Your Financial Plan Is Not Your Estate Plan, and Dentists Need Both

Key Takeaways

  • Financial planning and estate planning serve different purposes, and dentists need both.
  • Financial planning focuses on building, managing, and transitioning wealth during your lifetime.
  • Estate planning determines what happens to your assets and practice if you become incapacitated or pass away.
  • Misalignment can create tax inefficiencies, liquidity problems, and practice succession conflicts.
  • Your dental practice is often your largest asset, so coordination between financial and estate plans is critical.
  • Both plans should be reviewed annually and after major life or business changes.

As a dentist, you spend your career helping patients think about their teeth in the long term. Your financial life deserves the same approach.

Many dentists assume that because they have retirement accounts and a will in place, they are fully “covered” when it’s time to hang up their handpiece. In reality, financial planning and estate planning serve very different purposes. One helps you build and manage wealth during your lifetime. The other determines what happens to that wealth, and often your practice, if you become incapacitated or pass away.

When they aren’t aligned, gaps form. And those gaps can be costly.

What Financial Planning Actually Does

Financial planning is the ongoing process of organizing your money around your goals. For dentists, that usually includes retirement planning, tax strategy, debt management, investment oversight, and coordinating major business decisions with personal objectives.

It’s not static. As your practice grows, as your income increases, as you bring on partners or begin thinking about a transition, your financial plan should evolve alongside those changes.

A strong financial plan answers questions like:

  • Are you saving efficiently for retirement?
  • Is your investment strategy aligned with your timeline?
  • Are you overexposed to risk through your practice?
  • How will a future practice sale support your lifestyle goals?

This planning focuses on decisions you make while you’re alive and actively working.

What Estate Planning Is Designed to Do

Estate planning, by contrast, is about control and protection when you are no longer able to make decisions yourself.

It includes documents such as wills, trusts, powers of attorney, and healthcare directives. It also involves beneficiary designations, guardianship considerations, and structured plans for transferring business ownership.

Estate planning answers a different set of questions:

  • Who makes financial or medical decisions if you cannot?
  • Who inherits your assets and how?
  • What happens to your dental practice?
  • Can your family access liquidity if something unexpected occurs?

Without estate planning, state law decides many of these outcomes. With proper planning, you do.

Why Dentists Need Both, And Why They Must Align

Financial planning builds wealth. Estate planning directs it.

But here’s where it becomes more nuanced: the way assets are accumulated affects how they transfer. Retirement accounts, practice equity, investment portfolios, and real estate holdings all carry different tax treatments and transfer rules.

If your financial plan isn’t coordinated with your estate plan, several problems can arise:

  • Retirement assets may pass inefficiently.
  • Practice succession plans may conflict with ownership structures.
  • Heirs may face unnecessary tax burdens.
  • Liquidity shortages can create stress during already difficult circumstances.

For dentists especially, your practice is often your largest asset. If your estate documents do not reflect your partnership agreements or transition plans, your family and your partners could find themselves in legal and financial confusion. Alignment matters.

Where Dentists Commonly Fall Behind

Even highly successful dentists tend to delay one side of this equation.

Sometimes estate planning gets postponed because it feels uncomfortable or unnecessary. Other times, financial planning becomes outdated after major life events, such as marriage, children, expansion, bringing on an associate, or preparing to sell.

Another common issue is assuming that a succession conversation equals a succession plan. Without formal documentation and a coordinated tax strategy, intentions alone are not protection.

If it has been several years since you reviewed either plan, that alone is reason to revisit both.

How to Reevaluate Your Position

You don’t need to overhaul everything overnight. But you do need clarity.

Start by asking:

  • Do my retirement projections still match my intended timeline?
  • Is my practice transition structured to support my personal financial goals?
  • Are my estate documents current and aligned with my business structure?
  • Have I coordinated beneficiary designations with my broader strategy?

Financial and estate planning should be reviewed at least annually and always after major professional or personal changes. When integrated properly, they create a unified roadmap: your income supports your goals, your goals support your legacy, and your legacy is protected.

Bringing the Plan Full Circle

At Edwards & Associates, we provide comprehensive financial planning specifically for dentists. Because we work exclusively in the dental space, we understand how practice value, transition timing, entity structure, and retirement income planning all connect.

When estate planning is needed, we regularly coordinate with and introduce our clients to estate planning attorneys who understand the unique dynamics of dental practices. That collaboration helps ensure your financial plan and your estate documents are aligned, and not working at cross purposes.

If it has been several years since you reviewed your financial plan, or if your estate documents were drafted without considering your practice’s long-term transition strategy, it may be time for a coordinated review. Your practice deserves a plan. Your family does too.

Why Annual Fee Analysis Is Critical for Dental Practice Profitability

Key Takeaways

  • Dental practice profitability often erodes gradually due to rising overhead and stagnant fees.
  • An annual fee analysis helps prevent margin compression before it becomes a larger issue.
  • Even modest 3-5% pricing adjustments can significantly improve year-end performance.
  • Insurance participation requires strategic evaluation, not automatic acceptance.
  • Fee analysis should connect to staffing, technology investment, and long-term growth planning.

