Every year, you should be looking at ways to enhance the revenue of your dental practice. If you’re keeping track of your financial records, it shouldn’t be hard to pinpoint areas where you can improve (and even the best dental practices have room for improvement). Overhead percentages are a common place to look. And…Read More→
Author: adrian
Increasing Procedure Fees in Your Dental Practice
In a recent Dentaltown poll, collections in 2019 were up for 38 percent of Townies, flat for 18 percent, and down for 15 percent. We know that one of the simplest ways to increase collections is to raise fees; but it’s not that simple. How to do it without alienating regular patients and maintaining profitability…Read More→
Changes to the CDT Code in 2020
We’ve seen the field of dentistry undergo many changes over the past several years, between tech upgrades, M&A activity, the insurance landscape, and the tax code. In 2020, new changes that will affect every dentist involve substantial changes to the CDT code. The ADA received more than 156 code change requests to the CDT dental…Read More→
Managing Dental Practice Labor Costs
In dentistry, labor costs usually represent the highest percentage of practice overhead. The industry average is around 27 percent and may or may not include benefits like retirement contributions, healthcare premiums, bonuses, and other benefits. I’ve seen practices where labor costs exceed 30 and even 40 percent of overhead expenses, and while I understand how…Read More→
Dental CPAs Q&A: Should High Labor Costs Disqualify a Practice Acquisition?
In this edition of Dental CPAs Q&A, I’m going tackle a difficult topic: labor costs. It’s a sensitive subject to bring up sometimes because most dentists I know think the world of their staff, and want to compensate them accordingly for all the work they do supporting and growing the practice. There are limits…Read More→
TWO IMPORTANT WORDS WHEN EMPLOYING YOUR CHILDREN IN YOUR PRACTICE
ORDINARY & NECESSARY This blog is LONG overdue. Over the years and moreso the past two to three years a client asks us about employing their children as models because they heard it from a colleague or at a study club meeting or at a seminar. Many times it’s the seminar speaker, who may even…Read More→
How Dentists Can Claim the QBID Deduction for Rental Real Estate
Last October, I wrote about a handful of specific definitions of the Qualified Business Income Deduction (QBID) as they applied to dentists. Given the law’s restrictions on type of business and income threshold, we already know that some dentists won’t qualify. But there are enough who will benefit a little all the way up to…Read More→
Dental CPAs Q&A: Comparing Start-Up vs. Buying an Existing Dental Practice
I was talking with a young dentist recently who was debating the pros and cons of opening her own practice and starting from scratch or buying an existing dental practice where the variables are known. For anyone who’s been in this position before, you know there’s no easy answer. There will be unknowns in both…Read More→
When Is High Overhead a Good Thing in Dental Practice Acquisitions?
In one of our recent posts, I talked about how finding the perfect dental practice is nearly impossible. It’s more important to look for practices with good numbers and even better potential. The problem is finding those practices and sorting out the “good” numbers from the not so good, and assessing the potential future performance…Read More→
The Overhead Is In Your Hands: A Guide for New Dental Practice Buyers
In my last post, I discussed a recent and real-life example of a dentist who was understandably put off by the asking price of a practice they were looking at. My advice was not to discount high overhead, it may not be a bad thing for new buyers and different issues that contribute to it…Read More→