Running a clinic is not just about perfect margins and calm chairside manner. It is a business with tight schedules, regulated fees, expensive kit and rising costs. That is why accountants for dental practices play a bigger part in success than many people expect. From structuring drawings and associates’ pay to smoothing cashflow and planning for new equipment, the right support helps owners protect profit, free up time and keep stress in check.
Costs are still sticky – Consumer Prices Index (CPI) inflation sat at 3.8% in July 2025 – which is a reminder that pricing, wages and supplies need active management, not an annual tidy-up (Office for National Statistics (ONS), 2025). On the tax side, the VAT registration threshold remains £90,000, which matters for private work and facial aesthetics, while major kit can still qualify for the £1m annual investment allowance (AIA), giving immediate relief on qualifying plant and machinery (HMRC, 2024 and 2023). Put simply, the rulebook changes, the environment moves and dental practices that treat finance as an ongoing process do better. This post sets out how we help clinics stay profitable, well funded and compliant, with practical tips you can apply this quarter
Why sector knowledge matters
Dentistry has its own rhythms. You have associates on different contracts, labs and consumables that don’t always follow neat patterns, and seasonality around school holidays. A generalist might miss what is normal for a surgery and what is a red flag. We benchmark chair-time utilisation, fee mix and wage ratios against what we see across the sector, then flag actions that lift margin without compromising care. It is not about squeezing minutes – it is about matching costs and capacity so you earn a fair return for the expertise you provide.
How dental practices benefit from specialist accounting
Specialist support turns compliance into value. Your numbers should explain where profit really comes from, which treatments subsidise others and how to fund the next upgrade. When we build a monthly pack, we highlight unit economics per chair and per session, so owners can make quick calls on pricing, scheduling and staffing. Dental practices that look at these numbers regularly tend to spot issues earlier and avoid cash dips later.
Tax planning that suits how clinics operate
There is rarely one perfect structure. We model options for principal pay, associates and any related companies so you can choose what fits your goals.
- Profit extraction: Use a blend of salary and dividends that suits cash needs and pension planning.
- Associates’ agreements: Keep terms, accounting periods and self-billing rules clear to avoid disputes and messy reconciliations.
- Capital allowances: Plan the timing of scanners, chairs and sterilisers so major purchases land when tax relief is most helpful – AIA at £1m remains available on qualifying plant and machinery (HMRC, 2023).
- VAT watch: The VAT registration threshold for most businesses is currently £90,000 in a rolling 12 months. Private dentistry and facial aesthetics income can push you towards that line faster than you think, so regular checks are essential (HMRC, 2024).
Cashflow, pricing and chair time
Cashflow is the heartbeat of a clinic. Even profitable surgeries can run short if lab bills, wages and finance payments bunch up.
- Chair-time mix: Identify low-margin slots and consider moving them to quieter periods.
- Deposits and DNAs: Tighten deposit policies and reminders to reduce no-shows without harming patient relationships.
- Stock control: Small changes to ordering intervals can free surprising amounts of cash without risking shortages.
- Payment options: Offer simple finance or staged payments on higher-value treatment plans to smooth inflows.
We also set targets for debtor days and run soft credit checks for higher-value cases. A small tweak to acceptance criteria can remove a lot of chasing.
Financing kit, refurbishments and growth
Modern dentistry is capital heavy. Digital scanners, imaging and patient lounge refits are investments that pay off when they are planned, priced and funded correctly. Accountants for dental practices can help with:
- Project budgeting: Cost the whole job, not just the sticker price – installation, training, downtime, interest and maintenance.
- Funding mix: Blend cash, hire purchase and term loans so repayments line up with expected gross profit per chair.
- Return-on-investment (ROI) tracking: After install, compare expected uplift in case acceptance and chair-time utilisation with actuals. If the numbers lag, adjust pricing or workflows early.
Because AIA accelerates relief on qualifying assets, you can recover part of the cost quickly through tax – but timing and eligibility matter, so we build this into the plan (HMRC, 2023).
Compliance without the headache
No one opens a clinic for the paperwork. We keep you on top of deadlines, filings and record-keeping so you avoid penalties and keep focus where it belongs.
- Year-end and tax returns: Close the year promptly so drawings and dividends decisions are made with up-to-date figures.
- Payroll and pensions: Keep contracts and hours current so auto-enrolment and holiday pay stay correct.
- VAT checks: If you are near the threshold, we monitor rolling turnover and advise on the impact of extra private work (HMRC, 2024).
- Management accounts: Produce short, readable packs each month with actions, not just charts.
If you want to see how we structure this for clients, have a look at how we work and the services we offer at our site.
Data you can use on Monday morning
The point of numbers is better decisions. Inflation remains higher than the 2% target, which means costs are still creeping and patients’ budgets are tighter than a few years ago. CPI rose by 3.8% in the 12 months to July 2025, and services inflation was 5.0% – both relevant for staff costs and clinic pricing (ONS, 2025). Here is how we turn that into actions.
- Fee reviews: Build small, frequent increases into the plan rather than large, rare hikes.
- Supplier negotiation: Use rolling spend data to secure discounts or consolidate orders.
- Session planning: Shift lower-margin work to associate time and protect high-value slots for principals.
- Break-even per chair: Know the number you must hit each day. If you fall short, adjust the rota or patient flow that week.
You do not need a 40-page deck. You need a one-pager that drives decisions – which is exactly what we produce for our dental clients. If you are new to us, start with a review and we will show you quick wins. You can also read more about our sector approach to dentists and facial aesthetics on our website.
Accountants for dental practices: Ready to make the numbers work harder?
Strong clinical skills deserve strong business results. With sector-specific accounting, dental practices can keep cashflow predictable, fund modern kit with confidence and stay on top of tax without drama. The mix is simple: clear targets, regular reviews and rapid tweaks when the data says so.
If you would like practical, ongoing support – not just year-end paperwork – we are here to help. Book a chat and we will map out a plan for your clinic. We specialise in dentists and facial aesthetics, so we understand the quirks and the opportunities. Accountants for dental practices make sure you get the clarity, profit and time they deserve
