By Dr. Glenn Vo, Editor-in-Chief of Dental Lifestyles Magazine

In the world of dentistry, we’re trained to spot problems before they become painful. We look for the subtle signs—a tiny shadow on an X-ray, a hairline fracture, the earliest stages of decay. But when it comes to our practice’s financial health, many of us are operating blind, missing critical warning signs until they’ve developed into full-blown emergencies.

That’s why, for this edition’s cover feature, I sat down with Harsh Patel, CEO of HMP Consultants, the winner of our 2024 “Favorite Dental CPA” Nifty Award, and someone who approaches financial health with the same diagnostic precision we bring to clinical care.

As someone who has been in Harsh’s client chair myself, I’m one of his biggest fans. Filing your taxes or balancing your books may be Harsh’s “bread and butter,” but—more importantly—he also understands the unique challenges we face as dental professionals when it comes to building thriving, sustainable practices.

From Broad Accounting to a Niche in Dentistry

Harsh’s journey into dental-specific accounting wasn’t planned; instead, it evolved organically from recognizing an unmet need. When he first launched his firm, HMP Consultants served clients across all industries. But something special happened when he began working with dental practices.

“When I first started my firm, I served all industries. I had some dental clients, and I quickly realized that I enjoy working with dentists,” Harsh shared during our conversation. “There are many aspects to the business. They don’t educate students in the business side of dentistry in dental school. Therefore, owners often need assistance understanding that aspect when it comes to practice ownership.”

He couldn’t be more right. We spend years mastering the clinical skills needed to provide exceptional patient care, but graduate with minimal preparation for the business realities of running a practice. 

What started as a handful of dental clients soon became a transformation of his entire practice. “I had a batch of dental practice clients as I was serving other industries,” Harsh explained. “I not only enjoyed the professionalism of the clients, but being able to offer more services and consulting within dentistry was what kickstarted the transformation.”

But, for Harsh, it wasn’t just a matter of business opportunity; there was something deeper that drew him to our profession. “There are a lot of things to focus on. I realized this was something I am passionate about. Being able to specialize in one industry allows us to provide better service to our clients, and it allows us to grow at the same time.”

This specialization has paid dividends for both Harsh and his clients. By focusing exclusively on dental practices, HMP Consultants has developed an intimate understanding of our industry’s unique financial challenges—from managing high equipment costs and staffing complexities to navigating insurance reimbursements and planning for practice transitions.

The Hidden Cost of DIY Financial Management

During our conversation, I asked Harsh to share a recent example that illustrates why dentists need specialized financial guidance. His response painted a picture that’s all too familiar in our industry.

“There was a new practice owner who contacted us. I had an initial consultation, and during that consultation, I learned that they had a family member doing the books,” Harsh recounted. “The bookkeeping was incorrect—not caught up—and their business structure was incorrect as well. After they began working with me, their production doubled within a few months.”

The implications were staggering. Here was a practice experiencing tremendous growth—production doubling in just months—but the owner was flying blind. “With this sticky situation, they did not know how to make business decisions with hiring additional hygienists, etc.,” Harsh explained.

This scenario represents more than just poor bookkeeping. It’s a practice at a critical inflection point, unable to capitalize on its success because the owner lacks the financial visibility needed to make informed decisions. Should they hire more staff? Invest in new equipment? Expand their space? Without accurate, timely financial data, these become guesses rather than strategic decisions.

But perhaps the most common—and costly—mistake Harsh sees involves business structure. “The most common error that many owners tend to make is with their business structure—Sole Proprietor versus S-Corporation,” he revealed. “They don’t seek professional advice, or they may have gotten incorrect advice. This results in them having to overpay taxes.”

The solution? “One of the first things we do is assess the business structure of our new clients. If required, we switch it to the correct structure with calculations to prove the savings.”

These aren’t abstract concepts—they translate directly to your bottom line. The wrong business structure can cost a practice tens of thousands of dollars annually in unnecessary taxes. That’s money that could be invested in new technology, staff bonuses, or your retirement fund.

Beyond the Annual Check-In

One of the most striking differences in Harsh’s approach is his emphasis on frequent, regular communication with clients. While many CPAs may meet with clients once a year (usually just before tax season), Harsh insists on holding monthly or quarterly meetings.

