The Tax Account: Making April a Non-Event

No More Tax Surprises

If tax season fills you with anxiety, you’re not alone.
Many dentists dread April because they never know what they’ll owe — or where they’ll find it.

“When you don’t plan for taxes, you turn a known expense into a yearly crisis,” I wrote in Profit First for Dentists.

The Tax Account ends that cycle once and for all.

What the Tax Account Does

The Tax Account is a simple concept with powerful results.
Each week, you set aside a percentage of your income into a separate account reserved exclusively for taxes.

That money is no longer part of your operating funds — it’s spoken for.

Come April, you’ll have exactly what you need waiting for you.

“When tax season arrives, you’ll feel calm instead of panicked — prepared instead of pressured.”

How Much to Allocate

Every practice is different, but I recommend starting with 15% of total collections in your Tax Account.
If your accountant gives you a different estimate, adjust your percentage accordingly.

The key is consistency — weekly deposits keep the account healthy and predictable.

Remove Temptation

Keep your Tax Account at a separate bank if possible, so you’re not tempted to dip into it.
This small separation creates accountability and protects you from “robbing Peter to pay Paul.”

“Out of sight, out of mind — and out of trouble,” I wrote.

Final Thought

Your Tax Account is peace in a bank account.
No more scrambling, no more surprises. Just steady, stress-free preparation.

Learn how to set up and manage your Tax Account in Chapter 8 of Profit First for Dentists or visit ProfitFirstDentist.com .