Most dental practices do not struggle because of one major financial mistake. Instead, profitability erodes gradually. Overhead creeps up. Staffing costs rise. Supply prices increase. Insurance reimbursements stay flat. Meanwhile, fee schedules often remain unchanged for years.

An annual fee analysis is one of the simplest ways to prevent that slow margin compression. Even modest adjustments, applied strategically, can materially change year-end results.

The Pressure on Dental Practice Margins Is Real

According to the American Dental Association’s Health Policy Institute (HPI), practice expenses continue to challenge profitability across private practices. Staffing, supplies, and lab costs remain ongoing concerns for owners navigating today’s environment.

At the same time, many dentists report frustration with stagnant PPO reimbursement levels. ADA research has documented continued concern around insurance participation and administrative burden.

When expenses increase but fees do not, profit margins shrink quietly. An annual review ensures your pricing reflects current operating realities rather than outdated assumptions.

Small Pricing Shifts Can Produce Outsized Results

Dentists are understandably cautious about fee increases. No one wants to disrupt patient relationships. But most fee analyses do not involve dramatic price hikes. Instead, they identify incremental misalignments.

A modest 3-5% adjustment to frequently performed procedures, aligning underpriced services with regional benchmarks, or correcting inconsistencies between fee-for-service pricing and reimbursement structures can create measurable financial impact over thousands of procedures per year.

The math compounds quickly. Small shifts applied consistently often produce far more benefit than a large, infrequent increase years later.

Insurance Limitations Do Not Eliminate Strategy

It is true that dentists participating in insurance networks cannot always price beyond contractual limits. That reality makes an annual review more important, not less.

A comprehensive analysis evaluates whether PPO participation continues to support profitability, whether certain procedures consistently underperform under insurance plans, and whether renegotiation or selective network participation might be warranted.

The ADA has observed that some practices are reevaluating their dependence on insurance networks as part of broader business strategy discussions.

For some practices, gradually increasing their fee-for-service mix has improved margins and reduced administrative complexity. For others, maintaining insurance participation remains appropriate. The key is that the decision is strategic, not reactive.

Fee Analysis Is About More Than Procedure Codes

Pricing cannot be evaluated in isolation. It connects directly to staffing, technology investment, and growth planning.

A true annual fee analysis looks at production trends, insurance adjustments, compensation structures, capital expenditure timing, and marketing return on investment. For example, if hygiene production supports expansion, adding staff may make sense. If margins are tightening, adjustments elsewhere may be required before increasing payroll.

Understanding how fees support or strain the broader financial structure of the practice gives owners clarity that builds confidence in decision-making.

Why Annual Review Matters

Markets evolve. Costs fluctuate. Patient expectations shift. If pricing remains static while everything else changes, the practice absorbs the difference.

Annual review protects profitability, supports long-term valuation, and allows smaller, steadier adjustments instead of large, disruptive changes down the road. Practices that review fees consistently tend to make proactive decisions. Practices that wait often find themselves reacting.

How Edwards & Associates Supports Dental Practices

At Edwards & Associates, we work exclusively with dental practices. We understand the tension between insurance realities, competitive positioning, staffing pressures, and long-term profitability.

Our fee analysis services help dentists evaluate when to adjust pricing, when to expand teams, how to structure compensation sustainably, and how to allocate resources toward technology and growth. The goal is not simply to raise fees. It is to ensure your pricing strategy aligns with your financial goals and supports a thriving, well-run practice.

If you have not reviewed your fee structure in more than a year, now is the time. Small, informed adjustments today can significantly improve performance by year-end. Contact our team to schedule a fee analysis consultation and ensure your pricing reflects the practice you are building, not just the one you started with.

Podcast Recap: How AI and Virtual Receptionists Are Changing the Dental Patient Experience

Key Takeaways

  • Missed or delayed phone calls are one of the fastest ways dental practices lose new patients.
  • Separating front desk duties from phone coverage can significantly improve both patient experience and staff focus.
  • Virtual receptionists and AI-supported phone systems can extend availability without increasing in-office staffing pressure.
  • Modern AI tools are designed to support, not replace, human staff, routing complex or urgent calls to real people.
  • Improving phone responsiveness can boost patient retention, online reviews, referrals, and front desk staff retention.

In a recent episode of Beyond Bitewings, Ash sat down with Nathan Strum of Abby Connect to discuss how dental practices are rethinking the patient experience, starting with one of the most overlooked touchpoints: the phone. With more competition, higher patient expectations, and ongoing staffing challenges, the way calls are handled can directly impact new patient acquisition, retention, and even team burnout. As Nathan shared, dentists are excellent clinicians, but practice success increasingly depends on running the office with the same customer-service mindset found in other service-driven businesses.

A key theme of the conversation was the distinction between front desk responsibilities and phone coverage. In many practices, the same person is expected to greet patients in person, manage paperwork, handle scheduling, and answer every incoming call. That setup often leads to rushed interactions, missed calls, or patients being placed on hold, especially during busy times or outside normal hours. From a patient’s perspective, unanswered calls or long wait times are more than an inconvenience; they’re often a reason to call the next practice on Google or Yelp. In competitive markets, the practice that answers first frequently wins the new patient.

