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
Targeted Range
(As a Percentage of Collections)
Personnel
Wages, payroll taxes, health insurance, misc. benefits (should not include retirement benefits, Doctor or Associate costs)
20-25%
Clinical Supplies
Dental supplies (should not include service or equipment)
7-9%
Lab
Includes milling supplies
6-8%
Facility
Rent, depreciation and interest on equipment, equipment lease, personal property and real estate tax, amortization of practice, repairs/maintenance, utilities
10-20%
Rent
5-9%
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
5-8%
Discretionary/Misc.
Business portion of auto, charitable contributions, gifts, life and disability insurance, travel and entertainment, some dues, subscriptions, CE
4-6%
Owner’s Compensation & Profit
Owners compensation, Associate compensation, owner retirement plan, profit
30-38%