Take Control of Your Finances: Tax Strategy for Dentists

What if tax season didn’t feel like a surprise every year? Too often, dentists are left scrambling in April, blindsided by a tax bill they didn’t see coming. Kiera Dent and Derick Van Ness dive deep into how practice owners can shift from reactive tax filing to a proactive tax strategy and build real wealth in the process.

Why Most Dentists Stay in Financial Survival Mode

Many doctors rely too heavily on their CPAs to “just handle it,” but that approach can leave them in the dark. The truth is, without financial ownership and regular review, dentists unknowingly leave tens of thousands on the table every year.

Here’s what most practice owners are missing:

• A year-round tax strategy, not just end-of-year scrambling

• Clarity on financial reports and how to use them

• Understanding how much should be going to taxes vs. savings vs. profit

• Proactive cash flow planning that actually supports growth goals

Derick’s Framework for Financial Ownership

Derick shares the exact process he uses with Dental A Team clients to take control of their finances:

1. Quarterly Financial Reviews
   Review P&Ls, cash flow, and upcoming liabilities every 90 days.

2. Forecasting Taxes Early
   Stop waiting until April. Know your tax liability well in advance and plan for it monthly.

3. Compartmentalizing Income
   Divide income into strategic categories: taxes, profit, owner distributions, and operating expenses—so no category robs another.

4. Ask Better Questions
   Don’t ask your CPA “How much do I owe?” Ask:

   • “What strategies can I use to reduce my taxable income?”

   • “Are there legal deductions I’m not taking advantage of?”

From Tax Shock to Tax Strategy

Kiera and Derick emphasize that dentists can go from tax victims to tax strategists with the right systems and mindset. This shift doesn’t just save money, it provides confidence, peace of mind, and growth.

“We’ve seen clients go from $50K surprise tax bills to fully-funded strategies that support their life and business goals.”

Get Started: A Financial Check-In You Can Do Now

• Pull your last 3 months of P&Ls

• Review your distributions, tax payments, and profitability

• Schedule a meeting with your CPA or advisor with specific goals

• Set up a tax savings account and automate monthly contributions

Your financial success is too important to leave to chance. Dentists who take ownership of their finances consistently build more profitable practices, reduce stress, and create long-term wealth.

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