Client Successes

The client came to us operating a multi-owner, California C-Corporation medical practice with 3 shareholders and approximately 20 employees. The company had been working with a national CPA firm for over 15 years, a connection that was inherited from a previous practice restructuring. Despite the change in ownership, certain operational decisions remained the same for the sake of familiarity. Although the previous CPA firm managed the preparation of the annual corporate returns, much was left to be desired by the shareholders.

The shareholders agreed that one of them would handle accounting and financial tasks. However, due to time constraints, accounting was often six months behind, and the physician-owners were completely unaware of financial metrics other than bank account balances. Outside of a single touch point to complete the tax return preparation process, the practice would consult with their long-time CPA in December on equipment purchases and officer bonuses. The owners’ limited knowledge of tax strategy assumed these methods were the only options available to reduce tax liabilities. Unfortunately, December came, guidance was sought, and without any assistance the ‘financial shareholder had to estimate bonuses and asset purchases himself. Frustrated by the lack of responsiveness and support from their CPA, the owners made the prudent decision to seek out a referral from their healthcare attorney. The physicians were ready to see what other CPA firms had to offer their growing medical practice.

Rood & Dinis was presented with the opportunity to provide a financial health check to the shareholders. During this process, we uncovered significant tax findings and suggested an on-going service package to address their needs. The most important change involved delegating monthly accounting responsibilities to our firm. There were two primary goals behind this move. The first was to remove administrative responsibility from the ‘financial shareholder’ allowing him to redirect his valuable time and expertise toward patient care and Company growth.

The second goal involved supplying up-to-date monthly accounting packages with bank- ready financial statements and reconciliations to the shareholders. This was achieved by delegating accounting responsibilities to an internal staff member while leaving high level review and oversight to Rood & Dinis.

Within the first 6 months, we noticed a tremendous increase in the level of communication that appeared to be sought after all those years. In large part, this is due to our fixed fee arrangement that inherently creates a stronger relationship. Rood & Dinis responded to emails within 24 hours, met with shareholders both in-person and virtually, and proactively looked out for the medical group’s best interest. Having up-to-date financials in hand at year end allowed us to better understand the Company’s financial position, their needs and advise on the current year and future period decisions. The client couldn’t be any happier.