Nathan also emphasized how technology, particularly virtual receptionists and AI-supported phone systems, can help practices stay responsive without overloading in-office staff. Modern AI tools can now handle common questions, appointment scheduling, and after-hours calls with surprisingly natural tone and flow, while still routing more complex or urgent situations to a human. The goal isn’t replacing people but supporting them, ensuring patients get quick answers while allowing front desk teams to focus on the patients physically in the office. For dentists, this can mean fewer missed opportunities, smoother scheduling, and a more consistent patient experience from the very first interaction.

Beyond patient experience, phone coverage plays a significant role in staff retention. Constant phone interruptions add stress to front desk roles that already experience high turnover across the industry. Offloading some of that volume, at a cost that often compares favorably to hiring additional staff, can reduce burnout and improve morale. Nathan pointed out that practices that improve phone responsiveness often see benefits ripple outward: better reviews, stronger word-of-mouth referrals on platforms like Google, Nextdoor, and local Facebook groups, and a more positive internal culture.

The takeaway for dentists is clear: technology decisions around phones and scheduling aren’t just operational details, they’re growth decisions. Whether through virtual receptionists, AI-assisted scheduling, or a hybrid approach, practices that invest in being accessible, responsive, and patient-friendly from the first call are better positioned to stand out. As the episode reinforced, the patient experience doesn’t start in the chair; it starts the moment someone picks up the phone.

Credit Policies That Protect Your Dental Practice

Key Takeaways

  • Extending credit is common in dental practices, but unmanaged credit risk can quietly strain cash flow and staff resources.
  • A simple, objective credit risk rating system helps teams apply billing decisions consistently and reduce emotional judgment.
  • Written payment agreements are essential for larger balances and extended payment plans.
  • Ongoing monitoring, documentation, and a defined collections process prevent small issues from becoming costly write-offs.
  • Proactive credit policies protect the practice while maintaining professionalism and patient trust.

For many dental practices, extending credit is a routine part of delivering care. Whether receiving in-house payment plans, waiting on insurance reimbursements, or billing third‑party payers, timely collections are essential to maintaining healthy cash flow.

Flexibility is valuable, but extending credit without clear guidelines can quietly create financial strain. Even a small number of slow‑pay or unpaid accounts can place pressure on your cash flow and add stress to your front office team.

The objective isn’t to eliminate flexibility. It’s to manage credit risk with intention, professionalism, and consistency so your practice stays healthy while preserving patient trust.

Implement a Simple Credit Risk‑Rating System

Not every account carries the same level of financial risk. Establishing an internal risk‑rating structure helps your team determine:

  • Which patients or accounts are eligible for billing
  • How much credit you are comfortable extending
  • When an account should shift to partial payment or prepayment

Ratings should be based on measurable, objective criteria such as:

  • Payment history
  • Frequency of late payments
  • Outstanding balances
  • Insurance reimbursement patterns

A defined system reduces emotional decision‑making and ensures your team applies policies uniformly.

Use Written Payment Agreements for Larger Balances

For significant treatment plans or extended payment arrangements, a written agreement is essential. This document should:

  • Identify the financially responsible party
  • Outline payment terms, due dates, and expectations
  • Specify consequences for missed or late payments

If an account becomes delinquent, a signed agreement offers important leverage, particularly if third‑party collection support becomes necessary.

Monitor Payment History on an Ongoing Basis

Once credit is extended, active oversight protects your practice. Adjust terms promptly when an account:

  • Pays late consistently: Reduce the credit limit or shorten terms
  • Misses’ payments repeatedly: Require partial or full prepayment for future services

Adjusting terms isn’t punitive; it is a safeguard that prevents growing exposure and unnecessary write‑offs.

Document All Billing‑Related Communication

Accurate documentation creates continuity and protects the practice. Train your team to record:

  • What was discussed
  • What the patient or payer committed to
  • Any explanations for delays or nonpayment

Patterns often emerge over time. Documentation also helps ensure consistency when staff members change or when multiple team members interact with the same patient.

Establish a Clear, Step‑by‑Step Collections Process

Review your accounts receivable aging report monthly and ensure your team understands the specific actions taken at each stage:

  • 30 days past due
  • 60 days past due
  • 90+ days past due

Defined escalation steps help prevent accounts from aging unnoticed and maintain accountability across the team.

Recognize Early Warning Signs of Credit Risk

Many problem accounts show red flags early. Train your staff to recognize signals such as:

  • Smaller invoices being paid while larger balances remain open
  • Avoiding calls, emails, or follow‑up conversations
  • Requests for increased credit despite poor payment history
  • Failure to provide updated insurance or contact information
  • Reports on personal financial strain

Catching these signs early allows you to adjust terms before balances grow unmanageably.

Protect Your Practice While Supporting Your Patients

Even long‑standing patients may encounter financial challenges. A well‑structured credit and collections system allows your team to differentiate between accounts needing short‑term flexibility and those requiring firmer boundaries.

