Dos and don'ts for financial management

How to control overhead

There are two ways that businesses achieve profitability: increasing revenue and reducing expenses. Most dentists are doing what they can to drive production by bringing in more new patients. But a focus on controlling overhead means dental practices can experience tens of thousands of dollars in savings.

Reduce overhead by 2% to 5%. Overhead is a necessary part of running a practice, but eliminating unnecessary expenses can ensure the financial health of the practice. Levin Group recommends a target of 59% overhead for dental practices. Control overhead by reducing unnecessary fixed expenses, enhancing efficiencies to increase productivity and production, and developing a comprehensive budget that puts the practice on target to achieve its financial goals.

Don't overlook inventory. Do you know your current level of supplies? Is your storage area full of outdated supplies taking up valuable space? Practices should take inventory semiannually. This will help you maintain a steady stream of supplies, avoid overages and shortages, and have stronger control over expenses.