2025 Year-End Financial Checklist for Dentists to Prepare for 2026

November 13, 2025

As 2025 comes to an end, private dental practices have a valuable opportunity to reflect, recalibrate, and prepare for the year ahead.

The final stretch of the year is more than a time to close the books; it’s a strategic window to ensure every part of your professional and personal financial life is organized, accurate, and forward-looking.

Approaching this process thoughtfully prevents mistakes, improves efficiency, and gives you a strong start for 2026.

Before the calendar flips to January, take a careful look at your payroll system and compliance documentation. Even minor oversights can cause unnecessary frustration when issuing W-2s and 1099s. The best approach is to handle these details now, while the year’s data is still fresh.

Begin by reviewing:

• Employee information, including names, addresses, Social Security numbers, and year-to-date earnings.
  
  
• W-2 data for both current and former employees.
  
  
• Payroll tax deposits and filings to ensure all are complete and accurate.
  
  
• W-9 forms for all independent contractors who provided services this year.
  
  
• 1099-NEC forms for any contractors paid more than $600.
  
  
• Any new federal or state employment laws taking effect on January 1, 2026.
  
  

Taking care of this now ensures compliance and a tidy start for the new year.

A successful dental practice needs financial insight and accountability. Year-end is the ideal time to assess results and identify areas for improvement.

Start with your key financial statements:

• Review your profit and loss statement to evaluate profitability and expense distribution.
  
  
• Assess your cash flow reports to ensure liquidity and identify seasonal trends.
  
  
• Examine your balance sheet to gain a clear picture of your assets, liabilities, and retained earnings.
  
  

After reviewing your financials, turn to performance data that provides context beyond the numbers. These key performance indicators, or KPIs, help you measure the effectiveness of your systems and people.

Track and compare:

• Hygiene reappointment rates.
  
  
• Production per provider.
  
  
• Collection percentage.
  
  
• Overhead ratio.
  
  
• New patient growth and retention rates.
  
  

Consistently tracking these metrics shows your practice's health. Compare your results to industry benchmarks to identify strengths and weaknesses. Even small KPI gains can yield significant financial benefits over time.

This is also a good time to review your fee schedule. Many dentists delay raising UCR fees due to discomfort, but annual updates are best. Regular increases keep your revenue aligned with rising costs.

To guide this, review:

• Compare your most common procedures with current regional UCR data.
  
  
• Adjust for inflation and cost-of-living increases.
  
  
• Communicate fee changes clearly to your team so they can confidently discuss them with patients.
  
  

Patients value transparency, and an informed team can explain fee updates as part of quality care. Even modest increases support profitability and match industry standards.

Finish your financial check-up by reconciling accounts receivable, following up on overdue balances, reviewing expenses for potential tax deductions, and identifying equipment purchases to maximize tax efficiency in 2026.

• Review expense categories for potential tax deductions.
  
  
• Evaluate equipment purchases or upgrades that could qualify for Section 179 deductions.
  
  
• Plan cash flow for the first quarter of 2026, including any anticipated investments or expenses.
  
  

If you’ve had a particularly strong year, work with your CPA to determine if timing certain expenses or contributions before December 31 could reduce your taxable income.

3.  Personal Financial Planning

While focusing on your practice, remember to keep your personal financial goals in mind. The year-end is the last chance to maximize retirement savings and tax strategies for future stability.

For 2025, the IRS contribution limits are:

• 401(k): $23,500 employee contribution limit.
  
  
• Catch-up (age 50 and older): $7,500 additional contribution.
  
  
• Super catch-up (ages 60 to 63): $11,250 additional contribution, for a total possible deferral of $34,750.
  
  
• Combined 401(k) employee and employer maximum: $70,000.
  
  
• SEP IRA: the lesser of 25 percent of compensation or $70,000.
  
  
• SIMPLE IRA: $16,500, with a $3,500 catch-up for those age 50 and older.
  
  

Use these last weeks to review your retirement contributions and make any final deposits. Retirement savings build wealth while lowering taxes.

Also consider:

• Whether your current investment strategy still aligns with your long-term goals.
  
  
• Whether your insurance coverage reflects your current needs and risk exposure.
  
  
• Whether your cash reserves and emergency fund remain sufficient for unexpected expenses.
  
  

If you have a Defined Benefit or Cash Balance Plan, make required contributions before year-end to stay compliant and benefit from tax advantages.

Start organizing your records now to avoid stress in March. A little effort in December pays off later.

Gather and review:

• Vendor 1099s.
  
  
• Payroll summaries and end-of-year reports.
  
  
• Receipts for business and professional expenses, including continuing education and supplies.
  
  
• Documentation for charitable contributions.
  
  
• Updated mileage and vehicle logs.
  
  

If 2025 was an especially strong year, consider an extra estimated tax payment before December 31. This proactive step may help reduce penalties and maintain a balanced cash flow. Entering tax season prepared gives you and your CPA more time to strategize, rather than just filing.

Year-end planning should cover more than finances. Major life changes can affect legal or financial records. If you have moved, gotten married, divorced, or had a child, please update your information.

Take a moment to:

• Notify your CPA, attorney, and financial institutions of any changes in contact information or marital status.
  
  
• Review your will, trust, and powers of attorney to ensure they reflect your current wishes.
  
  
• Confirm that any newly acquired assets, such as property or investments, are properly titled and insured.
  
  
• Check that your beneficiaries on retirement accounts and life insurance are accurate.
  
  

A quick review of these details protects your family and legacy for the new year.

6.  Technology, Staffing, and Growth Planning for 2026

As the year comes to a close, focus on your practice’s growth. Reflect on what worked in 2025 and identify areas for improvement in 2026.

Ask yourself:

• Are your practice management and accounting systems up-to-date, secure, and efficient?
  
  
• Is your current team structure supporting both productivity and patient experience?
  
  
• Do you have opportunities to add new services or invest in technology that can improve care or efficiency?
  
  

After evaluating staff performance, create an actionable plan by scheduling individual meetings to discuss development goals, identifying necessary training resources, and planning recognition or growth initiatives for the coming year.

Your KPIs can also guide these discussions. Review operational data such as:

• Patient retention and reactivation rates.
  
  
• New patient growth and referral sources.
  
  
• Average daily production per provider.
  
  
• Schedule utilization and downtime percentages.
  
  

Compare these metrics to those of past years and industry benchmarks to determine if your systems support your goals.

If you plan to raise UCR fees in 2026, align these adjustments with your growth strategy. Explain the reasoning clearly and confidently. Patients appreciate honesty, and your team will be empowered to share the value you provide.

Plan a Q1 strategy meeting with your advisors. A focused session helps turn goals into action.

7. Take Time to Reflect and Celebrate

Take time to recognize your achievements. Celebrate the successes in 2025, whether financial, operational, or team-related.

Acknowledging success fosters a positive culture and demonstrates to your team that their efforts matter. Gratitude creates energy for the new year.

A year-end review is more than an administrative task. It’s a strategic investment in your future. By dedicating time to review your payroll, finances, KPIs, UCR fees, and personal planning, you position your practice for a confident and successful start to 2026.

Not sure where to start? Contact us today!