Running a profitable practice is about more than strong production and efficient systems. Without financial discipline and proactive tax planning, too many doctors lose their hard-earned income to preventable expenses and missed deductions.
Kiera Dent sat down with Derick, a dental CPA and financial strategist, to discuss the exact steps practices should be taking right now to build long-term financial health.
Why Taxes Should Be a Strategic Conversation, Not a Last-Minute One
Most practice owners wait until tax season to start thinking about taxes. By then, it's too late. The biggest tax wins happen through planning, not reacting. Derick shared that some clients save tens of thousands of dollars per year simply by structuring their expenses and retirement contributions more strategically.
Key Takeaways from the Conversation:
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Use your business structure wisely. Are you maximizing your S Corp or LLC status? Too many dentists are set up incorrectly for their income level.
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Pre-plan your taxes quarterly. Don’t let your CPA only file your return. They should meet with you at least quarterly to make proactive adjustments based on how the year is going.
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Treat your finances like a business, not a hobby. Know your profit margins, track your spending, and make intentional decisions about big purchases.
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Consider a 501(c)(3) or defined benefit plan if you are earning over a certain threshold. These tools can dramatically reduce tax liability while also creating community or retirement benefits.
The Discipline of Long-Term Profitability
Both Kiera and Derick emphasized that profitability isn't just about production. It’s about what you keep. A practice producing $2 million can still feel broke without financial structure. Many doctors think they have a tax problem, but what they really have is a planning problem.
This episode wasn’t about fancy loopholes. It was about building the financial muscle that allows you to save more, invest wisely, and reduce tax stress year after year.
What to Do Next
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Review your current tax plan with a dental-specific CPA.
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Build a system to track overhead, profits, and savings monthly.
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Start treating taxes as a leadership responsibility, not just a backend chore.
The smartest doctors aren’t just clinical experts. They also know how to make their money work for them.
Want help making this a reality? Schedule a free Practice Assessment with the Dental A Team and get a custom step-by-step plan to create a thriving practice.
Want to learn more about how you can increase your profit using a tax strategy? Check out our podcast!
Last updated: July 2025
Written by Jacintha Ham, Dental A Team