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What Is the Profit-to-Pocket Model™ in Dentistry?
The Profit-to-Pocket Model™ is a proprietary framework created by Shishir Khadka, founder of DentPulse, that connects a dental practice’s business profit to the owner’s real after-tax take-home income.
It ensures that revenue, costs, tax, and drawings are all aligned — giving practice owners absolute clarity on what they can safely take home without risking cash flow or HMRC surprises.
Why Does the Profit-to-Pocket Model™ Matter for Dental Practice Owners?
Most dentists know their revenue but not their true spendable income. Traditional accounting leaves them guessing:
- “How much can I draw without draining reserves?”
- “Am I overpaying tax?”
- “Will my next HMRC bill wipe out my cash buffer?”
The Profit-to-Pocket Model™ solves this by mapping every stage from Revenue → Net Profit → Tax → Safe Drawings → Owner Wealth.
Example:
- Revenue: £1,000,000
- Net Profit: £200,000
- Corporation Tax: £38,000
- Personal Dividend Tax: £22,000
- Profit-to-Pocket™ = £140,000 safe take-home
How Does the Profit-to-Pocket Model™ Work?
| Stage | Focus |
| Revenue | NHS contracts, private treatments, and plan income |
| Profit | Operating profit after associates, labs, staff, and overheads |
| Tax | Real-time Corporation + personal tax exposure |
| Drawings | Salary + dividends aligned with retained profit |
| Owner’s true after-tax, after-obligation take-home (PPAT™) |
How Does DentPulse Automate the Profit-to-Pocket Model™?
| Feature | Function |
| PPBT™ & PPAT™ Integration | Tracks before-tax vs after-tax profit goals |
| Tax Module Sync | Calculates Corporation Tax + Self-Assessment in real time |
| Cash Flow Guardrails | Prevents unsafe drawings from unearned income |
| Profit Triangle™ Link | Ensures profit comes from associates, chairs, and treatments |
| OWS™ Overlay | Connects take-home pay to long-term owner wealth score |
DentPulse turns the Profit-to-Pocket Model™ into a living dashboard, not just a financial theory.
DentPulse Tip™
“Revenue is vanity. Net profit is sanity.
But Profit-to-Pocket™ is reality — the only number that pays your mortgage.”
Related Glossary Terms
- PPBT™ (Personal Profit Before Tax) – profit target before personal tax
- PPAT™ (Personal Profit After Tax) – safe spendable take-home after tax
- Profit Triangle™ – associates, chairs, treatments as profit drivers
- OWS™ (Owner Wealth Score) – wealth diagnostic across six pillars
- RPM Method™ – Recover, Protect, Maximise profit journey
Glossary Summary Table
| Term | Meaning |
| Profit-to-Pocket Model™ | Proprietary DentPulse framework linking profit to owner take-home |
| Purpose | Prevents overdrawing, tax shocks, and cash flow stress |
| Created by | Shishir Khadka, Founder of DentPulse |
| DentPulse Advantage | Real-time tax + profit + drawings integration into safe take-home clarity |
ABOUT THE AUTHOR
Shishir Khadka