The following overhead numbers are typical of a well managed Dental Practice:
• Staff Salaries (including benefits and government required Payroll expenses) = 24-28%
• Clinical Supplies = 6%
• Lab Fees (all) = 7-8%
• Rent or Lease payment = 4%
• Equipment Leasing/Purchases = 2-3%
• Office Supplies (includes postage and electronic billing and filing charges) = 2-3%
• Utilities, telephone, accounting, legal and professional fees = 10%
Ideal, true, overhead should be no more than 60%. Some numbers may be included as “overhead” or “practice expenses” that are not absolutely required to run a Dental Practice. These items should not be calculated when evaluating the efficiency of your Dental Practice. However, they should be calculated for business and tax purposes.
