Podcast Recap: Creating a Culture of Radical Accountability – Part 2

Key Takeaways

  • Communication is ultimately the responsibility of the leader.
  • Teams perform better when they understand how their work affects others in the workflow.
  • Every process should have a clearly defined owner to avoid confusion.
  • Inspiration, not just motivation, helps drive stronger engagement from employees.
  • Accountability requires consistent standards across the entire team, including leadership.
  • Leaders who model the behaviors they expect create stronger, more accountable teams.

In this second installment of our conversation on Beyond Bitewings, Ash continues the discussion with leadership expert Dave Rosenberg about how organizations build a culture of accountability that actually works.

If you missed the first episode, be sure to read or watch Part 1, where Dave introduced the foundational framework for accountability and why many organizations struggle to implement it.

In this episode, the conversation moves from theory to practice, focusing on leadership behaviors, communication, and the mindset that drives real accountability inside a team.

For dental practice owners, these ideas directly affect how teams work together, solve problems, and deliver consistent patient care.

Communication Is the Leader’s Responsibility

One of Dave’s most important points is that communication is ultimately the responsibility of the leader.

Leaders sometimes believe that once a message has been delivered, the responsibility shifts to the team to understand it. In reality, effective leadership means ensuring the message is actually received and understood.

A simple way to confirm this is by asking open-ended questions such as:

  • What do you understand your role to be here?
  • What are we trying to accomplish?
  • Why are we doing it this way?

When team members clearly understand the intent behind decisions, they are better able to adapt when things inevitably change. As Dave notes, no plan survives contact with reality. But when people understand the mission, they can still move in the right direction when unexpected challenges arise.

Why Teams Need the Bigger Picture

Accountability also improves when team members understand how their actions affect others in the workflow.

In a dental practice, this could involve everyone from the front desk and treatment coordinators to hygienists, assistants, and billing staff. When employees understand how their work impacts others downstream, they are more likely to communicate changes and avoid creating problems for the rest of the team.

This awareness helps shift the focus from simply completing tasks to understanding how each role contributes to the overall success of the practice.

Accountability Requires Clear Ownership

Another concept Dave discusses is the value of an accountability map.

The idea is straightforward: every process should have a clearly defined owner. That owner isn’t necessarily the only person doing the work, but they are responsible for ensuring the process is completed correctly.

Without clear ownership, teams often fall into the trap of assuming someone else will handle an issue. When everyone is responsible, accountability tends to disappear. By clearly assigning ownership, leaders reduce confusion and eliminate the finger-pointing that often occurs when something goes wrong.

Motivation vs. Inspiration

Dave also makes an important distinction between motivation and inspiration.

Motivation often comes from external rewards like pay, bonuses, or benefits. Inspiration, however, is internal and comes from believing in the purpose of the work.

In dentistry, that purpose is often easy to see. Dental professionals help patients improve their health, comfort, and confidence every day.

When team members understand the value they bring to patients and how their role contributes to that outcome, they are more likely to go beyond the minimum requirements of the job. Hiring people who connect with that purpose, and helping them see how their work supports it, can significantly strengthen a culture of accountability.

The Danger of “Exceptional” Exceptions

One leadership challenge many businesses face involves employees who perform well in one area but ignore standards in others.

Sometimes these individuals are allowed to operate outside established procedures because they appear highly productive. Over time, this creates a dangerous precedent.

If one person is allowed to ignore the rules, others will begin to question why the rules apply to them. As Dave explains, if standards do not apply to everyone, they eventually stop applying to anyone.

Consistency is essential to maintaining accountability across the entire team.

Leaders Must Model the Standard

Perhaps the most important leadership principle discussed in this episode is that leaders must hold themselves to the same standards they expect from their teams.

If leaders regularly ignore the expectations they set, such as showing up late to meetings or failing to respect others’ time, it becomes difficult to enforce those standards with employees.

Accountability begins with leadership behavior. When leaders consistently model the standards they expect, the rest of the organization is far more likely to follow.

The First Step Toward Improving Accountability

For practice owners who want to strengthen accountability within their teams, Dave recommends starting with honest self-reflection.

