The practice, the corporation, and the plan.
Year-end, tax and planning for dental practices and dentistry professional corporations, from a chartered accountant who works with owner-dentists and associates.
Equipment, staff, and a corporation that has to be worth having.
A dental practice carries real capital costs, a payroll, and usually a professional corporation with a remuneration decision attached to it. Each of those interacts with the tax position.
We handle the year-end and both returns together, so equipment purchases, salary and dividends are decided in the same conversation.
What these businesses actually need.
Dentistry professional corporation
T2 and year-end, with equipment purchases and capital cost allowance timed against the year you need them.
Practice numbers
Production, overhead and associate splits reviewed, plus modelling on buy-in, expansion or equipment.
Practice books
Billings, insurer receipts, lab costs and supplies reconciled monthly.
Hygienists and staff
Payroll run and remitted, with associate arrangements documented properly.
The issues that come up most.
Equipment and fit-out
Chairs, imaging and leasehold improvements fall into different capital cost allowance classes, and the year you buy changes the deduction.
Associate arrangements
Whether an associate is an employee or a contractor affects payroll, GST/HST and what happens if the CRA reviews the practice.
Buy-in and practice value
Purchasing into a practice, or selling one, has structural tax consequences that are decided long before the transaction closes.
Three steps, no surprises.
Review the structure
Corporation, shareholdings and associate arrangements reviewed against how the practice runs.
Run the year
Books current, payroll compliant, tax reserve held and equipment decisions modelled before you commit.
File both returns
Corporate and personal returns prepared together with next year’s remuneration set.
The ones we get asked most.
Can I deduct new equipment right away?
Generally no. Chairs, imaging and fit-out are capital assets claimed through capital cost allowance over time, though the class and the purchase year make a real difference.
Are dental services GST/HST exempt?
Most basic dental services are exempt, while cosmetic procedures and some products are taxable. A practice with both needs its allocation documented.
Should I incorporate my practice?
If you consistently earn more than you draw, incorporation defers tax on the difference. Your provincial regulator’s rules on professional corporations apply as well.
How is buying into a practice taxed?
It depends on whether you buy shares or assets, and the structure affects both your position and the seller’s. It should be modelled before terms are agreed.
Can you work with my practice management software?
We work from your bookkeeping file. Production reports from practice software are useful context, and we will reconcile the two.
Licensed, certified, and accountable for it.
The bodies that license this practice, and the certifications behind the day-to-day work.
CPA Ontario
The provincial body that regulates Chartered Professional Accountants in Ontario.
EFILE certified
Certified by the Canada Revenue Agency to file returns electronically on behalf of clients.
Intuit ProAdvisor
Intuit certification covering QuickBooks Online setup, reconciliation and reporting.
QuickBooks Payroll
Intuit certification for running payroll, deductions and remittances inside QuickBooks.
In their words.
Aaron has done my personal taxes for six years and he’s the best. My files are sometimes complicated and I was not always the most organized client, yet he handles all of it without ever making me feel bad about the mess. He’s fast, he explains everything in plain English, and he always finds credits I would have missed.Shmuel Neft
Working with Aaron and his team, especially Anna, has been fantastic for both our camp operations and Prime Coat Painters. From complex contractor billings to seasonal accounts and corporate taxes, they handle everything with real attention to detail. If you need a reliable, top-tier accounting team for your business, I can’t recommend Aaron Herman CPA highly enough!Tzadi Zlotnick, Prime Coat Painters Inc.
I use him for personal and business accounting. He is absolutely phenomenal with his work and expertise. Thorough, reliable, dependable, and punctual with due dates. I’ve worked with many accountants previously and Aaron surpassed them all in everything on my list.Elior Zipori, Zipori Landscapes & Design
We have been using Aaron Herman CPA for about four years now and we are very happy with their services. Anna is especially great to work with. She is on the ball, always up to date, and gets back to you right away with any questions or concerns.Reuven Durbach
Very happy with Aaron’s service. He is very knowledgeable and professional. Very patient with all my questions, ready to answer and be with the client within a short period of time. All the accounting service is done in a timely manner.Artem Artemov, Rimland
Aaron is excellent! He responds quickly, explains everything clearly, and makes the whole tax process easy and stress-free. He is very knowledgeable and always helps find the best way to get everything done properly.Mai Edry
Aaron is an amazing accountant! He is very supportive and great at explaining the ins and outs of what was needed when expanding my business. I highly recommend Aaron and his team!Leah Lomiansky, Speech Volumes Therapy
He is knowledgeable, thorough and effective. He is very responsive and takes great care of his clients. I highly recommend him and his services!Rachel Danzinger, Learning Pods
Absolutely love Aaron and Anna. They are fantastic to work with, go above and beyond, and their communication and dedication is unsurpassed.Fat Cat Cookie Co.
Two people. Trusted with your year.
Aaron Herman
CPA, CA · Founder and Managing Partner
Aaron planned and prepared tax in public practice, then led financial reporting inside large Canadian companies. He is the person who answers when you call.
My number one priority is a happy client.
Anna Herman
Director of Finance and Operations
Anna runs the machinery behind the work: cloud accounting, CRA compliance, payroll and client onboarding. If your year-end is uneventful, that is Anna.
Order creates opportunity.
Tell us where your year stands.
Send the form and Aaron will come back to you directly. If it is easier, call. Someone here answers.