By staying proactive, consistent, and well‑documented, your practice safeguards its cash flow without compromising professionalism, compassion, or patient trust.

IRS Shares More Details on the Phase-Out of Paper Checks

Key Takeaways

  • The IRS is continuing its move away from paper tax refund checks, making electronic refunds the default.
  • If direct deposit information isn’t provided, the IRS may issue a notice requesting banking details instead of automatically mailing a check.
  • Paper checks may still be issued in limited situations, but they are no longer the default and will become less common over time.
  • These changes do not affect how tax returns are filed, only how refunds and payments are delivered.
  • Most dental practices already operate electronically, but family members or employees who rely on paper checks may experience delays if they aren’t prepared.

Back in September, we wrote a blog post outlining the IRS’s plan to phase out paper tax refund checks, a shift that moves the default toward electronic refunds and, over time, electronic payments. In that earlier post, we focused on the big-picture considerations: why the IRS is making this change, the anticipated timeline, and what taxpayers should expect as the transition unfolds.

Recently, the IRS released additional guidance that fills in many of the practical details. Rather than revisiting what is changing, this update addresses the more common follow-up questions we’ve been hearing, namely, how the process actually works and what happens if banking information is not provided.

For most dentists and practice owners, this won’t feel disruptive. You likely already file electronically, receive refunds via direct deposit, and make payments online. However, these changes are still important, especially if you assist family members, employees, or others who continue to rely on paper checks.

What’s New in the Latest IRS Guidance

What if direct deposit information isn’t included on the return?

If a taxpayer files a return without providing direct deposit details, the IRS will still process the return. However, instead of automatically issuing a paper check, the IRS may send a CP53E notice requesting updated banking information. The taxpayer generally has 30 days to respond.

It’s important to note that the IRS will only communicate this request through an official letter mailed to the taxpayer’s last known address, never by email, text message, or phone call.

This additional step can delay refunds and cause confusion for taxpayers who are expecting a check to arrive in the mail. Including accurate direct deposit information upfront remains the most efficient way to avoid delays.

Will paper checks still be an option?

Yes, but only in limited circumstances. The IRS acknowledges that some taxpayers do not have access to bank accounts or electronic payment tools. In those cases, alternative electronic methods may be used, and paper checks may still be issued as a last resort. That said, paper checks will no longer be the default, and their availability is expected to continue narrowing over time.

Does this change how tax returns are filed?

No. There are no new forms and no changes to the filing process itself. This guidance affects how refunds and payments are delivered after a return is processed, not how the return is prepared or submitted.

Can taxpayers still pay the IRS by check?

For now, yes. Paper checks and money orders are still accepted. However, the IRS continues to encourage electronic payment options such as Direct Pay, EFTPS, and debit or credit card payments. The long-term direction is clearly toward fully electronic transactions.

Will refunds take longer because of this?

Generally, no. electronic refunds remain the fastest and most secure option. Delays primarily happen when a taxpayer expects a paper check that is no longer automatically issued.

Why This Matters, Even If Your Practice Is Already Digital

Most dental practices already operate in a fully electronic environment. However, many people around you, particularly elderly relatives, retirees, or individuals who are uncomfortable with electronic banking, may not be prepared for this transition.

Some still expect a refund check to arrive in the mailbox. Others hesitate to provide banking information due to security concerns. Making them aware of these changes now can help them:

  • Avoid delayed or missing refunds
  • Understand why a paper check may no longer arrive
  • Set up direct deposit or alternative electronic options before filing

For taxpayers who rely on timely refunds, this guidance is especially important.

What to Do Now

For dentists and practice owners, the action steps are straightforward:

  • Keep using electronic filing, refund, and payment methods
  • Verify banking information each year
  • Share this IRS update with family members or employees who still rely on paper checks

And as always, if questions come up, whether about refunds, electronic payment options, or how these changes fit into your broader tax planning, we’re here to help you navigate the details with confidence.

Further Tax Deduction Updates for Dentists: What Meal & Perk Changes Mean in Practice

Key Takeaways:

  • Several everyday deductions dental practices relied on are now limited or eliminated.
  • Employer‑provided meals and on‑site food are no longer deductible beginning in 2026.
  • Client meals and business travel meals continue to be 50% deductible with proper documentation.
  • These changes affect day-to-day spending decisions, not just year-end planning.
  • Practices should reassess perks, reimbursements, and cash‑flow assumptions now, not at filing time.

Earlier this year, we shared an overview of the broader tax deduction changes affecting dental practices in 2026: what changed, what stayed the same, and how to stay ahead. This follow-up takes a closer look at one area where many practices are now seeing real, day-to-day impact: meals, staff perks, and operating expenses that quietly lost their tax benefit as of January 1.

While these provisions aren’t new to the tax code, 2026 is the year they are fully phased out. For many dental practice owners, the impact is only now becoming clear, especially as routine expenses no longer reduce taxable income the way they once did.

These changes don’t mean your practice is out of compliance. But they do mean that assumptions built into your budgeting and tax planning may need to be updated to avoid surprises.

