What does it cost you run your practice if no patients show up?
A clean measure of expenses can properly provide your dental practice a break-even number – what it cost to keep the doors open.
Dental profit and loss statements are notorious for revealing false overhead. The old saying, “garbage in garbage out” applies here if you are not properly organizing and categorizing your dental practice expenses.
We’ve talked before about “owner benefits” mucking up true operating expenses but you can isolate those as needed.
What the break-even number should tell you and your team is what costs you have in the practice that will not change - they’re fixed.
Regardless of who shows up, you pay the rent, the insurance, etc.
Take your monthly break-even and calculate it for the day so you have a daily goal for break-even.
Get your dental CPA to isolate true overhead, find your break-even number, and share it with your team.