Dental Practice: Profit First in 2022

By Dr. Addison Killeen

January 4, 2022

Profitability System

Since we just ended 2021, maybe you’ve looked at your profitability and thought, “Hmm, that’s not what I wanted.” Or maybe you thought, “Where the Fu@! Is my profit?!?!” Dental practice profit is based on a variety of factors, as you well know.

Inside DSN, this is a HOT topic, especially when everyone sees their year-end numbers. Recently, I have had a ton of people asking all the time about profit first and how we do it. In our DSI Elite Practice Mastermind we actually have about 50% of folks who use it, and it’s awesome to do. I’ll share a key document that I created and give to Mastermind members who are switching to this system.

(If you need a primer about Profit First, you can watch the webinar on it HERE with Drs. Costes, Green and myself.)

 

 

I used the program Lucidchart to create the graphic above, so if you’re looking to replicate it for your accountant, bookkeeper or banker you might find that useful. (Or copy and change it in paint.)

In the example above, I set the ‘overhead’ at 55%….basically a tight budget, but not yet ‘Black Belt’ range. Next, set the ‘Doctor Pay’ account to be what you want to be your W-2 wages. In the scenario above, this doctor was a single-doc location, and they wanted to take 20% as W-2 pay, leaving 25% into the separate profit/tax/debt account. In that 3rd split, you always need to remember to pay taxes (let’s assume 40%), and then the other two parts are debt payments and profit.

Once you move money into all those accounts, then you get to TAKE PROFIT!!! Woohoo!

 

In Summary

Hopefully that turns out to be significant, but if not, we’re always here to help you set your goals and work towards making your dental practice profit bigger.

So, we hope you set up 2022 to be your BEST year yet…with enough profit to make it that way!

If you aren’t a member check out the 45 Day Free Trial of Dental Success Network.

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