The Biggest Change: Employer-Provided Meals

For most dental practices, the most noticeable shift in 2026 is how employee meals are treated for tax purposes. Meals provided for the employer’s convenience are no longer deductible. This includes:

  • Breakroom snacks and beverages
  • Coffee and refreshments
  • Catered lunches
  • Meals provided during long workdays or late hours
  • On‑site cafeteria or food programs

This rule applies even when meals support productivity, keep staff on-site, or contribute to team morale. In prior years, these costs were partially deductible, but that benefit has officially expired.

However, some meal deductions remain intact:

  • Meals with patients, referral partners, vendors, or consultants are still 50% deductible, as long as there is a clear business purpose.
  • Meals during overnight business travel also remain 50% deductible with proper documentation.

For practices that treat food as part of their culture, this change isn’t about compliance; it’s about budgeting. The expense still exists, but the tax benefit does not.

2026 Deductibility Comparison Table

Here’s a quick glance at how common meal-related expenses are treated starting in 2026:

Expense TypeDeductible Before 2026Deductible in 2026
Employer-provided meals (on-site, convenience)50%0%
Breakroom snacks, coffee, beverages50%0%
Client / referral source meals50%50%
Employee travel meals (overnight travel)50%50%

Documentation and proper reporting remain essential.

What Dental Practice Owners Should Review and Update for 2026

While meal deductions tend to draw the most attention, they’re often just the first place where outdated assumptions show up. The broader issue for many dental practices is that certain expenses still exist, but no longer deliver the same tax benefit they once did.

To stay ahead of surprises, this is a good time to review:

  • How compensation, benefits, and non-cash perks are structured
  • Whether certain fringe benefits should now be treated as taxable wages
  • Recurring expenses that were previously deductible but no longer are
  • Whether certain perks still make sense without a tax offset
  • Timing of equipment purchases or office improvements
  • Whether some expenses should shift from the practice to the personal level
  • Cash flow projections built around deductions that no longer apply
  • Documentation for client meals, travel meals, and reimbursements

This isn’t about alarm or drastic change. It’s about making sure your planning reflects today’s tax landscape, not rules that quietly expired. Addressing these items proactively almost always leads to better outcomes than trying to retroactively adjust at year-end.

Our Take: Awareness Beats Surprise

Tax laws don’t always change with big headlines. Sometimes they shift quietly in the background. The impact often shows up only when the numbers don’t look the way you expected.

At Edwards & Associates, we help dental practice owners understand how current tax rules influence real‑world decisions, from payroll and perks to cash flow and long‑term planning. If your practice may still be operating under assumptions from prior years, now is the right moment to revisit them. If you’d like to review how the 2026 deduction changes affect your practice specifically, our team is ready to walk you through the details long before small changes turn into costly surprises.

A New Federal Education Tax Credit Is Coming in 2027

Key Takeaways

  • A new federal education tax credit under Section 25F begins in 2027, but it is capped at $1,700 per year and is nonrefundable.
  • The credit is only available if a taxpayer’s state opts in and certifies eligible Scholarship Granting Organizations (SGOs).
  • Contributions used for the SGO credit cannot also be claimed as charitable deductions and may be reduced by state-level credits.
  • Strict qualification rules mean only certain nonprofits will be eligible, especially in the early years of the program.
  • For most high-income dentists and practice owners, this credit is a supplemental tool, not a core tax strategy.

Starting in 2027, a new federal tax credit will enter the picture for individual taxpayers who support K–12 education through qualified scholarship organizations. Known as the Scholarship Granting Organization (SGO) tax credit, this provision was created under the One Big Beautiful Bill Act and added to the tax code as Section 25F.

At first glance, this credit looks like another charitable incentive. In reality, it operates very differently from traditional charitable deductions and has some important limitations that dentists and practice owners should understand before factoring it into their planning.

The big takeaway: this is a real credit, but it is narrow, conditional, and unlikely to be a game changer for most high-income earners.

How the SGO Tax Credit Works

Beginning January 1, 2027, individuals may claim a federal income tax credit of up to $1,700 per year for cash contributions made to qualified Scholarship Granting Organizations. The credit reduces federal tax liability dollar for dollar, but it is nonrefundable, meaning it cannot create a refund if no tax is owed. If the full credit cannot be used in a given year, unused amounts may be carried forward for up to five years.

For dentists and practice owners, federal tax liability is rarely the limiting factor. The more important questions are availability, coordination with other credits, and whether the credit adds value compared to existing strategies.

Why State Participation Matters More Than Income

One of the most misunderstood aspects of the SGO credit is that states must opt in before any taxpayer can claim it. No state is automatically included. States that choose to participate must formally elect to do so and submit a list of certified SGOs to the IRS. States can begin making these advance elections this year for 2027.

As of now, no states, including Texas, have opted in. If Texas does not participate, Texas-based dentists would only be able to claim the credit by donating to an SGO located in another participating state, assuming the organization accepts out-of-state donors and is properly certified. Whether that becomes practical will depend heavily on how states implement the program.

What Makes an Organization a “Qualified” SGO

Not every education-related nonprofit will qualify for this credit. To be eligible, an organization must meet strict criteria designed to ensure funds are used for broad-based scholarship support rather than individual benefit.

