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%