Fire Your CPA!
Yes, we’re serious. Fire your CPA.
Most healthcare and small business CPAs (maybe yours) have been trained to be very conservative. In our experience, conservative financial planning means missed opportunities. Instead of planning conservatively, consider a plan that minimizes risk and maximizes opportunity.
There is a big difference between the two.
If your practice is buying real estate a conservative CPA will often recommend your practice pay a higher down payment to minimize the monthly payment, lower the interest rate, and shorten the length of your financing. But financing is not just interest rate and term length. After that big down payment for a small interest rate adjustment what will your bank account look like? It’s possible your practice can get financing for the building with no money down and use the extra cash you would have used for the big down payment to purchase yet another building!
A conservative CPA might recommend increasing your monthly payments to get out of debt faster. If you can afford it—why not? The conservative strategy ignores your cash flow. We’ve demonstrated with our clients that a long-term financing strategy, (paying less monthly and using the extra monthly cash saved to invest back into the practice or into retirement accounts) can actually build wealth!
How can your practice minimize its risk but also maximize its opportunities? This is different for every practice. But a strictly conservative plan by a risk-averse CPA unfamiliar with healthcare lending will miss the opportunities every time. Before you finance a new building, an acquisition, an expansion, buy new equipment, or hire a new team, talk to MedTrust Capital Group. We are the healthcare practice financing experts with a long history of securing financing for medical, dental, optometric, veterinarian, and other types of healthcare practices.
You might wind up firing your CPA.