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Developing Leadership Skills

Overhead Key Categories

An established general dentist practice will have a different mix of key overhead categories than start-ups. Review the categories and descriptions below and see if your budgeted percentage of collections aligns within the targeted range.

 

 

Category & Description

Targeted Range

(As a Percentage of Collections)


Personnel

Wages

Payroll taxes

Health insurance, misc. benefits (should not include retirement benefits, Doctor or Associate costs)

 

22-25%

2-3%

2-3%


Clinical Supplies
Dental supplies (should not include service or equipment)

 

6-7%


Lab

Includes milling supplies

 

7-10%


Facility

Rent, depreciation and interest on equip, equip lease, personal property and real estate tax, amortization of practice, repairs/maintenance, utilities

 

9-10%

Rent

5-7%


Business

Bank charges, legal fees, some CE, dues, liability insurance, office supplies, laundry, phone service, accounting, computers, postage, license/permits, etc.

 

9-11%

 

Office Supplies

Professional Fees

2%

1-2%


Marketing

Includes website management, internal and external marketing

 

2-5%


Discretionary/Misc.

Business portion of auto, charitable contributions, gifts, life and disability insurance, travel and entertainment, some dues, subscriptions, CE

 

1-3%

 


Owner’s Compensation & Profit

Owners compensation, associate compensation, owner retirement plan, profit

 

38-44%

 


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