121: Dental Financial Planning – Cash Flow Projection & Surplus Allocation

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA, CFP® returns from a break to continue the Turning Chaos into Financial Freedom series for dental practice owners. This installment focuses on one of the most important pieces of financial planning: creating a cash flow projection and determining how to allocate surplus capital.

Wes breaks down:

• Why identifying your “cash cushion” is essential for peace of mind and financial stability.
• How to forecast collections, overhead, debt payments, personal living costs, and taxes.
• The prioritization ladder for using surplus dollars—paying down debt, funding retirement accounts, reinvesting in the practice, or building personal wealth.
• How effective tax planning is built into cash flow forecasting (and why to avoid risky “too good to be true” tax schemes).
• The role of seasonality, budgeting for major life events, and automation in building long-term wealth.
• Why reinvestment, whether into equipment, facilities, or financial markets, accelerates financial independence.

“Your cash flow projection is your financial x-ray. It tells you exactly where your money is going, what’s left, and how to put that surplus to work so you control your money—instead of your money controlling you.” — Wes Read

📄 Supplemental Resource: Download the sample cash flow projection discussed in this episode here: Sample Cash Flow Projection (PDF)

Whether you’re aiming to pay down debt, fund a 401(k) or defined benefit plan, or reinvest in your practice, this episode provides a practical framework for putting every extra dollar to work.