Profit First for Dentists

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The Business of Owning a Practice - Expenses

So many dentists that I talk with seem to be asking the same question: where is all the money going?

They’re working hard, getting new clients, and feel like things are going well, and yet, at the end of each month, their profits are not increasing. To make things more difficult, many dentists can feel overwhelmed or confused by their Chart of Accounts. If that sounds like you, don’t worry–you are not alone! I’d encourage you to take a step back, breathe, and work on organizing just one part of your Chart of Accounts. Today, I want to help you organize your expenses, which really fall under 2 major categories and a few subcategories.


The two types of expenses that your dental practice has are: Fixed Expenses and Variable Expenses.


A Fixed Expense is an expense where the dollar amount you’re spending each month does not change, but the percentage of the expense in collections will vary. Fixed Expenses include:

  1. Team Compensation
  2. Occupancy Costs
  3. Equipment and Physical Resources


A Variable Expense is an expense that varies from month to month. These expenses you want to keep at the same percentage of your collections, which means the dollar amount will change month to month based on your collections. Variable Expenses include:

  1. Dental Supplies
  2. Lab Expenses
  3. Marketing
  4. Other Administrative Expenses


If you want to learn more about this topic and other ways to increase your profits at your dental practice, my book “Profit First for Dentists” is for you. You can download the first two chapters for FREE on my website!


I would love to talk more with you about this if you have questions or want to learn more. You can schedule a call with me at I look forward to hearing from you!


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