Five dentists share how they handle unexpected expenses:
Note: Responses were lightly edited for grammar and clarity.
Stephen Mccuin, DDS (Radford, Va.): I usually try to keep above $150,000 in my checking account at all times so if I have an unexpected expense, I don’t have to worry.
Jonathan Sanderson, DDS. Cutbirth, Sanderson Family Dental Group (Texas): We draw from our reserves. We try to budget for everything that can be expected, but we have retained earnings to handle the unexpected expenses.
Michael W Davis, DDS. Smiles of Santa Fe (New Mexico): I have established a savings fund for unexpected expenses. This has absolutely been invaluable when an X-ray unit conked out, or when I was forced to move to Windows 10 software.
Without an emergency fund, I’d need to borrow. That’s why it helps to have an established relationship with a smaller bank or credit union. A small local institution generally cares about business success in their community. Many larger national chain lenders not only offer higher rates, but seemingly don’t care all that much about small-business borrowers.
Anthony Lombardi, DDS. Lombardi Dentistry (Morris, Ill.): Fortunately our practice is very stable and highly productive. It would take a six-figure unexpected expense to alter the budget. However, I would simply draw from my line of credit and pay the expense so as not to alter the day-to-day financial responsibilities.
Amit Shah, DDS. Creative Smiles (Fullerton, Calif.): We have a budget for most of our expenses, and we also have a reserve fund allocated for our unexpected expenses. I keep it simple. We allocate a percentage of gross for most of our expenses.
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