Overhead Key Categories
A start-up general dentist practice during the first three years will have a different mix of key overhead categories than more established practices. Review the categories and descriptions below and see if your budgeted percentage of collections aligns within the targeted range.
Category & Description
(As a Percentage of Collections)
Wages, payroll taxes, health insurance, misc. benefits (should not include retirement benefits, Doctor or Associate costs)
Dental supplies (should not include service or equipment)
Includes milling supplies
Rent, depreciation and interest on equipment, equipment lease, personal property and real estate tax, amortization of practice, repairs/maintenance, utilities
Bank charges, legal fees, some CE, dues, liability insurance, office supplies, laundry, phone service, accounting, computers, postage, license/permits, etc.
Includes website management, internal and external marketing
Business portion of auto, charitable contributions, gifts, life and disability insurance, travel and entertainment, some dues, subscriptions, CE
Owner’s Compensation & Profit
Owners compensation, Associate compensation, owner retirement plan, profit