Your business and personal finances deserve equal focus. Start the new year by treating both with intent: making smart decisions for your practice today while planning for your financial future tomorrow.

By Angie Svitak, CPA, IAR

THE NEW YEAR is a perfect time to take control of your financial future. Whether you want to improve business cash flow or build personal wealth, smart steps now can lead to a stronger 2026. Here’s a four-point checkup on how to position your practice—and yourself—for success.

Strengthen the foundation of your business.
1. Review and reset financial goals. Set clear monthly and annual targets based on practice-specific key performance indicators to drive sustainable growth. For example, to improve profitability, focus on increasing the number of patient visits, boosting production per visit with same-day dentistry and increasing fees, strengthening collections and reducing overhead.

We give our clients a monthly report that tracks key metrics against the targets set at the beginning of the year. Reviewing your profit-and-loss statement each month helps you stay proactive.

2. Plan for fluctuating cash flow. Practice owners face cyclical shifts—the summer rush, the fall lull, year-end FSA spending. What matters is how you manage them. If you don’t know your practice’s production patterns, review two to three years of monthly revenue to uncover trends. Once you understand your cycles, figure out how to smooth out the highs and lows. Start by knowing your break-even point, which is the level of revenue at which total income equals total expenses. Anything above contributes to profit.

A CPA or financial planner can help. In general, the formula is Break-Even = Monthly Costs ÷ Profit Margin %. With your break-even established, you’ll have a benchmark to guide cash flow decisions during busy and slower months so you can save excess profits for use during leaner times.

Every practice will experience ebbs and flows. What matters is how you manage them.

Plan for your individual financial future.
3. Prioritize your savings. Cover essentials first, then long-term goals. Start by building a cash emergency fund and contributing the minimum amount to your 401(k) plan. Once you’re comfortable with those steps, maximize tax-deductible plans like a 401(k), IRA or Health Savings Account. Begin setting aside cash for large short-term expenses. After you’ve maximized tax-advantaged vehicles, invest in a personal after-tax brokerage account for building wealth. If you have children, save for college.

4. Create or review estate planning documents. Estate planning is vital. It’s important to clearly state your wishes in legal documents and review them periodically to determine if changes need to be made to your wishes and the people you’ve identified in key roles. Core estate planning documents include:

• Will: distributes assets and names guardians for children.
• Durable power of attorney: authorizes someone to make legal, financial and health care decisions on your behalf.
• Living will: outlines medical treatment preferences.
• Revocable living trust: allows you to manage your assets during life and directs distribution after death. It can be changed at any time. Any assets titled in the name of your trust while you are alive are excluded from the public probate process. If privacy is important to you, this is an important piece to consider.

Strong financial habits start with 360-degree planning. Whether you’re managing day-to-day practice operations or laying the groundwork for personal financial security, these steps will help you start the new year ready to achieve your goals.

ANGIE SVITAK, CPA, IAR is a financial planner at Cain Watters & Associates, a full-service advisory firm. For more than 40 years, CWA has provided dental professionals with financial education and comprehensive services. Contact Svitak at info@cainwatters.com.