How to Track Income from Both Your Practice and Side Hustles

Insights for Dentists, Doctors & Healthcare Professionals
CPA for Dental Practice | CPA for Healthcare Professionals | Dentist CPA in Los Angeles

If you’re a dentist running a private clinic, a doctor with a consulting side gig, or any healthcare professional juggling multiple streams of income, keeping it all organized can feel overwhelming. But messy income tracking can lead to overpaying taxes, missed deductions, or IRS headaches — and no one wants that.

Why Good Tracking Matters

When you handle income from different activities the right way, you:
✔  Stay compliant with IRS rules
✔  Maximize deductions and credits you’re legally entitled to
✔  See exactly which parts of your work are most profitable
✔  Have clean records in case the IRS comes knocking

Professionals who work with a CPA for Dental Practice or CPA for Healthcare Professionals often find they keep more of what they earn — simply because their income streams are tracked properly.

1. Keep Separate Accounts

If your side hustle — like consulting, teaching, or selling products — is bringing in steady money:
✔️ Consider setting up a separate LLC or sole proprietorship
✔️ Open a dedicated business bank account just for that revenue

Many dentists and doctors have side income streams, like:
• Consulting for other practices
• Speaking at dental or medical conferences
• Acting as expert witnesses
• Teaching continuing education (CE) courses
• Selling whitening kits, dental care products, or aftercare items to patients

Example: What would you do if you’re a dentist with a busy practice who also earns extra income consulting for other clinics and speaking at industry events? Do you know how to keep that side income separate, track it properly, and make tax season far less stressful — while clearly seeing how much your side work really adds to your bottom line?

👉 If you don’t, you can always call us for help — we make it simple.

2. Get Professional Support to Organize It Right

Tracking income from multiple sources can get confusing fast — especially if you’re handling patient payments, insurance reimbursements, speaking fees, or online sales all at once.

A good CPA for Dental Practice or CPA for Healthcare Professionals will help you:
✔️ Separate each stream clearly in your books
✔️ Categorize income and expenses properly
✔️ Prepare accurate reports for taxes and planning

Example:
What would you do if you’re a dentist with a thriving practice who also sells whitening kits online or offers paid webinars? Do you know exactly which activities are most profitable — and are you prepared for tax season with no surprises?

👉 If not, now’s the time to get expert help so you don’t leave money on the table.

3. Watch for 1099s and Other Forms

Side income often triggers forms like 1099-NEC (for freelance work) or 1099-K (for payments through PayPal, Stripe, or similar).

Always:
✔ Match 1099s to your own records
✔ Keep them safe — paper and digital
✔ Report them correctly to avoid double-reporting or missing income

Example:
What would you do if you’re a doctor who earns an extra $15,000 speaking at medical conferences (and gets a 1099-NEC) — plus another $20,000 selling wellness products through Shopify, with payments reported on a 1099-K from PayPal? Do you know how to keep these forms organized so filing is simple and there are no surprises at tax time?

👉 If you’re not sure, it’s time to get the right support in place.

4. Separate Business and Personal Expenses

Mixing them is an IRS red flag.
✔ Use a business credit card for practice and side gig expenses
✔ Track mileage separately if you travel for both
✔ Keep receipts and notes — digital copies work too

5. Revisit Your Structure

More income streams might mean it’s time to adjust how you’re set up — a separate LLC, an S-Corp, or a new retirement plan could save thousands. But you need to know when it’s worth it.

Example:
What would you do if you’re a dentist with a busy clinic and a profitable affiliate income stream from YouTube? Do you know if setting up a separate structure could help protect your assets and unlock extra tax savings?

👉 If you’re not sure, now’s the time to get expert advice.

The Bottom Line

Multiple income streams are great for dentists, doctors, and healthcare entrepreneurs — but only if you track them clearly and plan ahead. The right approach means less stress, clean books, bigger savings, and a practice that’s ready to grow.

For more information about our services, please visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org