Nearly 80% of dental practices face cash flow challenges when expanding, and with inflation steadily increasing operational costs, staying financially sound during growth is no small feat.
When one forward-thinking dental group set their sights on a significant expansion, they knew they needed a strategy that wouldn’t just support their ambitions but would also minimize unnecessary tax burdens. That’s when they partnered with Engage Advisors to take their growth to the next level—efficiently, sustainably, and with their financial health intact.
The Challenge: Growth Without the Guesswork
Expanding a dental practice isn’t just about adding square footage or new chairs; it’s about having the financial stability to support that growth. This group wanted to secure their future while navigating the complexities of taxes, employee benefits, and reinvestment opportunities.
They needed more than generic advice—they needed a strategy built around their unique needs and goals.
Our Approach: Strategic Moves for Real Results
Here’s how we helped this dental group achieve sustainable growth:
- Cash Balance Pension Plan: Maximizing Savings and Benefits
A cash balance pension plan isn’t your typical retirement fund—it’s designed to do more. For this group, it offered game-changing advantages:
- Boosted Retirement Contributions: The practice owners contributed far more to their retirement than standard 401(k) limits allow, putting their long-term financial goals on the fast track.
- Tax Relief in Action: Every dollar contributed was tax-deductible, reducing their taxable income and keeping more money in their pockets.
- A Competitive Edge for Hiring: Enhanced benefits like this helped attract and retain the high-caliber staff they needed to support their expansion.
- Cost Segregation Analysis: Unearthing Immediate Savings
Think of cost segregation as a deep dive into the value of your property assets. By reclassifying certain building components into shorter depreciation schedules, we unlocked substantial financial benefits:
- Accelerated Depreciation Deductions: This strategy allowed the group to claim larger deductions sooner, lowering their taxable income when they needed it most.
- Improved Cash Flow: The additional tax savings provided critical liquidity, fueling their growth efforts without adding financial strain.
- Enhanced Planning Power: With a clear understanding of asset depreciation timelines, they could budget and forecast future investments with confidence.
The Results: More Than Just Savings
By aligning their goals with proven financial strategies, this dental group achieved:
- Higher Retained Earnings: Reduced tax liabilities allowed them to reinvest profits directly into the business.
- Effortless Expansion: Increased cash flow gave them the flexibility to grow without compromising financial stability.
- A Stronger Foundation: With enhanced retirement savings and a streamlined financial approach, they positioned themselves for sustained success.
Every dentist knows that growth doesn’t come from staying in your comfort zone—it takes intentional action and the right strategy. Taxes, benefits, and cash flow can either be hurdles or stepping stones—it’s all about how you approach them.
💡 “Don’t just work hard—work smart. Your practice deserves financial strategies as precise and impactful as the care you deliver every day.”
At Engage Advisors, we understand that being a dentist is more than just running a practice—it’s about building a legacy and ensuring long-term financial success. That’s why we craft tailored strategies designed specifically for dental professionals.
Whether it’s innovative retirement plans or in-depth cost analyses, we deliver solutions that make your finances work as hard as you do. When you choose us, you’re choosing expertise, precision, and a partner who understands the unique challenges of your field.
Contact Us! Let’s work together to create a plan that empowers your practice to thrive.