The Mid-Year Financial and Tax Checkup Every Dental Practice Should Run Before Q3
- Spiro Leunes
- Jun 28
- 3 min read
Updated: 2 days ago
By Spiro Leunes, CPA | CEO, MRL Advisory Group – New Jersey and New York Dental CPAs
Most dentists only think about taxes in April. That’s exactly why they overpay.
By filing time, the game is over. Every decision that could have cut your tax bill has already been made. You’re no longer planning—you’re just reporting history.
The most profitable dental practices treat July like a strategic reset. With six months left, you still have time to move the needle on collections, profitability, and taxes.
Here’s the exact mid-year review every practice owner needs to run before Q3.
Start With Your First Six Months
Pull your P&L through June and compare it to last year. Then ask the hard questions:
Are collections truly ahead, or just production?
Has overhead crept up?
Is the extra work dropping to the bottom line?
If collections are up, where’s the cash?
Too many practices feel busier than ever while earning less. Rising staff costs, lab fees, supplies, and shrinking PPO reimbursements quietly erode profits. July is when you can still fix it.
Recalculate Your Estimated Taxes Now
Your Q3 federal estimate is due September 15.
Don’t assume last year’s numbers still work. If you’re outperforming, your estimates are probably too low—setting up a painful bill and penalties next April. If things slowed, you’re likely overpaying and starving the practice of cash.
Run a mid-year projection. Know exactly where you stand and adjust while it still matters. That’s real tax planning.
Buy Equipment That Makes Business Sense—Not Just Tax Sense
Stop the December panic purchases. Never spend a dollar just to save thirty-five cents in taxes.
Buy equipment because it improves care, speeds procedures, or strengthens your practice. The tax benefit is the bonus.
Current rules still support 100% bonus depreciation and Section 179. Evaluate CBCTs, scanners, operatories, or tech upgrades now—not December 28.
New Jersey and New York dentists: State rules don’t always match federal. Model the full picture before buying.
Maximize Retirement Planning While You Still Can
Your retirement plan is one of the most powerful tax tools available. SEP-IRA, Safe Harbor 401(k), profit-sharing, or cash balance—planning in July gives you flexibility. Waiting until Q4 limits your options.
Pressure-Test Your Overhead
Revenue gets attention. Overhead determines what you keep.
Review the expenses that drift upward: payroll, supplies, lab fees, merchant fees, software, marketing. Spot the trends now and you have six months to correct them.
Review and Adjust Your Fee Schedule
If your fees haven’t moved in years while costs and PPO pressure have increased, you’re losing ground. A smart adjustment can boost profit more than adding several new patients.
Re-evaluate Your PPO Participation
Summer is the time to review insurance contracts. Notice periods matter. Decisions made in July can take effect January 1. Decisions made in December usually can’t. If a plan isn’t profitable, put it on the agenda now.
The Bottom Line
Highly successful dental practices don’t win with one big move. They win by making dozens of smart decisions before small problems become expensive ones.
Review the numbers. Update projections. Buy intentionally. Maximize retirement. Control overhead. Adjust fees. Reassess PPOs.
When April comes, your tax return won’t be a surprise. It will report the results of the better year you built this summer.