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The Numbers Behind Your Dental Practices (你的牙科实践背后的数字)
The Numbers Behind Your Dental Practice’s Performance
Prepared by: Marcia Lewis, CPA/PFS, CFP
Director
Blue Co., LLC
500 West Jefferson Street
Suite 1600
Louisville, Kentucky 40202
Ph 502.584.1101
mlewis@
The Numbers Behind Your Dental Practice’s Performance
When you submit your dental practice’s tax return, you may feel you have completed your essential
financial analysis for the year, but you are not finished yet. While you need to know your practice’s net
income for the year, you also need to know the meaning behind the numbers so that you can take
action, if necessary, to improve your profitability and financial performance.
The first step in maximizing your dental practice’s financial performance is to accurately compare your
practice’s performance to that of your peers throughout the region, and to established benchmarks. A
trusted professional financial analyst can help you make that comparison, and more importantly, they
can help you identify what you should do if your practice underperforms in one or more of the
benchmarked indicators. Knowing the strengths and weaknesses of your practice can help you
improve both your bottom line and patient care.
One revealing area of comparison is how the various expense categories stack up as percentages of
net collections. Analysis in this area has been conducted by the Blue Co. LLC 2010 Dental Survey of
dentists in our region, which is supplemented with information from the Dental Economics Levin
Group Practice Survey.
Labor expense is the highest line item cost of doing business. Your practice will not be profitable
unless you are controlling and monitoring your total labor costs, which include salaries, payroll taxes,
worker’s compensation, medical insurance,
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