Among other requirements, a qualified SGO must:

  • Operate as a 501(c)(3) public charity
  • Use at least 90% of its income for scholarships
  • Serve K–12 students from families earning no more than 300% of area median income
  • Provide scholarships only for qualified education expenses
  • Maintain separate accounting for credit-eligible contributions
  • Avoid earmarking donations for specific students

These guardrails are important, but they also mean the pool of eligible organizations may be limited, particularly in the early years.

The Trade-Off Dentists Need to Consider

The SGO credit comes with a key restriction that matters for high-income taxpayers: no double dipping. If a taxpayer receives a state tax credit for the same contribution, the federal credit is reduced dollar for dollar. In addition, any contribution used to claim the SGO credit cannot also be deducted as a charitable contribution.

For dentists who already give charitably and rely on itemized deductions as part of their tax strategy, this trade-off may reduce the appeal. In many cases, the lost deduction could offset much of the credit’s benefit.

Who the Program Is Designed to Help

The scholarships funded through SGOs are intended for students from low- and middle-income families. Eligible students must meet income thresholds and may use scholarship funds only for qualified K–12 education expenses such as tuition, fees, tutoring, books, and special-needs services.

Beginning in 2027, scholarship amounts used for these qualified expenses are excluded from federal income for the recipient. From a policy standpoint, the goal is to expand access to education. From a tax planning standpoint, the benefit to donors is secondary and intentionally capped.

What This Means for High-Income Dental Professionals

Many dentists and practice owners will qualify for the SGO credit. The issue is not eligibility; it’s impact. At a maximum of $1,700 per year, the credit is helpful but modest. It may make sense for those who already support education-focused charities or who value the program’s mission, but it is unlikely to materially change overall tax strategy for most high-income earners. Think of this as a supplemental planning tool, not a cornerstone strategy.

Planning Ahead

As with many new tax provisions, the real planning opportunity lies in understanding the details before acting. For now, the most important things to watch are whether Texas, or your state, elects to participate, which organizations become certified, and how the credit interacts with existing charitable and state-level programs.

Used thoughtfully, the SGO credit may complement an existing plan. Used casually, it may add complexity without much benefit. If you’d like to talk through how this credit fits into your broader personal tax plan or charitable strategy as a dentist or practice owner, we’re happy to help you evaluate it in context rather than in isolation.

New Trump Accounts Are Now Available

A new federal savings tool known informally as Trump Accounts officially becomes available with the opening of tax season on January 26, 2026. While the name has attracted attention, the real opportunity lies in how these accounts can support families and potentially serve as a new employee benefit for dental practices.

Created under the One Big Beautiful Bill in 2025, Trump Accounts introduce a new way to help children build long-term savings starting at birth. For dentists and practice owners, the question isn’t just what these accounts are, but how they might fit into both personal planning and practice benefits strategies.

What Are Trump Accounts?

Trump Accounts are a new type of tax-advantaged savings and investment account established for U.S. children. While they share some features with custodial accounts, they are designed to transition into an IRA-like structure once the child reaches adulthood.

Key features include:

  • Federal seed contribution: Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with Social Security numbers, are eligible for a one-time $1,000 federal contribution when an account is established.
  • Who can open and fund the account: Parents or guardians can establish a Trump Account when filing their tax return by completing IRS Form 4547 and submitting it with their return. Once open, parents, relatives, employers, and others can make contributions.
  • Annual contribution limits: Total contributions are generally capped at $5,000 per year per child, though certain public or charitable contributions may be treated differently.
  • Investment structure: Funds must be invested in eligible mutual funds or ETFs, typically those tracking broad U.S. equity indexes.
  • Access and use at age 18: When the beneficiary turns 18, the account converts into an IRA-like structure. From there, funds may be used for retirement, education, a first home purchase, or other qualified purposes, subject to applicable rules.

Why This Matters for Dental Families

Many dental professionals already use tools like 529 plans for education savings. Trump Accounts are different. They are not limited to education and are designed to support a broader range of long-term goals.

That flexibility can be appealing, particularly when combined with the early federal contribution and decades of potential investment growth. At the same time, these accounts introduce another layer of complexity into family financial planning.

For dental households, Trump Accounts should be evaluated alongside:

  • Existing education savings plans
  • Retirement strategies
  • Trust or estate planning structures
  • Cash flow demands tied to practice ownership

They are not an automatic replacement for other tools, but they may complement them when used thoughtfully.

A New Opportunity for Dental Practices as Employers

From a practice-owner perspective, Trump Accounts also introduce a new benefits consideration. Employers may contribute to these accounts for employees with eligible children, offering a family-focused benefit that supports long-term financial security without tying compensation solely to wages.

For dental practices competing for hygienists, assistants, and administrative staff in a tight labor market, this opens a new conversation about benefits that resonate with younger employees.

Potential advantages for practices include:

  • Offering a family-focused benefit that goes beyond traditional retirement plans
  • Differentiating the practice in recruiting, especially for early-career team members
  • Providing a benefit that supports long-term financial wellness without increasing immediate payroll costs in the same way wages do

Unlike health insurance or retirement plans, contributions to a child’s savings account can feel highly personal and values-driven, something many employees notice and remember.

