Episode Overview

Episode Title: How Top Dental Practices Plan Taxes, Budgets and Growth
Podcast: Art of Dental Finance and Management
Host: Art Wiederman, CPA
Guest: David Goodman, Dental Practice Solutions Team Leader at PKF O’Connor Davies
Date: January 28, 2026

This episode aims to demystify best practices for dental practice financial management from the perspective of a seasoned CPA who works exclusively with dentists. Art Wiederman and his guest David Goodman discuss actionable strategies in budgeting, tax planning, practice metrics, and succession planning tailored specifically to dental practitioners. Through candid conversation and real-world examples, they offer listeners a roadmap for achieving greater profitability and peace of mind in their practices.

Key Discussion Points & Insights

1. The Journey and Mindset of a Dental CPA

• David Goodman’s Background:

  • His charitable work, notably over 30 trips to New Orleans post-Katrina and disaster relief efforts elsewhere.
  • Inspiration growing up in a family CPA practice, with a focus on dentists since the early 1970s.
  • Value of legacy and commitment to both professional service and community aid.
  • [05:03–07:39]

• Quote:

  “It’s a big part of who I am and giving back and helping. So I enjoy doing that not only for dentists, but also for my community.”
  — David Goodman [05:45]

2. Increasing Profitability Without Working Harder

• Tactics for Dentists:

  • Increase fees in line with rising staff costs, rents, and other overhead. Insurance-based practices should also raise submitted fees, nudging PPO reimbursement rates upward.
  • Benchmark overhead using resources like Dental Practices by the Numbers.
  • Regularly compare categories of spending for inefficiencies and duplications.
  • Focus on higher-value clinical procedures (e.g., perio maintenance) that benefit both practice and patients.
  • [09:48–13:24]

• Quote:

  “If you don’t make changes to your revenue, you’re going to have to work harder or you’re going to make less because you’re going to take those cost increases and... not the doctor.”
  — David Goodman [09:48]

3. Importance of Proactive Overhead and Tax Planning

• Year-Round Approach:

  • Avoid last-minute “shoebox” tax prep; meaningful planning must happen throughout the year, not just at tax time.
  • Regular reviews of financials can help uncover missed savings or efficiencies, especially in the wake of post-pandemic cost control awareness.
  • Every percentage point saved in overhead directly impacts owner income.
  • [14:01–15:15]
  • [15:15–18:20]

• Quote:

  “For me, I’m meeting with my clients multiple times per year, reviewing their overhead and sharing with them some ideas about... overhead items and try and trim those costs.”
  — David Goodman [14:13]

4. Common Planning Mistakes & Succession Readiness

• Estate and Disaster Planning:

  • Many dentists neglect basic estate planning, wrongly believing it’s only for large estates.
  • Failing to document passwords, banking access, emergency contacts, or business continuity plans can devastate a practice and family if tragedy strikes.
  • Coverage or disability coverage groups among local colleagues are essential to maintain practice value in emergencies.
  • [15:58–17:47]

• Quote:

  “A dental practice that is not being operated by a doctor loses significant value every single day.”
  — David Goodman [17:19]

5. Strategic & Year-Round Tax Reduction

• Notable 2026 Tax Law Changes:

  • Expanded SALT deduction for AGI under $500k: up to $40,000 deductible; phase-out between $500–$600k.
  • Use of pass-through entity tax for high earners (S-corps, partnerships).
  • “Trump Savings Account” for children born in 2025 (available July 4, 2026).
  • Expanded 529 plan uses for continuing education or certifications, even for clinical CEs.
  • Section 179 and Bonus Depreciation: 100% expensing of most dental equipment, made permanent, but must manage S-corp basis issues for full deduction.
  • [20:42–31:17]

• Entertaining Quote:

  “My bag is packed under my desk and I’m ready to follow you right into the prison… believe me, the stuff I talk about is on the up and up.”
  — David Goodman [20:42]

• Practical Recommendations:

  • Documented family hiring practices (children on payroll), with clear job duties and reasonable pay.
  • Leveraging Health Savings Accounts (HSAs) as long-term tax-advantaged savings.
  • Maximizing Roth IRA and Roth 401(k) options, especially during income troughs or before RMDs begin to optimize tax-free growth and inheritance.
  • [31:17–39:00]

• Memorable Anecdote:

  Doctor used cost segregation to lower income for a year and convert hundreds of thousands from IRA to Roth at a lower tax rate. [38:59]

6. The Power of Dental-Specific Advisors

• Value of the ADCPA:

