As the summer heats up, it’s not just a good time for vacations, it’s also the perfect time to check in on your dental practice’s financial health. Mid-year tax planning can help you avoid surprises at year-end and give you time to make strategic decisions that impact your bottom line.

Look at the Numbers Now, Not in December

Too often, dentists wait until the end of the year – or worse, tax season – to review their financial performance. But by now, you’ve got six months of data that can tell a meaningful story about how the rest of the year might unfold. Are collections on track? Are expenses creeping up? Did you invest in new equipment or hire additional staff?

This is the time to sit down and compare your actual year-to-date performance against your projections. If you’re tracking ahead, it may be a good time to consider purchasing equipment, increasing retirement plan contributions, or planning charitable donations. If you’re falling behind, you still have time to course-correct.

Estimate Your Tax Liability

Based on your current earnings, we can help you estimate what your tax liability might look like by year-end. This can be a critical step in determining whether to adjust your quarterly tax payments to avoid underpayment penalties or whether there’s room to invest more in your practice or your future.

Take Advantage of Tax-Saving Opportunities

Mid-year planning allows time to explore tax-saving strategies tailored to your practice. These might include:

• Section 179 deductions for equipment purchases
• Maximizing retirement contributions through a 401(k), SEP IRA, or defined benefit plan
• Health savings accounts (HSAs) or Flexible Spending Accounts (FSAs)
• Reviewing entity structure to determine if it’s still the most tax-efficient option
• Hiring family members for legitimate business roles to reduce taxable income

Evaluate Overhead and Profit Margins

Often our dental clients are so focused on patient care that they don’t realize how much their overhead is eating into profits. Mid-year is a good time to review vendor contracts, supply costs, and staffing efficiency. Small tweaks now can lead to big savings by year-end.

Don’t Go It Alone

Tax laws change frequently, and every practice is unique. The best way to take advantage of mid-year planning is to reach out to us to gain a solid understanding of the challenges and opportunities specific to your field.

Let’s Plan Ahead Together

Mid-year is more than just a checkpoint, it’s a chance to proactively manage your practice’s financial success. If you haven’t yet scheduled a mid-year review, now is the time. Your future self – and your bottom line – will thank you.