Dental Practice Overhead Survey

Transcription

1 Dental Practice Overhead Survey 2013 Data Compiled in 2014

2 Table of Contents Introduction Letter... 1 General Dentistry... 2 Endodontics... 3 Oral and Maxillofacial Surgery... 4 Orthodontics... 5 Pediatric Dentistry... 6 Comparison by Practice Type... 7 Somerset s Dental Team... 8

3 November 2014 Dear Clients and Friends: We are pleased to provide you with our comparison of Indiana dental practice operating expenses. The following pages compare data for the years 2013 and 2012 from amongst our clients throughout central Indiana. The information is presented according to practice type General Dentistry, Endodontics, Oral and Maxillofacial Surgery, Orthodontics and Pediatric Dentistry. We anticipate that you will find this survey useful in your practice planning and analysis. We welcome your questions and comments. If you are not familiar with Somerset, we are an Indianapolis-based accounting, tax and advisory team of forward-thinking, proactive experts with over 50 years in the business with a team specifically dedicated to the dental industry. Our dental industry professionals are committed to helping your dental practice succeed, by working with you to create customized business and financial goals that meet your needs. We specialize in buying and selling of practices, valuation services, buy-ins of associates and compensation, as well as tax planning and preparation. Please contact either of us at or if you would like to discuss the specifics of your practice. Sincerely, SOMERSET CPAs, P.C. Stephen D. Shoemaker, CPA Jay R. Horn, CPA 3925 River Crossing Pkwy, Suite 300 Indianapolis, IN / somersetcpas.com

4 General Dentistry Operating Expenses Office salaries 26.88% 26.25% Payroll taxes 2.95% 3.16% Property taxes 0.26% 0.35% Rent 5.32% 5.58% Dental supplies 7.89% 7.28% Laboratory expenses 5.80% 5.63% Laundry and uniform allowances 0.16% 0.20% Office supplies 1.28% 1.35% Postage 0.24% 0.19% Telephone 0.49% 0.59% Dues and subscriptions 0.25% 0.28% Insurance 0.92% 1.07% Employee medical 0.63% 0.67% Repairs and maintenance 0.46% 0.53% Bank charges 1.08% 1.11% Payroll service fee 0.15% 0.05% Licenses and fees 0.02% 0.04% Meetings/education 0.44% 0.79% Amortization 0.40% 0.26% Depreciation 1.97% 2.70% Professional fees 2.14% 1.62% Profit sharing plan expense 3.07% 2.94% Miscellaneous 0.10% 0.15% Equipment rental 0.16% 0.11% Utilities 0.58% 0.50% Collection expense 0.01% 0.00% Promotion 1.81% 1.84% Employee benefit programs 0.81% 0.75% Business gifts 0.10% 0.06% Contributions 0.12% 0.19% Travel and entertainment 0.48% 0.63% Auto expense 0.71% 0.68% Outside services 0.45% 0.51% Total Operating Expenses as a Percentage of Professional Fees 68.13% 68.06% Page 2

5 Endodontics Operating Expenses Office salaries 15.77% 16.36% Payroll taxes 2.74% 2.71% Property taxes 0.26% 0.26% Rent 4.65% 4.54% Dental supplies 8.69% 8.92% Laboratory expenses 0.04% 0.01% Laundry and uniform allowances 0.21% 0.12% Office supplies 0.69% 1.00% Postage 0.17% 0.21% Telephone 0.67% 0.56% Dues and subscriptions 0.28% 0.35% Insurance 2.41% 1.82% Employee medical 0.72% 0.59% Repairs and maintenance 0.50% 0.37% Bank charges 0.86% 0.87% Payroll service fee 0.08% 0.10% Licenses and fees 0.03% 0.02% Meetings/education 0.36% 0.06% Amortization 0.17% 0.17% Depreciation 1.18% 1.95% Professional fees 1.18% 1.02% Profit sharing plan expense 3.26% 3.04% Miscellaneous 0.40% 0.22% Equipment rental 0.04% 0.06% Utilities 0.39% 0.28% Collection expense 0.04% 0.03% Promotion 1.14% 1.23% Contributions 0.03% 0.05% Travel and entertainment 0.31% 0.27% Auto expense 0.84% 0.71% Outside services 0.98% 2.81% Total Operating Expenses as a Percentage of Professional Fees 49.09% 50.71% Page 3