“It is important for us, as accountants, to know what is happening within the business and personal side of our clients,” he explained. “Likewise, they need to know what is happening on the accounting and tax side.”

This regular cadence serves multiple purposes. “With frequent meetings, the clients know where they stand with their taxes. They are also aware of any changes in laws or regulations. As a team, we can collaborate and come up with action items to plan for the remainder of the year, make important business decisions, set goals, and save more in taxes.”

It’s not so different from how we approach patient care. We don’t see patients once and then hope for the best—we schedule regular check-ups, monitor progress, and adjust treatment plans as needed. Harsh applies this same philosophy to financial health.

Navigating Industry Evolution

The dental industry is experiencing rapid change. DSOs are reshaping practice ownership models, group practices are becoming more common, and technology investments are accelerating. I asked Harsh how he helps practices navigate these shifts from a financial perspective.

“We help clients with vendor changes to save more,” he responded. “In addition, we advise on using the latest technology to help their practice be as efficient as possible. With any large investment, we help break down the cost-benefit analysis and determine if the investment is worthwhile. After that, we analyze the tax side and see the tax impact of the investment.”

This comprehensive approach to financial decision-making is a must in today’s environment. Whether you’re considering a CEREC machine, exploring laser dentistry, or evaluating practice management software, these investments require rigorous financial analysis.

Looking ahead to 2025, Harsh highlighted several pending changes that practice owners should monitor: “There are a lot of proposals that are pending final approval. 100% bonus depreciation, no tax on overtime, and changes in the State and Local Tax deduction are a few to keep an eye on.”

The Power of Specialized Knowledge

When I asked Harsh about lesser-known tax strategies that could benefit dental practices, he didn’t disappoint. Beyond the commonly discussed Augusta Rule and vehicle deductions, he highlighted opportunities many practices miss.

“We advise on the Work Opportunity Tax Credit, which is a tax credit if your practice hires employees from certain targeted groups, such as veterans or individuals receiving government assistance,” he explained.

These are the kinds of opportunities that general CPAs often overlook because they’re not immersed in the specific needs and opportunities of dental practices. It’s like the difference between a generalist who sees teeth and a specialist who understands the intricacies of endodontic therapy.

For dentists still using their parents’ CPA or a general practitioner, Harsh offered specific questions to assess whether they’re getting appropriate support: “Is their CPA implementing KPIs, goals, projections, tracking new patient counts, monitoring production, A/R balance? If they aren’t doing those at the minimum, they should request them to do so.”

Scaling Strategies

One of HMP Consultants’ strengths is its ability to support practices at every stage of growth. I was curious how their approach differs between a solo practitioner and someone managing multiple locations.

“We provide different layers of reporting and metrics,” Harsh explained. “With a solo practitioner, we focus a lot on education and helping our clients grow their business acumen. This involves understanding key financial metrics, staying on top of overhead, and focusing on growing the practice.”

But as practices expand, the complexity multiplies exponentially. “With multi-practice, there are more complexities. It is our job to provide as much financial insight and metrics on each practice and at a consolidated level. At times, we must restructure everything and utilize tax credits. This requires more frequent meetings and advanced tax planning.” He emphasized a crucial point: “Small changes result in massive savings. We have to make sure the owners do not over-leverage themselves.”

This scalable approach to financial management ensures that whether you’re running a single operatory practice or building a multi-location empire, you have the financial intelligence needed to make informed decisions.

The Role of Benchmarking in Practice Success

Benchmarking—comparing your practice’s performance against industry standards and regional competitors—plays a pivotal role in HMP’s process. Harsh makes certain that his clients don’t view it as abstract numbers on a spreadsheet.

“It is important for owners to know their overhead and how it stands against industry standards,” Harsh emphasized. “Rising costs and employment issues can significantly impact overhead. If a specific metric is off by a large amount, it is important for the client to know.”

The key is translating data into action. “Being able to build out the metrics and reports on an ongoing basis allows us to present this to our clients. A minor change can result in tremendous savings.”