Consider the behaviors you expect from your team and ask whether you consistently demonstrate those behaviors yourself. From there, leaders can have an open conversation with their team about the standards they want to establish moving forward.

This type of transparency helps build trust and creates a culture where accountability is shared rather than imposed.

How to Tell If Accountability Is Improving

In many cases, the signs of stronger accountability appear gradually. Teams begin communicating more clearly. Mistakes and rework become less frequent. Processes become more consistent.

Improvement rarely happens overnight, but as expectations become clearer and behaviors align with those expectations, accountability begins to take hold throughout the organization.

Why This Matters for Dental Practices

At the end of the episode, Dave offered a simple but powerful reminder for leaders:

Be the team member you want your team members to be.

When leaders demonstrate the standards they expect, communicate clearly, and help employees understand the purpose behind their work, accountability becomes much easier to sustain.

Leasing a Business Vehicle? What Dentists Should Know About the IRS Lease Inclusion Rule

Key Takeaways

  • The IRS lease inclusion rule slightly reduces deductions for certain leased business vehicles.
  • The adjustment exists to keep the tax treatment of leasing and purchasing vehicles relatively consistent.
  • The lease inclusion amount depends on the vehicle’s value, lease year, and IRS inclusion tables.
  • As with purchased vehicles, deductions depend on the percentage of business use.
  • Dentists deciding whether to lease or buy a vehicle should consider tax rules alongside cash flow and long-term planning.

When dental practice owners evaluate vehicle options for their business, the conversation often turns to whether it’s better to buy or lease. If you’re weighing your options, it’s also important to understand the depreciation limits that apply when a dental practice buys a vehicle. We explain those rules in detail in our related article, Buying a Business Vehicle? 2026 Depreciation Limits Dentists Should Know.

From a cash flow perspective, leasing can feel simpler. Monthly payments are predictable, and there is often less upfront cost compared to purchasing a vehicle outright.

But from a tax perspective, leasing has its own rules, including something called the lease inclusion amount.

Understanding how this works can help dentists make better decisions about how vehicles fit into their overall tax planning.

Why the IRS Created the Lease Inclusion Rule

Passenger vehicles used in business are subject to depreciation limits under Internal Revenue Code Section 280F. These limits restrict how quickly businesses can deduct the cost of a purchased vehicle.

Without additional rules, leasing could become a workaround. A business could lease a high-value vehicle and deduct the full lease payment each year instead of being subject to depreciation caps.

To prevent that imbalance, the IRS created the lease inclusion rule. The rule requires businesses leasing certain passenger vehicles to add a small amount back into income each year, which slightly reduces the total deduction related to the lease.

This adjustment helps keep the tax treatment of leasing and purchasing vehicles relatively consistent. (IRS Revenue Procedure 2026-15; Internal Revenue Code §280F)

How the Lease Inclusion Amount Works

The lease inclusion amount is determined using IRS tables that are updated annually.

The calculation is based on three main factors:

  • The fair market value of the vehicle when the lease begins
  • The year of the lease
  • The IRS inclusion table for that calendar year

Revenue Procedure 2026-15 includes updated tables for vehicles first leased in calendar year 2026. The tables list ranges of vehicle values and assign a small dollar amount that must be included in income each year of the lease.

This amount increases gradually during the lease term. In practice, the adjustment usually represents a relatively small reduction in the overall lease deduction.

Business Use Still Determines the Deduction

As with purchased vehicles, the amount a dental practice can deduct depends on how much the vehicle is used for business purposes.

If a vehicle is used partly for personal travel and partly for practice-related activities, the deduction must be allocated based on the business-use percentage. The same percentage applies to the lease inclusion amount.

For example, if a vehicle is used 80% for business, only 80% of the lease payments are deductible, and only 80% of the lease inclusion adjustment would apply.

The IRS requires adequate records to support business use, such as mileage logs or similar documentation. (IRS Publication 463, Travel, Gift, and Car Expenses)

When Leasing Might Still Make Sense

Despite the lease inclusion rule, leasing can still make sense for some dentists.

Common situations include:

  • Dentists who prefer lower upfront costs and predictable payments
  • Practice owners who replace vehicles frequently
  • Owners who want to avoid long-term asset ownership

The tax treatment alone rarely determines whether leasing or purchasing is the better choice. Cash flow, business use, and long-term financial planning all play a role.

