Beta

Welcome, Beta Tester! Share your feedback in the Community

Paragon Financial Playbook
Ken Runkle • Paragon Management

Master Your Practice P&L

Your P&L should be clear, accurate, and understandable without needing a calculator. If you have to calculate or guess, it's not set up correctly. A well-structured P&L allows you to see exactly where every dollar is going.

53%
Target Overhead
47%
Target Profit
6
Key Categories
$
Staff Payroll
On Target
%
Staff Payroll0.0%
0%Target: 25%42%
Lab & Supplies
On Target
%
Lab & Supplies0.0%
0%Target: 12%23%
Facility Costs
On Target
%
Facility Costs0.0%
0%Target: 5%15%
General Expenses
On Target
%
General Expenses0.0%
0%Target: 4%15%
Marketing
On Target
%
Marketing0.0%
0%Target: 4%15%
Merchant Fees
On Target
%
Merchant Fees0.0%
0%Target: 3%15%

Deposit Account

Visible to Staff
  • All patient payments deposited here
  • Staff reconciles daily against PMS reports
  • Merchant fees tracked and reconciled to the penny
  • Full transparency for accountability
Operations & Reconciliation

Draw Account

Private — Owner Only
  • Owner distributions transferred here
  • Retirement plan contributions
  • Personal benefits and discretionary spending
  • Separates business operations from personal wealth
Owner Wealth & Legacy
Patient Payments
Deposit Account
Pay Expenses
Transfer Profit → Draw Account

"Merchant fees should be reconciled to the penny with your bank statements and P&L. Accuracy here is non-negotiable."

— Ken Runkle, Paragon Management

$
%
$
$
$
Doctor Earnings
$420,000

35% commission on $1,200,000 collections

This is what you earn as a working doctor — even if you sell to a DSO, you keep this.

Owner Profit (Hidden in Expenses)
Retirement$66,000
Benefits$24,000
Discretionary$18,000
Total Add-Backs$108,000
True Owner Profit
$528,000
44.0% of collections

"Owner profit includes retirement contributions, personal benefits, and discretionary spending — all should be clearly marked, even if listed as expenses, so you're not fooling yourself about true profitability."

— Ken Runkle, Paragon Management

Linear Thinking

Steady, slow, incremental growth. Safe but limiting. "We'll get there eventually."

Geometric Thinking

Exponential growth through mindset change. Starts with one question: "What would the perfect practice look like?"

Own It Mentally First

Ask yourself: 'If I owned this practice, what would I do differently?' If you don't own it fully in your mind, you won't manage it like an owner.

Design the Perfect Practice

Growth starts with a simple question: 'If I could design the perfect practice, what would it look like?' Visualize it, then build toward it.

Expect and Overcome Pushback

Staff, patients, and even family may resist change. But clarity, consistency, and conviction will carry you through. Stop making excuses — start finding ways.

Your Money, Your Responsibility

You deserve to know where every penny goes. Don't accept vague reports or delayed statements. Demand accuracy, insist on transparency, and lead with ownership.

"This is not just about numbers — it's about building a practice that supports the life and legacy you want."

— Ken Runkle, Paragon Management

Financial Calculator

The 3 Numbers That Set You Free

12 CEO Numbers

Every Metric a Dental CEO Must Track

Team Accountability

Track Your Team's Weekly Numbers

Financial principles by Ken Runkle, Paragon Management • Integrated by Dental Mastery Academy

These benchmarks are guidelines. Consult your CPA for practice-specific financial advice.