That said, employer participation comes with administrative, tax, and compliance considerations that not every practice will want or need to offer. The key is understanding how it fits with your existing compensation and benefits philosophy.

Planning Questions for Dentists and Practice Owners

Whether you’re thinking about Trump Accounts for your own family, your employees, or both, these questions are worth exploring:

  • How does this account compare to a 529 plan or other long-term savings vehicles?
  • Would offering contributions as an employer create meaningful value for your team?
  • How would contributions be structured, tracked, and communicated?
  • How does this fit with practice cash flow, growth plans, and existing benefits?

Because contribution rules and tax treatment intersect with other planning areas, this is not a decision to make in isolation.

Bringing It All Together

Trump Accounts represent a meaningful shift in how long-term savings for children can be structured, and for dental practices, they introduce a potential new way to support employees at key life moments. Handled carefully, they can be a powerful planning tool. Handled casually, they can add unnecessary complexity.

If you’d like help evaluating how Trump Accounts fit into your personal financial plan or whether offering them as a benefit makes sense for your practice, we’re here to help. We specialize in working with dental professionals and dental practices and can help you assess both the opportunity and the implications before moving forward.

Podcast Recap: How Design Trends Are Changing Dental Practices and Patient Experiences

Key Takeaways

  • Dental practice design is increasingly focused on patient comfort, anxiety reduction, and overall experience, not just clinical efficiency.
  • Layout and square footage matter, but flexibility, flow, and shape of the space often matter more than size alone.
  • Lease terms and real estate decisions can significantly impact a practice’s financial health and long-term flexibility.
  • A practice’s physical space plays a meaningful role in resale value and buyer perception.
  • Thoughtful design and real estate planning support patient retention, staff experience, and future growth.

In this episode of Beyond Bitewings, Ash sits down with Mark Broson of Resource Commercial Advisors to explore how dental practice real estate and design trends have evolved, and what dentists should think about before signing a lease or building out a new space. While Mark shares insight from his work as a medically focused commercial real estate broker, the conversation centers on one core theme: today’s dental practices are being designed just as much for patient comfort and long-term value as they are for clinical efficiency.

One of the most noticeable shifts Mark highlights is the move away from sterile, medical-feeling offices toward environments that reduce anxiety and feel welcoming from the moment a patient walks in. Dentists are increasingly investing in soft lighting, natural materials, calming scents, and spa-like layouts that help patients feel at ease. These design choices aren’t just cosmetic; they shape the entire patient experience and can influence retention, referrals, and patients’ perception of the quality of care.

The discussion also dives into practical space planning considerations. While a large, concierge-style practice with multiple specialists under one roof may work for some, Mark explains that most dental offices today typically range from 2,000 to 3,500 square feet. A common planning guideline is approximately 400 square feet per operatory, but layout is just as important as size. Square-shaped spaces often offer more flexibility than long, narrow layouts, allowing room for consult areas, staff break rooms, and patient lounges without sacrificing efficiency.

Beyond design, Mark emphasizes the importance of thinking strategically about leasing versus owning. Leasing often makes more sense for practices focused on growth and flexibility, while ownership can work well for dentists planning long-term stability or family succession. Regardless of which path a dentist chooses, lease terms matter. Clauses such as rights of first refusal, tenant improvement allowances, and protections against forced relocation or demolition can have significant financial consequences if overlooked.

Another critical insight from the episode is how a practice’s physical space impacts its resale value. According to Mark, roughly one-third of a practice’s value is tied to aesthetics and real estate. Modern, well-maintained spaces are far more attractive to buyers than outdated offices, even when patient volume and clinical reputation are strong. In many cases, dentists nearing lease renewal can negotiate landlord-funded improvements that refresh their space without major out-of-pocket costs.

The episode closes with a clear message: dental real estate decisions are too important to navigate alone. From site selection and buildout to lease negotiations and long-term planning, having professionals who understand the dental industry can protect your investment and support your practice’s future. As Mark puts it, dentists deserve to be known for their work in the chair, not for avoidable real estate mistakes behind the scenes.

If you’re considering a new space, a renovation, or a lease renewal, this episode offers practical insight worth hearing, whether you’re early in your career or planning your next chapter.

Podcast Recap: Don’t Leave Money on the Table – How to Sell Smart to a DSO

Key Takeaways

  • DSOs value practices using EBITDA multiples, not collections.
  • A higher headline price often includes earn-outs and multi-year commitments.
  • Responding to unsolicited offers can significantly reduce leverage.
  • EBITDA calculations are frequently adjusted in ways that favor the buyer.
  • Exploring multiple offers creates optionality and protects long-term value.

Dental Service Organizations (DSOs) continue to expand rapidly, and many dental practice owners are receiving calls offering valuations far above what traditional peer-to-peer sales have historically delivered. While those offers can be tempting, a recent episode of Beyond Bitewings makes one thing clear: selling to a DSO is not a simple transaction, and without preparation, owners can leave substantial value on the table.

