Why Dentists Must Review Practice Financials Quarterly in the US

Running a dental practice goes beyond fillings and floss. In today’s competitive healthcare landscape, reviewing your practice financials every quarter is just as important as caring for your patients. Not sure why? Let’s break it down.

Think Beyond the Chair: Why Financial Reviews Matter

Would you drive across the country without checking your gas gauge? Probably not. The same goes for your dental practice. Skipping regular financial check-ups can lead to cash flow issues, lost profits, or even debt.

By reviewing your financials every quarter, you can:

• Spot problems early – like rising expenses or declining revenue.
• Make informed decisions – based on real-time data, not assumptions.
• Adjust your goals – so you stay on track for long-term success.

What Should Dentists Look at in Their Financials?

Here’s the good news: you don’t have to be a CPA to make sense of your numbers. Start with these key financial reports:

• Profit and Loss Statement (P&L): Are you making money or losing it? This report shows income, costs, and expenses over time.
• Balance Sheet: Want to know what your practice is worth? This snapshot shows assets, liabilities, and equity.
• Cash Flow Statement: Do you have enough cash to keep operations running smoothly?

Don’t worry—most accounting software can generate these reports automatically.

Quarterly Reviews vs. Annual Reviews: What’s the Difference?

Many dentists wait until the end of the year to review their finances. By then, it might be too late to fix major issues. Reviewing your financials quarterly gives you the power to:

• Course correct immediately if something’s off.
• Identify seasonal trends in patient visits or expenses.
• Plan smarter for taxes, hiring, or new equipment purchases.

Think of quarterly reviews as regular dental cleanings—they prevent bigger problems down the road.

What Happens When You Don’t Review Your Financials?

Let’s say your practice is bustling with patients, but checks are bouncing and bills are piling up. That’s often a sign of poor cash flow management—something regular reviews would catch.

One dentist I spoke with thought his practice was thriving. After a quarterly review, he realized his hygiene department was losing money. A few small changes, and he turned it around in just three months.

Tips to Stay on Track

Not sure where to begin? Start small:

• Set a reminder on your calendar every three months.
• Meet with a dental-specific accountant or bookkeeper to review key numbers.
• Track your KPIs (key performance indicators), like production per hour or hygiene recall rates.

Even 30 minutes per quarter can make a big difference.

Final Thoughts

Owning a dental practice in the U.S. is both rewarding and challenging. But to build a financially healthy business, quarterly financial reviews are non-negotiable. They help you make smarter decisions, avoid nasty surprises, and keep your practice running like a well-oiled machine.

So, the next time you remind a patient to come in every six months—ask yourself, “When was the last time I checked in on my numbers?”