When Financial Health Translates to Patient Care

Perhaps the most powerful moment in our conversation came when I asked Harsh to share a story where financial guidance directly impacted patient care.

“There was a client that had a massive cash flow issue,” he told me. “The practice was not profitable for 18 months. They were 6 months out from selling the practice if things did not turn around.” The situation was dire—huge accounts receivable balance, toxic office manager, poor front office, bad reviews, and an owner who had lost grip of the practice.

“This caused a lot of mental strain on the owner. The patient experience fell apart. The doctor lost some confidence with these issues and stopped doing larger cases.”

Through careful analysis of management reports and financials, Harsh identified the specific issues and worked with the client to address them. “After fixing overhead, staff, and office protocols, things slowly turned around. After 6 hard-working months, the office was coming back. The production and new patient counts improved. The patient experience was improved as a result of all this.”

Many dentists don’t realize it, but financial stress doesn’t just affect the bottom line—it affects every aspect of patient care. When practice owners are worried about making payroll or keeping the lights on, it’s impossible to provide the level of care our patients deserve.

The Rewards of Partnership

When I asked Harsh about the most rewarding part of working with dental professionals, his answer reflected the same service-oriented mindset that draws many of us to dentistry.

“Being able to educate clients on the financial side of things is a great experience. Seeing the practice grow and evolve after all this makes it all worthwhile,” he shared. “Practice ownership is not easy. Being able to help owners grow brings a lot of gratitude.”

This educational component is central to Harsh’s philosophy. He’s not interested in simply handling the books—he wants his clients to understand their finances well enough to make confident, informed decisions about their practice’s future.

Preparing for Tomorrow’s Challenges

As we look ahead to the next 5-10 years, Harsh sees technology as a major disruptor in dental finance. “Utilization of technology and AI is growing. Older practices that don’t implement newer systems and processes may need to start making changes in the near future so they are competing with the newer ones.”

While he remained tight-lipped about specific new services HMP Consultants is developing (“There are a few things I am working on. At the moment, I don’t want to release the news”), he assured me that “the new tools will definitely bring a new and improved experience to our clientele.”

A Call to Action for Financial Health

As our conversation drew to a close, I asked Harsh what he would say to dentists who have been putting off getting their finances in order. His response was both simple and profound.

“Staying ahead of your finances and numbers will advance your career. Small changes can bring significant improvements. There is no harm in getting a second look at how you are doing things. It is better to regret now than regret 10 years from now.”

For those ready to take that first step, HMP Consultants offers a free tax and accounting analysis session. “The consultation is a discovery call where we go through the structure. In addition, we address any pain points you may have with the current services you are receiving,” Harsh explained. “This small consultation addresses errors, structural changes, and potential tax savings opportunities.”

What surprises clients most? “The biggest surprises come when we discover inefficiencies in their tax and reporting.”

The Bottom Line

After my conversation with Harsh, I’m more convinced than ever that specialized financial guidance isn’t a luxury for dental practices—it’s a necessity. Just as our patients trust us with their oral health because of our specialized knowledge and training, we need financial partners who understand the unique challenges and opportunities of dental practice ownership.

Harsh and his team at HMP Consultants represent a new breed of financial professionals—those who see beyond the numbers to understand the human side of practice ownership. They recognize that behind every P&L statement is a dentist trying to provide excellent patient care while building a sustainable business. Behind every tax return is a practice owner juggling clinical responsibilities with business demands.

In our Nifty Thrifty Dentists community, we’re always looking for partners who share our values of education, collaboration, and mutual support. Harsh embodies these principles, which is why I’m not just featuring him in this magazine—I’m proud to call him my CPA.

If you’re ready to take control of your practice’s financial health, I encourage you to reach out to Harsh and his team. Whether you’re a new graduate opening your first practice or an established owner looking to optimize your operations, they have the expertise and dedication to help you succeed.

Remember, in dentistry, we don’t wait for problems to become painful before addressing them. The same principle should apply to your practice’s financial health. Take action today—your future self (and your patients) will thank you.
To learn more about HMP Consultants or to schedule your free tax and accounting analysis session, visit https://www.hmpconsultants.com/ or reach out directly to Harsh and his team.