?”

Their answers were insightful.... Read more