6 Oral and Maxillofacial Surgery Operating Expenses Office salaries 18.11% 19.35% Payroll taxes 2.64% 2.49% Property taxes 0.18% 0.16% Rent 5.40% 4.97% Dental supplies 9.53% 9.78% Laboratory expenses 0.01% 0.02% Laundry and uniform allowances 0.08% 0.13% Office supplies 0.99% 0.95% Postage 0.22% 0.21% Telephone 1.19% 1.24% Dues and subscriptions 0.35% 0.33% Insurance 3.38% 3.73% Employee medical 0.00% 0.00% Repairs and maintenance 0.76% 0.95% Bank charges 1.28% 1.24% Payroll service fee 0.10% 0.09% Licenses and fees 0.08% 0.11% Meetings/education 0.18% 0.08% Depreciation 1.54% 2.61% Professional fees 0.33% 0.27% Profit sharing plan expense 7.44% 3.22% Miscellaneous 0.18% 0.07% Equipment rental 0.02% 0.00% Utilities 0.22% 0.30% Collection expense 0.23% 0.23% Promotion 0.08% 0.08% Employee benefit programs 0.83% 1.02% Business gifts 0.01% 0.01% Contributions 0.04% 0.03% Travel and entertainment 0.32% 0.60% Auto expense 0.05% 0.03% Outside services 0.81% 0.73% Advertising 0.72% 0.68% Total Operating Expenses as a Percentage of Professional Fees 57.30% 55.71% Page 4

7 Orthodontics Operating Expenses Office salaries 20.22% 19.88% Payroll taxes 2.77% 2.88% Property taxes 0.75% 0.80% Rent 6.68% 6.31% Dental supplies 9.28% 9.28% Laboratory expenses 2.08% 1.78% Laundry and uniform allowances 0.19% 0.14% Office supplies 2.94% 3.07% Postage 0.13% 0.12% Telephone 0.59% 0.67% Dues and subscriptions 0.33% 0.36% Insurance 0.65% 0.85% Employee medical 0.13% 0.14% Repairs and maintenance 1.13% 1.02% Bank charges 0.79% 0.89% Payroll service fee 0.15% 0.08% Licenses and fees 0.06% 0.02% Meetings/education 0.42% 0.22% Amortization 0.48% 0.43% Depreciation 2.00% 3.01% Professional fees 0.64% 1.01% Profit sharing plan expense 2.02% 1.69% Miscellaneous 0.15% 0.15% Equipment rental 0.00% 0.00% Utilities 1.05% 0.97% Collection expense 0.00% 0.00% Promotion 0.03% 0.12% Employee benefit programs 0.63% 0.42% Business gifts 0.16% 0.18% Contributions 0.14% 0.04% Travel and entertainment 0.63% 0.77% Auto expense 0.22% 0.23% Outside services 0.15% 0.20% Advertising 1.98% 2.38% Total Operating Expenses as a Percentage of Professional Fees 59.57% 60.11% Page 5

8 Pediatric Dentistry Operating Expenses Office salaries 29.50% 30.34% Payroll taxes 2.09% 1.76% Property taxes 0.08% 0.11% Rent 4.94% 4.89% Dental supplies 9.73% 9.99% Laboratory expenses 0.46% 0.58% Laundry and uniform allowances 0.04% 0.17% Office supplies 1.80% 1.63% Postage 0.12% 0.08% Telephone 0.82% 0.64% Dues and subscriptions 0.29% 0.36% Insurance 0.40% 0.40% Employee medical 0.00% 0.00% Repairs and maintenance 0.41% 0.48% Bank charges 0.20% 0.18% Payroll service fee 0.00% 0.00% Licenses and fees 0.00% 0.00% Meetings/education 0.51% 0.41% Amortization 0.60% 0.56% Depreciation 0.59% 0.99% Professional fees 1.10% 1.03% Profit sharing plan expense 1.29% 0.87% Miscellaneous 0.87% 1.12% Equipment rental 0.01% 0.00% Utilities 0.33% 0.29% Collection expense 0.00% 0.00% Promotion 1.22% 0.74% Employee benefit programs 0.00% 0.00% Business gifts 0.00% 0.00% Contributions 0.36% 0.47% Travel and entertainment 0.33% 0.75% Auto expense 0.00% 0.00% Outside services 0.01% 0.13% Total Operating Expenses as a Percentage of Professional Fees 58.10% 58.97% Page 6

