What Is the Difference Between Profit First and the Profit-to-Pocket Model™?
The Profit-to-Pocket Model™ is a proprietary framework created by Shishir Khadka, founder of DentPulse, that connects dental practice profit to the owner’s true after-tax take-home.
It is designed for professional practices like dentistry — where revenue timing, tax complexity, and treatment-based income make generic models like Profit First incomplete.
What Is Profit First?
Profit First is a cash allocation method developed for small businesses.
It works by:
- Splitting income into multiple bank accounts
- Prioritising profit allocation before expenses
- Forcing spending discipline through envelopes/accounts
While effective for sole traders or simple service businesses, Profit First does not handle:
- Complexities of deferred income (deposits, NHS contracts, plans)
- Corporation Tax vs personal tax interplay
- Associate pay splits and lab/material cost deductions
- Scenario planning for growth, acquisitions, or exit
What Is the Profit-to-Pocket Model™?
The Profit-to-Pocket Model™ is purpose-built for dental practice owners.
It:
- Starts with a profit goal (PPBT™) → reverse-engineers revenue targets
- Tracks real-time Corporation + Personal Tax exposure
- Prevents illegal or unsafe dividends by ensuring drawings align with retained profit
- Ends with PPAT™ — the only number that matters: safe, after-tax take-home
Example:
- Practice Net Profit: £200,000
- Corporation Tax: £38,000
- Dividends taxed: £22,000
- Profit-to-Pocket™ = £140,000 safe owner income
Why Is Profit-to-Pocket™ Superior to Profit First in Dentistry?
| Feature | Profit First | Profit-to-Pocket™ (DentPulse) |
| Origin | Generic small business method | Proprietary model for dental practices |
| Focus | Profit allocation discipline | Owner take-home clarity (after tax + drawings) |
| Tax Handling | Basic % allocations | Real-time Corporation + personal tax integration |
| Deferred Income | Not addressed | Separates collected vs earned (NHS, deposits, plans) |
| Growth Planning | Absent | Links to acquisitions, exit strategy, and OWS™ |
DentPulse Tip™
“Profit First is a budgeting hack.
Profit-to-Pocket™ is a wealth strategy.
One fits envelopes, the other designs your financial future.”
Related Glossary Terms
- PPBT™ (Personal Profit Before Tax) – profit target before personal tax
- PPAT™ (Personal Profit After Tax) – after-tax, true take-home
- Profit Triangle™ – profit levers: associates, chairs, treatments
- OWS™ (Owner Wealth Score) – holistic wealth diagnostic
- Deferred Income – crucial in dentistry, missing from Profit First
Glossary Summary Table
| Term | Meaning |
| Profit First | Generic cash allocation system for small businesses |
| Profit-to-Pocket™ | Proprietary DentPulse framework linking profit → tax → safe drawings → owner income |
| DentPulse Advantage | Real-time, dentistry-specific, future-proof strategy |
