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From cashflow and spending reviews to lending, financial professionals in the dental space state this is the time of year to put good business practices in place. By Marina Williams
For many dental practices, the start of a new financial year brings with it the same resolution: become more organised financially. Yet one determined decision alone is rarely enough to improve financial performance. Rather, this depends on developing consistent habits—reviewing cashflow regularly, planning early, scrutinising spending and understanding exactly where the business stands financially.
“A focused planning meeting with your adviser allows you to take action to influence outcomes, turning compliance into strategy,” Megan Goodwin, partner in specialist medical services at accountant and wealth advisory firm BBB Partners, says.
Bite asked a panel of dental profession accountants and financial advisers for their best tips to practice owners to kickstart the new financial year and take greater control of the business side of dentistry.
1. Know where your cash is going
Cashflow visibility underpins almost every major financial decision within a dental practice from staffing and equipment purchases to tax planning and expansion, Keegan Du Preez, senior accountant at ECOVIS Clark Jacobs, says.
“Cash is king,” he says. “Whether your business is in its infancy, growth phase, or maturity, cashflow is critical to keeping operations running smoothly and avoiding unnecessary disruptions.”
Du Preez believes different stages of practice growth require different financial strategies, particularly around forecasting and expenditure planning. Increased visibility over cashflow then becomes increasingly important for managing larger financial decisions.
2. Have systems deliver usable data
Good financial decisions depend on accurate, up-to-date information, but Du Preez says many practices underestimate the role systems and workflows play in producing reliable data.
“Many practice management and accounting platforms are either outdated or not configured in a way that aligns with how modern businesses operate,” he says. “This can lead to more inefficiencies than solutions.
“Data is where the real value sits. It helps you make smarter business decisions and gives your accountant accurate numbers to work with.”
3. Make spending reviews a business routine
Rising operating costs mean practices need to take a more disciplined approach to expenditure, Dr Kevin Kok, practice owner of Melbourne’s Oryx Dental, says.
“In a climate of rising costs, conducting a full review of utilities, service and dental supply agreements is essential,” he says. “Locking in savings on these daily operational expenses directly benefits your bottom line.”
Dr Kok states practice owners should also understand the tax treatment of technology and equipment purchases, including depreciation and eligibility to claim certain assets in full.
Alexander Scott, co-owner of Broome Dental Practice, advises major spending decisions must be assessed through short business cases before approval.
In a climate of rising costs, conducting a full review of utilities, service and dental supply agreements is essential. Locking in savings on these daily operational expenses directly benefits your bottom line.
Dr Kevin Kok, practice owner, Oryx Dental
“We look at the financial impact and broader benefits to the practice, including clinical efficiency, patient experience and long-term practice value,” he says. “The process promotes critical thinking and ensures capital investment decisions are aligned with practice goals.”
4. Regularly review lending and business structures
As practices evolve, business structures and lending arrangements may also need to change.
“As income grows, understanding your structure is crucial for ongoing financial success,” Megan Goodwin says. “What works early in a career can become inefficient as profits rise.”
Lending and finance facilities should form part of that regular review process, Keegan Du Preez states, particularly as practices grow and financial needs change. “We generally recommend doing a review of your lending at least every couple of years,” he says. “Even small changes in interest rates or terms can make a meaningful difference over time.”
Goodwin says many dentists also underestimate the advantages available to them through profession-specific loan options.
“Dentist-specific lending policies can unlock higher loan-to-value ratios, remove the need for lenders mortgage insurance and offer more flexible terms,” she says. “When used strategically, these benefits can accelerate practice growth and fast-track personal wealth creation.”
5. Practise good financial habits early
According to Goodwin, a big mistake practices frequently make is leaving financial planning until the last few weeks of the financial year. Planning early can give practices more flexibility around purchases, tax decisions and cashflow management.
“This includes reviewing service fee agreements to ensure they reflect day-to-day operations and do not inadvertently create payroll tax risk,” she says.
Tax planning discussions with advisers are integrated into Broome Dental Practice’s broader business review process throughout the year, Alexander Scott says.
“We bring details of proposed or upcoming expenditure to these discussions to ensure purchases are structured and timed in the most tax-effective way,” he says. “Proactive collaboration with your accountant provides greater certainty and control over financial decision-making.”
6. Work with advisers who understand dentistry
Financial advice is most effective when advisers understand the realities of running a dental practice, according to Dr Kok.
“Engaging an accountant or adviser who specialises in healthcare is crucial for assessing your practice structure and ensuring your business is set up correctly,” he says.
Goodwin says advisers are most effective when practice owners remain actively involved in the financial side of the business rather than stepping away from it entirely.
“Typically, the highest-performing dental practices are led by owners who remain closely engaged with the practice’s financial performance, ask the right questions, collaborate effectively with their advisers and regularly review results to identify when a strategic pivot is needed,” she says.