  • Academy of Dental CPAs as a nationwide resource for dental-specific financial expertise.
  • Wealth of benchmarking, peer support, and clinical integration knowledge that general CPAs often lack.
  • [42:37–43:46]

• Quote:

  “I have never met a more knowledgeable, trusting group of people who are willing to share like, everything about their practices and about how they’re helping dentists so that we as a group can help dentists throughout North America now... and having the income and quality of life that they desire.”
  — David Goodman [43:03]

• Memorable Story:

  • Art’s White Castle craving on the NJ Turnpike as an example of camaraderie among ADCPA members. [44:00]

7. Metrics & Key Performance Indicators (KPIs)

• Practice Analytics to Drive Growth:

  • Analyze hygiene profitability (should be 25–35% of collections); flag low profit by comparing pay to service fees and software usage.
  • Use benchmarks to compare year-on-year performance and inter-practice results.
  • Track case acceptance rates (goal: 60–75%); scrutinize variances between practitioners and revisit unfinished treatment in patient charts as an immediate production boost.
  • Emphasize leadership and culture to retain staff and maintain high performance; people will often stay for culture, not just money.
  • [45:44–52:34]

• Quote:

  “Most hygienists are looking for more money not because they want more money. They want to feel better about themselves. And working in an environment where they have the opportunity to grow... may not necessarily leave for the money because they want to come to a place where they like working and they have a purpose in the organization.”
  — David Goodman [49:09]

8. Action Steps for a Profitable and Sustainable Practice

• Yearly Planning:

  • Review dormant treatment plans in charts and follow up—turn “left-in-the-chart” dentistry into new production.
  • Plan your working, vacation, CE, and holiday days to set and achieve realistic production and income goals.
  • Calculate the collections and production needed per day for both owner and hygiene to meet financial goals.
  • Implement learned tax-saving strategies and consult with a dental CPA.
  • [52:34–55:39]

• Quote:

  “Setting those goals gives you an idea of how you need to be scheduled, scheduling yourself, and how you need to be producing dentistry so that you can have the income and quality of life that you want.”
  — David Goodman [54:44]

Timestamps for Noteworthy Segments

| Timestamp | Segment Description | |------------|-----------------------------------------------------------------| | 05:03 | David Goodman’s charitable work and professional background | | 09:48 | Strategies to avoid working harder and making less | | 14:01 | Why year-round financial planning beats last-minute shoeboxing | | 15:58 | Avoiding costly estate and succession planning mistakes | | 20:42 | Practical tax planning steps, including 2026 law changes | | 31:17 | Additional tax strategies: hiring kids, HSAs, Roths | | 42:37 | The unique value of the Academy of Dental CPAs | | 45:44 | Using metrics to drive clinical and business performance | | 52:34 | Action steps to start the year strong (goal setting, follow-up) |

Tone & Style

The conversation is energetic, accessible, and generously sprinkled with good humor (“My bag is packed under my desk and I’m ready to follow you right into the prison…”). Both speakers are relatable, unafraid to “geek out” on tax codes, and balance technical detail with real-world dental anecdotes and mutual respect. There’s a notable warmth and camaraderie throughout, reinforced by occasional personal stories.

Notable Quotes

• David Goodman:

  “If you don’t make changes to your revenue, you’re going to have to work harder or you’re going to make less...” [09:48]

• Art Wiederman:

  “Doctors, if you have a million-dollar practice and you can cut 1% off your overhead... that goes right in your pocket, that can go to fund a retirement plan...” [15:15]

• David Goodman:

  “A dental practice that is not being operated by a doctor loses significant value every single day.” [17:19]

• Art Wiederman:

  “Doctors, you are legally allowed and encouraged to pay the minimum amount of income tax. Let me repeat that. The minimum amount of income tax allowed by law.” [20:28]

Summary of Key Takeaways

• Regular, proactive financial review is essential to control costs and maximize profitability; don’t wait for tax season.
• Invest in the right equipment and staff—but only if ROI makes sense; don’t buy tech for tax reasons alone.
• Reduce risk by planning not only for taxes and growth, but for disaster and succession contingencies.
• Work with dental-specific financial advisors who understand industry nuances, especially with changing tax laws.
• Use data-driven decision-making: set clear annual goals for collections, production, and case acceptance, and consistently measure against them.
• Foster an office culture where staff are motivated by mission and growth, not just paychecks.

This summary captures the essential content and actionable lessons from the episode, with key moments and quotes highlighted for quick reference. Listeners and non-listeners alike will leave with a clear sense of how to improve their dental practice’s financial health in 2026 and beyond.