Calculating Dental Office Overhead

I am trying to work out the overhead at our office, because it is just ridiculously high. But I have a few questions:

1. Where do you place the doctor’s salary and benefits?

Separate from ALL other expenses.

Does that figure in to overhead for a practice where 2 DDS’s are co-owners?

No, neither does non-owner dentist compensation IF you’re trying to compare to benchmarks or others

I am assuming if it did, it would be kept separate from wages for employees.2. Is the office manager salary added in with the rest of the employees or it is separate?

Employees should be broken down into at least three categories, if not four, assistants, hygiene and front desk (some call this administrationgeneral I suspect). IF your office has an office manager, sometimes they get their own category.

Any help would be appreciated.

Also review this benchmark report from a survey we did. Focus on the right side of the page, it goes from maximum to average.

This post first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at

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