The episode features insights from Todd Wilson, formerly of Star Dental Partners, along with perspectives from Brannon Moncrief, of McLerran & Associates Practice Transitions, and Robert and Ash from the Edwards & Associates team. Rather than focusing on any one deal, the conversation centers on how DSOs think about value, risk, and control, and why that perspective differs so dramatically from how dentists often view their own practices.

Why DSOs Can Offer More And What That Really Means

Traditional dental practice sales are often based on a percentage of trailing collections. DSOs, however, value practices using a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization). Depending on the practice, those multiples can range from three to well over ten.

That difference explains why DSO offers can appear dramatically higher than independent buyer offers. Private equity groups backing DSOs are targeting a predictable return, often around 12 to 13 percent, and they structure deals mathematically to achieve that outcome. The higher price isn’t generosity; it’s engineering.

EBITDA Is the Battleground

One of the most important takeaways from the discussion is that EBITDA is rarely a fixed number. DSOs frequently adjust EBITDA calculations by excluding add-backs, questioning discretionary expenses, or allocating costs in ways that reduce the final figure.

Even small adjustments can have outsized consequences. A $50,000 change in EBITDA, when multiplied by seven, can reduce a sale price by $350,000. Larger practices can see swings in the millions. This is why controlling the EBITDA narrative and understanding how it’s calculated is critical before accepting any offer.

What Happens After the Sale

Another major difference between selling to a DSO and selling to an independent buyer is the post-sale commitment. In a peer-to-peer transaction, sellers typically transition out within a few months. With DSOs, sellers are often required to stay on as associate doctors for three to five years.

In many cases, only a portion of the sale price is paid upfront, with the remainder tied to earn-outs over time. Leaving early can mean forfeiting a significant share of the promised value. While ongoing compensation continues, these structures fundamentally change the seller’s role, autonomy, and risk profile.

The Risk of Saying Yes Too Soon

A recurring theme throughout the episode is the danger of responding to unsolicited offers without representation. DSOs are designed to create proprietary deal flow, often engaging owners in “informal” conversations that quickly turn into binding negotiations.

Without exploring multiple buyers and deal structures, owners lose leverage. Creating optionality, by understanding motivations, comparing offers, and aligning the deal with personal and professional goals, can dramatically improve outcomes. The right deal isn’t just about price; it’s about structure, timing, and long-term fit.

A More Strategic Way Forward

DSOs are not going away. For some dental practices, they can be an excellent partner. But the episode underscores that preparation matters. Understanding valuation mechanics, earn-outs, lease considerations, and post-sale expectations gives owners control over decisions that can shape their financial future.

The bottom line: selling to a DSO should be a strategic choice, not a reactive one.

Why Dental Practices Need Better Financial Reporting, Not Just Tax Returns

Key Takeaways

  • Tax returns are compliance tools; financial reports are decision-making tools.
  • Many dental practices lack visibility into cash flow, margins, and performance drivers.
  • Better reporting supports smarter growth, staffing, and investment decisions.
  • Clean financial statements matter long before a practice is sold or financed.

Dental practice owners sometimes assume that once the tax return is filed, their financial picture is complete. In reality, a tax return answers only one question: what you owe after the year is already over. It does very little to help you understand how your practice is performing while decisions are still being made.

That gap becomes more obvious as practices grow. A tax return summarizes the past. Financial reporting, when done well, gives you visibility into the present and a clearer view of what’s coming next.

What Tax Returns Miss

Tax returns are built around IRS rules, not operational insight. They consolidate income and expenses in ways that make sense for compliance but often blur the details that matter most to owners. Monthly performance trends, cash flow timing, and margin pressure rarely stand out on a return finalized months after year-end.

This is why many dentists feel busy and profitable yet unsure whether growth is actually improving their financial position. The information they need simply isn’t surfaced in a tax document.

The Role of Ongoing Financial Reporting

Better financial reporting changes the conversation. Regularly reviewed profit-and-loss statements and balance sheets help owners understand how revenue is translating into profit, whether expenses are scaling appropriately, and how cash moves through the practice over time.

This visibility supports better decisions around hiring, equipment purchases, scheduling, and expansion. Instead of reacting to year-end results, owners can adjust course while there’s still time to do so.

Why Reporting Matters Beyond the Owner

Clean, consistent financial statements also matter to people outside the practice. Lenders, buyers, and potential partners rely on financial reports, not tax returns, to evaluate stability, risk, and value. When reporting is inconsistent or unclear, it raises questions and can complicate financing or slow down transactions.

Even if a sale isn’t on the horizon, strong reporting preserves optionality. It keeps doors open and reduces stress when opportunities or challenges arise.

From Compliance to Clarity

Tax returns will always be necessary. But they should be the result of good financial reporting, not the only window into your practice’s finances.

When reporting is accurate, timely, and reviewed consistently, it supports everything else: tax planning, cash management, growth decisions, and long-term strategy. At Edwards & Associates, we help dental practices move beyond compliance and toward clarity so owners can lead with confidence instead of guesswork. Reach out to us to talk about how we can support your practice finances so you can focus on your patients.