117: Dental Financial Planning: Turning Chaos into Financial Freedom - Part 7

In this episode of The Dental Boardroom Podcast, host Wes Read, CPA, CFP®, breaks down how dentists can turn tax chaos into predictable, stress-free planning. He shares why relying on your CPA only at tax time often leads to big surprises and how a structured approach, meeting mid-year and again in Q4, keeps finances on track. By using payroll strategically to cover nearly all taxes, dentists can avoid penalties, manage their cash flow more effectively, and replace large, unexpected bills with a small, manageable refund.

Wes also explains why payroll is more than just a paycheck; it’s a tax strategy tool. From maximizing retirement contributions to putting kids or a spouse on payroll, timing expenses, and leveraging deductions like the home office, payroll decisions drive both tax savings and financial efficiency. Integrated planning across tax, payroll, and financial management ensures dentists stay ahead and build long-term wealth without the stress of last-minute fixes.

Key Points

• Aim for a small refund ($1K–$5K), not big surprise bills.
• Forecast taxes 2–3 times per year (mid-year + Q4).
• Use payroll withholdings to cover 100% of taxes and avoid late penalties.
• Payroll drives key strategies: retirement savings, FICA planning, and paying family members.
• Most tax strategies must be implemented before December 31.
• Integrated planning avoids inefficiencies from juggling multiple advisors.