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What should the overhead percentage be for a general practice?

Overhead expenses should be 50% to 55% of annual gross collections for a well run general dental practice if you do not include the doctor's clinical and management compensation. Too many profit and loss reports fail to recognize the practice owner's clinical compensation which should be 25% of annual gross collections (which is what it would cost if you had to hire an associate to do all of the clinical work in a practice); then you should add another 5% of annual gross collections as management compensation (which is what it would cost if you hired a manager to operate the practice). When you recognize the clinical and management compensation as an overhead expense, the overhead percentage should be 80% to 85% of annual gross collections for a well run general dental practice. This leaves a 15% to 20% passive profit margin for this practice, which would be considered ideal. See Less

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Client Testimonials

"Overall it was a great experience. My AFTCO Analyst was very knowledgeable about the process from start to finish. He also put us in contact with people to help us move the process along. The due diligence that was given to us for the practice we purchased allowed us to analyze and make the decision of purchasing much easier. We look forward to working with My AFTCO Analyst and AFTCO again in the future."

Jeff McGee
Tucson, AZ

"My AFTCO Analyst did an excellent job with helping guide me through the transition process! I would highly recommend AFTCO to anyone who is looking to sell their practice."

Jason W. Mullen, D.D.S.
Clayton, NC

"The whole experience went very well, rapid, very professional. I would use my AFTCO Analyst again which to me is the best compliment."

Edmund E. Rahal Jr., D.M.D.
Valrico, FL

"My AFTCO Analyst made the practice purchase process smooth and relatively stress-free. He was extremely responsive to emails and always accessible by phone. He was informative and funny. He would preemptively call just to check in on me and to ask if there was anything I needed. From the first conversation to confirming the bill of sale, my AFTCO Analyst was a joy to work with and I will absolutely recommend AFTCO to any of my colleagues that are in the search for the perfect practice. My AFTCO Analyst and AFTCO have my highest regards!"

Laura C. Bridges, D.M.D.
Valrico, FL