Updating an existing facility or buying or building a new one is an exciting time in any business’s journey. Taking the time to understand the many facets of this venture can save you time, money, customers, taxes, and more.
Here are some considerations as you get started…
What’s your short- and long-term business strategy and goals, and how will the upgraded/new facility support them?
Are you looking for a facelift and to maintain the status quo or do you have plans to improve service and productivity, accommodate more clients, or expand your offerings? How does this align with and support your exit plan?
How can a renovation or new facility enhance your brand and reputation?
The customer experience you create and deliver can be enhanced with the right design and execution. For example, if you want to allow clients to visually or physically accompany pets throughout visits, an open-concept design or glass walls may be in your future.
What’s your budget?
Developing a budget enables you to set realistic parameters for your project and helps you prioritize where to invest so you get the biggest return on investment. It also helps when it comes to determining the best way to finance and pay for the upgrade.
What’s on your wish list?
Maybe you’ve always wanted a triage area or more on-site diagnostic capabilities. Perhaps you want your passion for sustainability and the environment reflected in your facility (i.e., covered parking spaces with solar panels powering your facility). Is it time to upgrade your technology infrastructure to promote paperless transactions and communications, while allowing pet owners to work while waiting?
Is talent recruitment and retention a priority?
Consider how a renovation can enhance your employee experience with upgrades like lockers to store personal items; a break room that really provides a break; an outdoor mental health space; or a private nursing area.
Be prepared to consider a lot of details.
How can your facility design foster patient flow from arrival through treatment and payment? Do you need a triage area with easy access to a lab and x-rays? Do your pharmacy and retail items need to be located by where customers checkout and pay? How about the outside of the facility – from parking to walkways and awnings? What about isolation areas, lighting, flooring, noise control, ventilation, storage, security, cleaning, and sanitation requirements? Patient flow, functionality, and safety should be top of mind.
How will it impact your clients and business today?
Can you still conduct business while a renovation is taking place? Will the number of clients you treat, the services you provide, or your revenue be affected?
Should you engage professionals who specialize in renovating or building veterinary facilities?
Companies and people who find and oversee the renovation or building of veterinary facilities know the ins and outs, from regulations, zoning, and codes to location, planning, design, and execution. Talking to these professionals can help you better understand everything involved in a renovation, purchase, or build. Engaging them frees you up to continue focusing on your practice while having a partner to help you navigate the process.
Do you know the tax strategies, credits, deductions, and options are available?
Your renovations and improvements may qualify for Section 179D and Section 179 deductions for things like furniture and equipment; computers and software; machinery and medical equipment; security and HVAC systems; roofs; fire protection systems; and more. There are efficient energy deductions and solar incentives available to consider as well. For example, are you contemplating installing electric car chargers at your facility? You could benefit from certain tax incentives in the year of installation. Also, employing cost segregation can make a difference when it comes to writing off costs. Some elements of your renovations and improvements can be eligible for accelerated depreciation methods so a cost segregation could lead to accelerated tax benefits and increased cash flow.
If you’re considering renovations, moving, or building a new facility, please remember, RBT CPAs professionals are available to help you with budget creation and tracking; tax strategy; and more. We are also available to support all of your accounting, tax, audit, and advisory needs. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 55 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.
RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.