Private Practice Expenses?

[DMD_DREAMING]

I have a quick question for those of you students or currently practicing docs that may know. When a dentist first opens a new practice and has to finance the practice over x number of years, does that money come out of the expenses part of the overhead for the business or is it in addition to the around 60% practice expenses? Thanks to those that can advise.

 

[no2thdk999]

I have a quick question for those of you students or currently practicing docs that may know. When a dentist first opens a new practice and has to finance the practice over x number of years, does that money come out of the expenses part of the overhead for the business or is it in addition to the around 60% practice expenses? Thanks to those that can advise.

Overhead is just all the costs associated with you producing dentistry. That includes supplies, staff payroll, building, equipment, taxes, loans, fees, etc.... It's usually presented as a % of your gross billings, i.e. how much money you made.

The first few months you are in a new practice your overhead may be (much) greater than 100%. Meaning you are spending more on all the stuff listed above than you brought in. It's not uncommon to lose money for the first 6 months or so.


JMHO
Rob