Planning Before Signing the Lease Matters

Because the lease inclusion rule depends on the vehicle’s value and the lease start date, it’s helpful to evaluate the tax impact before finalizing a lease agreement.

For dental practice owners, vehicle decisions often intersect with broader planning issues such as:

  • Practice structure and entity selection
  • Overall tax strategy
  • Business-use documentation
  • Long-term financial planning

Reviewing the numbers ahead of time can help ensure the vehicle decision supports both operational and tax goals.

Leasing a vehicle through your dental practice can still provide meaningful deductions, but it comes with its own tax rules. The IRS lease inclusion adjustment exists to keep the tax treatment of leased and purchased vehicles relatively balanced.

For dentists deciding between leasing and buying, understanding both sets of rules for depreciation limits and lease inclusion adjustments can make it easier to choose the option that best fits the practice’s financial strategy.

Buying a Business Vehicle? 2026 Depreciation Limits Dentists Should Know

Key Takeaways

  • The IRS has updated 2026 depreciation limits for passenger vehicles used in business.
  • Even with bonus depreciation, passenger automobiles remain subject to Section 280F deduction caps.
  • Dentists who purchase higher-value vehicles may not be able to deduct the full cost as quickly as expected.
  • Vehicle deductions depend heavily on documented business use, including accurate mileage records.
  • Dentists considering whether to buy or lease a vehicle through their practice should review the tax implications in advance.

Many dentists use vehicles in their business, whether it’s traveling between multiple offices, visiting labs or suppliers, attending continuing education, or handling administrative responsibilities for the practice.

Because vehicles can represent a significant expense, tax deductions related to them often become part of broader tax planning. Each year, the IRS adjusts the amount that can be deducted for passenger vehicles used in a business.

For 2026, those limits have been updated again. While the increases are modest, they still matter for practice owners considering whether to buy, finance, or lease a vehicle through the practice.

Why Vehicle Depreciation Has Limits

Under Internal Revenue Code Section 280F, the IRS places caps on how quickly a business can depreciate passenger vehicles. These limits exist because vehicles are considered “listed property,” meaning they are often used for both business and personal purposes. Instead of allowing businesses to write off the entire cost immediately, the IRS restricts the deduction amount each year.

These limits apply to passenger automobiles used for business, including cars, trucks, and vans placed in service after September 27, 2017. The limits are adjusted annually for inflation. (IRS Revenue Procedure 2026-15)

2026 Depreciation Limits for Business Vehicles

For vehicles placed in service during 2026, the maximum depreciation deductions are:

If bonus depreciation is used:

  • Year 1: $20,300
  • Year 2: $19,800
  • Year 3: $11,900
  • Each year after: $7,160

If bonus depreciation is not used:

  • Year 1: $12,300
  • Year 2: $19,800
  • Year 3: $11,900
  • Each year after: $7,160

These figures represent modest increases from 2025 and reflect adjustments tied to the automobile component of the Chained Consumer Price Index for Urban Consumers (C-CPI-U). 

While these limits may seem technical, they can influence whether purchasing a vehicle provides the tax outcome you expect.

What This Means for Dental Practice Owners

For dentists, vehicles are rarely the largest tax deduction in a practice. However, they often play a role in broader tax planning.

Common scenarios include:

  • A dentist who owns multiple practice locations and travels between them.
  • Practice owners who use a vehicle to visit labs, vendors, or satellite offices.
  • Dentists attending continuing education programs or professional meetings.
  • Owners running administrative tasks related to the practice.

In these situations, vehicle use may qualify as a legitimate business expense, but the depreciation caps still apply. That means a dentist who purchases a high-value vehicle for business purposes may not be able to deduct the full cost as quickly as expected.

Bonus Depreciation Still Plays a Role

Bonus depreciation can increase the first-year deduction for vehicles, but passenger automobile limits still apply.

Under current law, bonus depreciation allows businesses to deduct a portion of an asset’s cost in the first year it is placed in service. The percentage allowed has been gradually decreasing after the Tax Cuts and Jobs Act expanded it to 100%. Even with bonus depreciation available, the Section 280F caps prevent passenger vehicles from being fully written off immediately.

