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

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

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