Dental Boardroom Podcast

Blog By:
Practice Orbit

View More Episodes: https://podcasts.apple.com/us/podcast/the-dental-boardroom/id1518344747

In this episode of The Dental Boardroom Podcast, Wes Reed, CPA, CFP, continues his financial planning series for dental practice owners by diving deeper into the concept of break-even levels and the importance of creating a business financial plan that supports your personal financial goals.

Wes revisits the three key break-evens every dentist should know:
1. Practice Break-Even – Covering fixed costs, variable costs, and debt.
2. Living Budget Break-Even – Covering your practice costs, personal living expenses, and taxes.
3. Financial Independence Break-Even – Covering all the above while setting aside money for your future.

From there, he outlines the five critical steps to building a business financial plan, with a special focus on Step 3: Completing a Tax Plan. Wes shares why tax planning is not just a one-time event but an ongoing process tied to your overall cash flow and long-term financial independence.

Whether you’re just starting your practice or have years of experience, this episode offers a practical roadmap for aligning your business and personal finances so that your work today fuels the life you want tomorrow.

Key Points
1. Recap of the three break-evens: Practice, Living Budget, and Financial Independence.
2. Why defining your version of financial independence is essential before planning.
3. Four core steps in the financial planning sequence for dentists.
4. Five steps to creating a business financial plan
5. Importance of structuring your practice as an S Corporation for tax efficiency (in most cases).
6. Tax planning as an ongoing process, not a one-time task.
7. Balancing current needs with future goals through strategic planning.