For certain heavier vehicles used primarily for business, different rules may apply under Section 179 or other depreciation provisions. The specific treatment depends on factors such as vehicle weight and business use percentage.

Leasing Has Its Own Tax Rules

Some dentists choose to lease a vehicle through the practice rather than purchase one, especially when they prefer predictable payments or plan to replace vehicles more frequently.

However, leasing does not completely avoid the tax limitations that apply to passenger vehicles.

Under Section 280F of the Internal Revenue Code, the IRS applies what is known as a lease inclusion amount for certain higher-value vehicles. This rule slightly reduces the deduction for leased vehicles to keep the tax treatment of leasing and purchasing relatively consistent.

The calculation depends on the vehicle’s value when the lease begins and the IRS inclusion tables for that year. Revenue Procedure 2026-15 includes updated inclusion tables for vehicles first leased in 2026.

Because the rules for leased vehicles are calculated differently from depreciation limits, we’ll walk through them in more detail in a separate article: Leasing a Business Vehicle? What Dentists Should Know About the IRS Lease Inclusion Rule.

Business Use Still Matters

Regardless of whether a vehicle is purchased or leased, deductions depend heavily on how much the vehicle is used for business.

If a vehicle is used partly for personal purposes, only the business-use portion of expenses or depreciation is deductible.

Maintaining proper mileage logs and documentation is important for substantiating business use if questions arise. The IRS specifically notes that listed property deductions require detailed records to support the percentage of business use. (IRS Publication 463)

Final Thoughts

The IRS’s updated 2026 depreciation limits are a reminder that vehicle deductions rarely work the way people expect. Even though the limits increased slightly this year, passenger automobiles remain subject to caps that restrict how quickly the cost can be written off.

For dentists considering a vehicle purchase or lease through their practice, it’s worth reviewing the tax implications in advance. Small planning decisions can affect deductions not just in the first year, but for several years afterward.

If you are evaluating a vehicle purchase, adding another location, or simply want to understand how these rules apply to your practice, discussing the details with us can help ensure the decision fits into your overall financial strategy.

Is Your Accounting Firm the Right Fit for Your Dental Practice?

Key Takeaways

  • Filing your tax return on time does not mean your accounting relationship is strategic or proactive.
  • Dental practices require industry-specific financial insight, including overhead benchmarking and cash flow analysis.
  • If your CPA only engages at tax time, you may be missing planning opportunities that affect profitability and long-term value.
  • Clean, timely bookkeeping is essential for accurate tax reporting and confident decision-making.
  • You should understand your numbers clearly without jargon or confusion.
  • Choosing an accounting firm that works exclusively with dental practices can provide deeper, more relevant guidance.

Most dentists don’t wake up thinking about their accounting firm.

If your tax return gets filed on time and your CPA answers emails eventually, it’s easy to assume everything is working. After all, your focus is patient care, team leadership, and keeping the schedule full. Accounting may feel like something that simply needs to “get done.”

But the right accounting relationship should do more than produce a tax return or monthly books. It should give you clarity, confidence, and control over the financial engine of your practice. If it doesn’t, you may be operating with blind spots you don’t even realize are there.

Indicators Your Current Accounting Firm May Not Be the Right Fit

You’re not clear on what they actually do for you

Every accounting relationship should begin with a clearly defined scope of services. The AICPA emphasizes the importance of engagement letters that outline responsibilities, limitations, and expectations so there are no misunderstandings later.

If you can’t confidently explain what’s included and not included in your monthly services, who is responsible for bookkeeping accuracy, and what happens if something goes wrong, then the relationship may be too vague to protect you. A well-defined scope isn’t about paperwork. It’s about accountability.

Your relationship is tax-focused, but your business decisions aren’t

Filing a tax return is compliance. Running a dental practice requires financial strategy.

If your accounting firm only engages with you during tax season, you may not be getting the guidance you need for decisions such as:

  • Hiring another hygienist
  • Investing in new technology
  • Adjusting fees
  • Adding an associate
  • Reducing insurance participation
  • Planning for an eventual transition

Tax preparation looks backward. Business strategy looks forward. If no one is helping you connect those two, you’re likely missing opportunities or exposing yourself to risk.

