Net income

Net income is the last line on the P&L: collections, minus every operating expense, minus doctor compensation, minus interest and taxes. It is the number that answers the question an owner actually cares about (after paying the dentists, the staff, the lab, the landlord and everyone else, is there anything left), and it is a different, smaller number than the "profit" figure the overhead calculation stops at.

The overhead percentage a practice tracks day to day deliberately stops before doctor pay comes out, because doctor compensation varies so much by ownership structure that comparing practices on it directly is misleading. Net income goes one step further and includes it, which is why a practice can look excellent on overhead percentage and still show a thin or negative net income if the owner is drawing more than the business can actually support.

Read net income on the P&L your accountant produces, not on a bank balance, since a strong month in the account can still reflect unpaid bills or a loan draw rather than real earnings. It is the number that ultimately funds retirement savings, reinvestment in the practice, and everything beyond a comfortable paycheck.