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Gathering Data for the Self Assessment

business accounts business growth dental practice growth dental practice ownership dental practice profitability profit and loss Jul 29, 2024

With Profit First for Dentists, committing to the self-assessment means you’re ready to face the truth about your financial situation. Are you prepared?

This assessment will show you how much money came into your business and how much went out over the past 12 months. Here’s how to get started:

Step 1: Gather Your Data

Collecting all the necessary data upfront is crucial. If you try to gather information as you go, you'll likely get frustrated and give up. It will also take much longer to complete the assessment.

Here’s what you need:

- Profit and Loss statement for the previous calendar year

- Balance Sheet for the same period

- Tax returns for the same year

- Payroll reports for the same year

- All business loan statements for the same year

- Business credit card statements for the same year

Step 2: Do the Math

  1. Loan Payments: Add up all loan payments for the calendar year and write down the total.
  2. Credit Card Charges: Ensure all charges are entered into your accounting software and reconciled like a bank account.
  3. Payroll: If you pay yourself via payroll, review the payroll report for your earnings. Write down your net pay plus any benefits the company paid on your behalf. This is your total take-home pay.
  4. Taxes: Write down the total taxes withheld from your paycheck for the year and the total taxes the company paid on your behalf.
  5. Owner Draws/Distributions: Check all documents and accounts for a total of any owner draws or distributions you took, as well as any quarterly tax deposits or taxes paid on your tax return.

Step 3: Breathe

Take a deep breath. Next week, I’ll explain what to do with these numbers to complete your self-assessment. Don't miss the upcoming newsletter and blog post.

Congratulations on making it this far in the process! You're one step closer!

If you’re curious to learn more about balancing profit and growth, visit www.profitfirstdentist.com and tap the 'Free Resources' tab to download the first two chapters of my book for FREE!  Don't forget to subscribe to my YouTube channel for all the latest tips and financial strategies for managing the business side of a dental practice.  

 

USA:

-Barb Stackhouse, RDH, M.ED.

Mastery Profit First Professional

"I’m Barb Stackhouse, author of Profit First for Dentists. You might recognize me as the professional behind the Profit First approach for dental practices. I’m passionate about helping dentists implement this effective cash flow system, which is why I wrote the book. My goal is for more dentists to read it and integrate this system into their practices because it genuinely works." 

Canada:

-April Stroink, BComm, RHU, EPC, PFP

Advanced Profit First Professional

With over 25 years of financial expertise, April Stroink helps in transforming the financial health of dental practices across Canada. As an experienced Profit First coach, April is committed to helping you increase your profits, optimize your cash flow, and achieve financial peace. She believes that your business should enrich your life—enabling you to create the life and business of your dreams without compromise.

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