Your Year-End Financial Checkup: Five Things to Review

Running a dental practice means wearing two hats. You care for patients, but you may also manage payroll, equipment, debt, and a growing business. Even if you work as an associate, your income and financial needs can change quickly. Before the year ends, take time to make sure your finances are keeping up.

1. Look at Your Practice's Financial Health

If you own a practice, review your revenue, expenses, and cash flow with your accountant or bookkeeper. Are staffing, supplies, lab fees, or equipment costs growing faster than collections? Do you have enough cash set aside for slower months or a major repair? A simple review can help you spot issues before they become bigger problems.

2. Review Your Tax Plan Before December 31

Practice owners may have more tax planning choices than employed dentists, but they also face more moving parts. Ask your CPA whether estimated taxes, retirement contributions, equipment purchases, and business expenses are on track. Don't buy something only to get a deduction. Make sure the expense makes sense for your practice first.

3. Check Your Retirement Savings

Your practice may be a valuable asset, but it shouldn't be your only retirement plan. Review what you're saving outside the business. If you have a 401(k), SEP IRA, or another retirement plan, ask your advisor whether your contributions and plan design still fit your goals. Associates should review employer plans and any matching contributions too.

4. Protect Both Your Family and Your Practice

If you have a spouse, children, a mortgage, or practice loans, consider whether your life insurance still fits those obligations. Practice owners should also review business coverage and plans for an unexpected absence. Would the practice be able to pay rent, staff, and other bills if you couldn't work for a period of time?

5. Revisit Your Disability Insurance

Your hands, back, vision, and ability to perform procedures are central to your livelihood. If your income has increased since you purchased your policy, your monthly disability benefit may need a review. Some policies offer options to increase coverage without new medical underwriting, subject to their terms and deadlines. We can help you check what your policy allows.

A Small Review Can Prevent a Big Surprise

You don't need to tackle all five items in one day. Choose the two areas that need the most attention and schedule time with the right advisor. A little work now can give you greater confidence heading into the new year.