Your books don’t tell a clear story

The IRS is clear that business owners must maintain records that support income and deductions and clearly reflect business activity.

If your financial records regularly require last-minute cleanup, reclassification, or reconstruction at tax time, that’s a signal that your accounting system isn’t functioning properly.

In a dental practice, that can be especially problematic. Production, collections, payroll, lab costs, and supply expenses move quickly. Without clean monthly reporting, you may not notice overhead creep or margin compression until it becomes significant. You shouldn’t feel unsure about whether your books are accurate. You should trust them.

You don’t understand your overhead or how it compares to other dental practices

Dental practices operate on relatively tight margins. Industry sources commonly cite average overhead in the low 60% range for general practices, with variation depending on specialty and location. That benchmark doesn’t dictate how your practice should run. But without context, numbers lack meaning. 

If your accounting firm never references industry norms, never discusses trends in your expense categories, and never helps you interpret your results, you’re operating without a frame of reference. You don’t need generic advice. You need informed interpretation.

Cash feels unpredictable even when production is strong

Profit and cash flow are not the same thing. Loan payments, equipment purchases, quarterly tax estimates, and timing differences in insurance collections can create tension even in a profitable practice.

If your accounting firm can’t clearly explain where your cash is going, or why certain months feel tight, that’s not just frustrating; it’s limiting your ability to plan confidently. A strong accounting partner should be able to translate your financial statements into plain language and connect them to operational reality.

Data security is treated casually

Dental practices are already highly regulated when it comes to patient information. Your financial and tax data deserve the same level of care. The Federal Trade Commission’s Safeguards Rule highlights the importance of maintaining a written information security program to protect sensitive data.

If your accounting firm cannot clearly articulate how they protect client data beyond saying “we’re careful,” that’s worth examining. Security isn’t optional; it’s part of the service.

You leave conversations more confused than when you started

This may be the simplest indicator of all. When you ask a question about taxes, compensation, debt, or practice value, do you receive clarity or jargon?

Dentists are highly educated professionals. You shouldn’t feel intimidated in financial conversations. If you consistently walk away unsure of what was decided or why, the communication gap may be limiting your growth.

Questions to Ask When Evaluating an Accounting Firm

If you’re reconsidering your current relationship or evaluating options, here are a few practical questions to guide the discussion:

  • What percentage of your clients are dental practices?
  • How do you help owners interpret monthly results, not just prepare tax returns?
  • What does your month-end close process look like?
  • How do you ensure our books support our tax reporting cleanly?
  • How do you protect client data?
  • Who will actually be doing the work on my account?

The AICPA recommends interviewing CPAs and asking direct questions about specialization, experience, and client expectations before engaging a firm. You are hiring a strategic partner, not just a preparer.

Your Practice Deserves More Than Basic Compliance

Many dentists stay with an accounting firm out of habit, in part because changing feels disruptive. But the cost of staying in the wrong relationship can be much higher than the inconvenience of transitioning.

The right accounting partner should help you:

  • Understand your numbers
  • See risks before they become problems
  • Make informed hiring and investment decisions
  • Build a practice that supports your long-term goals

If your current firm isn’t providing that level of clarity and confidence, it may be time to reevaluate the fit. At Edwards & Associates, we work exclusively with dental practices, helping owners move beyond basic compliance to truly understand their numbers and make informed, strategic decisions. Reach out if you’d like to learn more. 

Podcast Recap: Creating a Culture of Radical Accountability – Part 1

Key Takeaways

  • Accountability challenges in dental practices are usually system failures, not personality flaws.
  • Clear, documented processes create consistent results across scheduling, insurance, treatment presentation, and patient communication.
  • A culture of radical accountability rests on three pillars: mechanics (systems), mindset (purpose), and modeling (leadership example).
  • Responsibility is responding to a situation; accountability is following and explaining a defined process.
  • Dentist-owners strengthen performance by removing barriers to success instead of defaulting to blame.
  • Clinical excellence alone does not create a high-performing practice; systems and leadership discipline do.

