One of the most difficult decisions associated with owning and running a dental practice is whether to buy or lease heavy dental equipment. That is to say, the decision whether to acquire vital equipment is not difficult; no dental practice will last long if does not offer its patients the most up-to-date equipment. Rather, the tough part is deciding whether to own the equipment outright, or to rent it. There are many factors that go into making the decision, and a dental CPA from Reliance Consulting, LLC, can conduct a buy versus lease analysis on your behalf to help clarify the benefits of either course of action.
Because no two dental practices are exactly alike, it is crucial that your dental CPA from Reliance delve deeply into the characteristics that give your dental practice its unique identity during the course of any financial analysis, including a buy versus lease analysis. This information will help determine a number of things, including whether your practice would be better served financially in the short term and long term to lease, rather than to buy. In many cases, buying makes the most sense, simply because of the tax benefits the business can take advantage of after purchasing business-related equipment or making business improvements. On the other hand, buying major equipment is making a long-term commitment to that equipment, and every dental practice management consultant knows that technological advances provide bigger and better equipment every year. One way to combat that is to conceive a re-sell plan, complete with an anticipated re-sell price, providing a measure of cost certainty over the long term while still taking advantage of the tax laws related to depreciation.
If you are weighing your options about dental equipment or need help breaking down a lease, and want a professional dental CPA to conduct a buy versus lease analysis, or would like to know the difference between an operating lease and a capital lease, contact Reliance Consulting today. We are dental practice management experts, and we want to be your dental practice consultant.