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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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"As difficult as change could be, this transition went smoothly, efficiently, and quickly. My AFTCO Analyst was a tremendous asset in helping me through the various steps of transition. His professionalism and caring concern helped to ease the anxiety for my wife and myself. I have the highest respect for my AFTCO Analyst and the rest of the AFTCO team."

Kenneth L. Mundy, D.D.S.
Lakeland, FL

"My experience with AFTCO during the sale of my practice was a positive one. I found my AFTCO Analyst to be very knowledgable from both the seller's and buyer's viewpoints. He communicated with me regularly and kept me updated as things developed. His professionalism and courteous style were greatly appreciated. I would highly recommend AFTCO."

Donald R. Dietrich, D.M.D.
York, PA

"I looked for my own practice for around 2 years with no success. Within a few months after meeting with my AFTCO Analyst, we had found my dream practice and he made the whole transition very smooth."

Michael S. Williams, D.D.S.
Jacksonville, NC

"My AFTCO Analysts asked about, understood, and showed a caring attitude about the professional and personal needs that were involved in my search for the right practice. They displayed this compassion during every step of the process."

Andrew J. Krantz, D.D.S.
New Castle, PA