In this episode of Beyond Bitewings, Ash welcomed Dave Rosenberg, a leadership advisor who works with executive teams across the country to help them build what he calls a “culture of radical accountability.” With a background as a Naval officer and former company president, Dave has spent decades leading organizations and now focuses on helping leaders create systems that produce consistent results.

For dentists and practice managers, this conversation is especially relevant. In a dental practice, performance is never just about clinical skill. It’s about how the entire team operates, from scheduling and insurance to treatment presentation and patient follow-up. And according to Dave, when accountability problems show up, they are rarely “people problems.” They are almost always system problems.

Accountability Is a Process, Not a Personality

One of the most important distinctions Dave makes is that accountability should not be confused with personal character. Many leaders assume that if someone isn’t performing consistently, they lack motivation or work ethic. In reality, inconsistency is often the result of unclear expectations or undocumented processes.

In the military, Dave explains, ownership was built into structure. Everyone knew their role. Procedures were defined. Standards were explicit. When he transitioned into private-sector leadership, he noticed that many organizations relied on informal training and ad hoc direction. People were left to “figure it out,” and predictably, results varied.

In dentistry, this might look like:

  • Different team members handling insurance follow-up differently
  • Treatment plans being presented inconsistently
  • No clear standard for patient communication or schedule management

Without defined processes, even talented employees will produce uneven outcomes. Over time, that variability affects profitability, patient satisfaction, and team morale.

The Three Pillars of a Culture of Accountability

Dave describes three essential components that create sustainable accountability: mechanics, mindset, and modeling.

  1. Mechanics come first. These are the documented systems, job descriptions, training protocols, and performance standards that define how work gets done. If expectations are unclear or undocumented, team members cannot be held accountable to them. In many dental practices, job descriptions don’t fully match reality, and training is informal. That gap creates stress and confusion. When expectations are precise and training is structured, accountability becomes fair and measurable.
  2. Mindset follows structure. Team members need to understand why their work matters. In a dental practice, that purpose extends beyond tasks. The front desk influences patient retention. The hygienist influences long-term treatment acceptance. Insurance coordination affects cash flow. When people see how their work connects to patient outcomes and practice success, they are more likely to take ownership. Accountability becomes collaborative instead of defensive.
  3. Modeling completes the system. Leadership behavior sets the ceiling. If a dentist-owner runs behind schedule, avoids difficult conversations, or ignores documented processes, the team will follow that example. Leaders cannot demand discipline they do not demonstrate. Accountability must be visible at the top.

Responsibility vs. Accountability

Another powerful insight from the episode is the distinction between responsibility and accountability.

Responsibility is the ability to respond. Accountability is the ability to follow and explain a defined process.

For example, a team member may be responsible for insurance claims. They are accountable for following the documented claim process correctly. If something goes wrong, the right question is not “Who messed up?” but “What steps were taken, and where did the process break down?”

Sometimes the employee didn’t follow the process. Other times, the process itself is flawed. That distinction matters. When practices examine systems instead of assigning blame, they strengthen operations instead of weakening culture.

The Leader’s Real Job

Dave reframes leadership in a way that applies directly to dental practice owners: the leader’s job is to remove barriers to success.

Barriers may include unclear expectations, outdated systems, staffing gaps, or a lack of training. When something breaks down in the practice, whether it’s production, collections, or team morale, the first question should not be “Who failed?” but “What barrier allowed this to happen?”

This shift changes the emotional tone of accountability conversations. Instead of being punitive, they become improvement-oriented. The message becomes, “You are capable of more, and I’m here to help remove what’s in your way.”

Why This Matters for Dental Practices

Dentistry is unique in that most owners entered the profession for clinical reasons, not operational ones. But clinical excellence alone does not build a high-performing practice. Systems do.

A culture of radical accountability means:

  • Clear processes that are consistently followed
  • Team members who understand their role in the bigger picture
  • Leaders who model the standards they expect from others
  • Conversations focused on improvement rather than blame

When those elements are in place, practices experience more predictable performance, stronger team cohesion, and less stress at the leadership level.

In Part 2 of this discussion, Dave will dive deeper into how leaders can motivate accountability and develop teams that take ownership willingly. For dentists looking to strengthen operations and improve long-term performance, this framework offers a practical starting point: build the system first, and accountability will follow.

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.