9 Comparison By Practice Type Page 7

10 Find out how Somerset CPAs can help you look at your practice in a new way. Contact any of our Dental Team members today and request a complimentary initial consultation. Stephen D. Shoemaker, CPA sshoemaker@somersetcpas.com Steve is a senior manager in our Dental and Tax Teams, where he focuses on business & individual tax prep & tax planning with a specialty in dental industry and farming industry. Prior to joining Somerset in 2008, he gained industry experience as a controller for an architectural and engineering firm whose specialty was designing jails, municipal buildings, schools, roads and bridges. Steve also served as an accounting and tax manager for a local CPA firm where he managed audits, reviews, compilations and tax engagements, primarily working with telecommunications, cable television, internet, A/E, construction and individual clients. Additionally, Steve worked as a cost accountant where he was responsible for monthly inventory job costing. He earned his B.S. degree in accounting and finance from Indiana Wesleyan University in Steve is a member of the American Institute of Certified Public Accountants and the Indiana CPA Society. Jay R. Horn, CPA jhorn@somersetcpas.com Jay is a principal in our Dental and Health Care Team. He and all the professionals of Meridian CPAs integrated with Somerset CPAs as of July 1, Jay has been in the practice of public accounting since 1997, providing accounting, taxation and consulting services to closely-held businesses and their owners. He provides accounting, tax and consulting services to dental, healthcare, personal service organizations and other small businesses and entrepreneurs. Jay s healthcare consulting experience includes practice management, physician compensation, mergers and acquisitions and business valuation services. He has extensive consulting experience with closely-held businesses in the areas of business management, business operations, financial management, compensation systems, budgeting, practice startups, mergers and acquisitions, strategic planning, retirement plans, divorce planning and personal financial planning. In addition, Jay has been involved in fee schedule revisions, office reviews, physician reviews, cost accounting and cash flow projections. He also has experience in the taxation of professional practices, professional corporations, S-corporations, partnerships, limited liability companies, notfor-profit entities and individuals. Jay is a graduate of Indiana University with a B.S. in business with a concentration in accounting. He is a member of the Indiana CPA Society and American Institute of CPAs. Jay is a board member of the Dyslexia Institute of Indiana Page 8

11 Andrew L. DePew, CPA Andy is a principal in our Dental and Health Care Teams. Prior to joining the firm in 1995, Andy gained experience with another Indiana CPA firm where his client base included privately-held businesses, and he prepared financial statements and completed tax returns for C corporations, S corporations and partnerships. At Somerset he is a member of the Health Care Team and works with physician groups and administrators regarding their tax planning, financial statements, cash flow analysis, development and review of income distribution methodologies and practice operations. Andy s experience is further distinguished by the fact that he received the second highest score in the state on the November 1994 CPA examination. He graduated from Ball State University in 1993 where he received his B.S. in accounting. Andy is a member of the Indiana CPA Society, the American Institute of CPAs, the Indiana Medical Group Management Association and the Medical Group Management Association. Mack Doyle, CPA mdoyle@somersetcpas.com Mack is a manager in our Dental and Small Business Services Teams at Somerset. His responsibilities include assisting clients with their accounting and financial statement functions. Prior to joining the firm, he worked with companies with revenues ranging from $2 million to $100 million. Mack has experience in several different industries including dental, health care, real estate and construction. He is a member of the Indiana CPA Society and the American Institute of CPAs. Mack received his B.S. in accounting and finance from Miami University in Oxford, Ohio, in Carla S. Baugher cbaugher@somersetcpas.com Carla is a supervisor on our Dental and Tax Teams. She provides her accounting and tax expertise to a variety of clients. Carla s accounting background includes management and financial experience within the health care and public accounting industry. She is a 1987 graduate of Ball State University with a B.S. in accounting. Page 9

12 Somerset CPAs and Advisors dental services Our dental industry professionals are committed to helping your dental practice succeed by working with you to create customized business and financial goals. We work hand-in-hand with you and your staff to ensure your practice operates smoothly and efficiently, allowing you to focus on what s most important your patients. CONSULTING SERVICES Accounts receivable analysis and revenue cycle management Operations and internal control reviews Income distribution methodology design Group practice governance design and succession planning Overhead expense analysis Dental practice valuation Buy in/buy out Practice sale/purchase ADDITIONAL SERVICES Accounting Tax Technology Solutions Forensic accounting Interested in contacting one of our dental experts? Visit us online at somersetcpas.com, or us at info@somersetcpas.com. find us on... Somerset CPAs, P.C River Crossing Pwky, Suite 300 Indianapolis, IN / somersetcpas.com