R — Rigorously track
Dental practice finances: track every dollar, without the spreadsheets
You can’t fix what you can’t see. The first part of the Rich Dentist System gives you a clear, monthly picture of your practice and personal money, so every other decision gets easier.
Why tracking comes first
Many dentists collect well into six figures and still can’t say where the money went. Overhead creeps up, personal spending mixes with practice spending, and the tax return becomes the only financial report of the year. Accurate books are also the base of every legal tax strategy: deductions, retirement plans and timing decisions all depend on numbers you can trust.
Your one-page money plan
Instead of a long business plan, the system starts with a one-page money plan you can draft in about 30 minutes. It answers seven questions:
- How much do I want to take home this year?
- What is my total practice overhead?
- What collections will reach that goal?
- How much will current patients produce?
- How many new patients do I need, and at what average fee?
- Which three marketing efforts will bring them in?
- Which three improvements will help keep patients and earn referrals?
What we track every month
- Collections and production by provider and by month
- Overhead by category: staff, supplies, lab fees, rent, marketing
- Cash flow: what came in, what went out and what is left
- Personal spending and savings, kept separate from the practice
- Debt balances and how fast they are falling
How Less Tax for Dentists sets it up
We connect your accounting software, bank accounts and practice management system so reports are available on demand, then turn your one-page plan into a simple dashboard you can check any time. You see the numbers that matter, without doing the bookkeeping yourself.
Learn it from Jay in person
Jay teaches this topic to dentists at meetings and study clubs. See the course: Dental Office Accounting Simplified.
Frequently asked questions
What bookkeeping does a dental practice need?
Monthly bookkeeping that separates practice and personal spending, groups overhead into clear categories and reconciles the bank with the practice management system. This is the base of every tax strategy.
How often should a dentist check practice finances?
Monthly. A short monthly look at collections, overhead and cash flow catches problems early and keeps your tax planning on track.
Do I need to change my practice management software?
No. We work with the accounting and practice management software you already use and connect it so reports are ready when you need them.
The rest of the system
Pay the legal minimum in tax
Plan taxes all year with strategies that fit US tax law, instead of finding out what you owe in April.
Eliminate bad debt
Pay off the debt that drains cash flow, then redirect those payments into savings and investments.
Build wealth with a plan
Grow wealth steadily, in line with your goals and risk tolerance, with advice you pay for directly.
Put this part of the system to work
Book a free consultation and see what it could mean for your practice.