How does your dental practice compare to other practices? Are your salaries in line with the rest of the industry? How about your overhead or cost structure? Or your operations and policies?
A benchmarking report will help shine some light on these areas. It’ll compare your practice to other practices in your specialty and geographic area. You can use it to discover your strengths – and the areas you can improve.
Benchmarking data will show you how your office compares to others just like it. Do you feel like you’re working more and more, but not making more money? This data can help you determine if you need to hire more staff, change your compensation structure or make other adjustments.
If your practice has multiple dentists, is your compensation formula fair? (Do you even have a compensation formula?) How is your practice ownership structured? What happens if one of you wants to leave the practice? Make sure your compensation and ownership structures are fair to all the dentists in your practice and that they’re in line with industry and regional trends.
How much do you pay your staff? What’s the cost of benefits? Of vacation and sick days? Of your retirement plan?
What’s the value of your practice’s total compensation package – how much does your staff really cost you? Is that cost in line with the rest of your industry and region? Are you overpaying staff at the expense of your profitability – or underpaying them so much that they might be tempted to leave? A personnel cost analysis will look at your personnel costs and compare them to your industry and region. Then, you’ll get help developing a compensation structure that keeps your employees happy and your practice profitable.
If you want to know where your practice stands, contact Rea & Associates or Alan C. Hill, CPA, the head of our dental team, for a dental benchmarking report. You’ll learn what small changes can make a big difference to your bottom line.