
7101 York Avenue South, Suite 300
Edina, Minnesota 55435-4407
Call 952-921-3360
Text - 952-228-9486
We are pleased to present to you a copy of our biennial survey. The information shown below and contained on the attached pages is provided to you strictly as a management tool. Its main purpose is to allow you to compare your practice with the averages and ranges of our sample and to provide some insight into the trends occurring in your profession. It is important to note that formalized statistical sampling was not undertaken and therefore, the results should not be assumed to be statistically valid.
The line entitled “Net Income before owner compensation – Income Tax Basis” on Schedule 1 constitutes the total amount available for remunerating the dentists. We have summarized how this “Net Income before owner compensation – Income Tax Basis” was allocated between different owner compensation and benefits as follows:
Range | |||
High | Low | Average | |
Self employment income after adjustments show below, or salary taken | 660,443 | 57,784 | 226,892 |
Owner/officer retirement plan contributions | 56,500 | 0 | 11,067 |
Income tax basis profit (loss) earned by corporations | 523,048 | (46,803) | 34,320 |
Insurance preminus and medical expenses paid on behalf of the owner/officer | 30,884 | 0 | 8,570 |
Owner/officer payrool taxes paid or 1/2 self employment tax | 18,036 | 4,962 | 10,581 |
Income Tax Basis | 291,431 |
The range columns on the prior page and on Schedule 1 present the highest and lowest amount for that particular line item. The range columns are not meant to total or show cumulative or net figures.
The average columns on Schedules 1 and 2 present the average amount for that particular line item from survey participants. The average columns add up to the “Total Expenses Disbursed” and the “Net Income Before Owner Compensation – Income Tax Basis” figures.
The percentage (%) column on Schedule 1 adds up as described in the preceding paragraph. However, the % change column on Schedule 2 is not meant to total or show cumulative or net figures. This column represents the annualized percentage increase or decrease of that particular line item over the two year period.
It is important to note that financial information from multi-owner dental practices and from practices that utilize associate dentists has been segregated into information that represents the activity of each doctor. Therefore, financial information from a sole proprietor using a part-time associate will show activity from the full time proprietor. Collections, expenses and contribution to profit for the associate are not included. By presenting information by practitioner in this manner, we are able to focus on statistics that make a better comparison across practices.
We would also like to highlight the following items:
Range | ||||
High | Low | Average | % | |
Fees Received | 2,329,615 | 241,759 | 831,527 | 100% |
Salaries – general | 184,961 | 0 | 59,817 | 7.2% |
Salaries – assistants | 180,730 | 0 | 63,719 | 7.7% |
Salaries – hygienists | 398,814 | 0 | 99,587 | 12.0% |
Payroll taxes – staff | 57,093 | 2,765 | 19,146 | 2.3% |
Staff retirement plans | 28,102 | 0 | 6,168 | 0.7% |
Employee benefit plans | 56,483 | 0 | 7,748 | 0.9% |
Staff meetings and parties | 20,213 | 0 | 2,674 | 0.3% |
Professional supplies | 198,964 | 6,585 | 62,148 | 7.5% |
Laboratory fees | 190,889 | 4,710 | 54,536 | 6.6% |
Occupancy expense |
118,643 | 11,486 | 50,382 | 6.1% |
Repairs, decorate and service contracts |
23,783 | 0 | 5,829 | 0.7% |
Depreciation, amortization and leased equipment | 119,295 | 0 | 24,729 | 2.9% |
Interest paid | 47,518 | 0 | 7,034 | 0.8% |
Insurance – business | 30,728 | 1,557 | 6,091 | 0.7% |
Telephone | 13,079 | 488 | 4,391 | 0.5% |
Office and computer expenses | 60,204 | 1,410 | 16,58 | 1.6% |
Promotion and advertising | 63,001 | 100 | 13,939 | 1.7% |
Meetings and seminars | 31,975 | 0 | 4,736 | 0.5% |
Professional, banking and other fees | 90,207 | 2,650 | 20,148 | 2.4% |
Dues, licenses and subscriptions | 8,651 | 405 | 3,062 | 0.4% |
Auto and employee travel | 8,890 | 0 | 1,403 | 0.2% |
Laundry and uniforms | 5,188 | 0 | 812 | 0.2% |
Covenants, contracts and agreements | 68,664 | 0 | 5,413 | 0.7% |
Total Expenses Disbursed | 540,096 | 65.0% | ||
Net Income on an Income Tax Basis | 291,431 | 35.0% |
*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.
2014 Average |
2012 Average |
Increase (Decrease) | Annualized % Change |
|
Fees Received | 831,527 | 771,183 | 60,344 | 3.8% |
Salaries – general | 59,817 | 60,105 | (288) | -0.2% |
Salaries – assistants | 63,719 | 56,090 | 7,629 | 6.6% |
Salaries – hygienists | 99,587 | 88,006 | 11,581 | 6.4% |
Payroll taxes – staff | 19,146 | 17,906 | 1,240 | 3.4% |
Staff retirement plans | 6,168 | 6,393 | (225) | -1.8% |
Employee benefit plans | 7,748 | 8,546 | (798) | -4.8% |
Staff meetings and parties | 2,674 | 1,792 | 882 | 22.2% |
Professional supplies | 62,148 | 55,666 | 6,482 | 5.7% |
Laboratory fees | 54,536 | 54,674 | (138) | -0.1% |
Occupancy expense | 50,382 | 50,400 | (18) | 0.0% |
Repairs, decorate and service contracts |
5,829 | 5,185 | 644 | 6.0% |
Depreciation, amortization and leased equipment |
24,729 | 18,724 | 6,005 | 14.9% |
Interest paid | 7,034 | 7,923 | (889) | -5.8% |
Insurance – business | 6,091 | 5,204 | 887 | 8.2% |
Telephone | 4,391 | 3,946 | 445 | 5.5% |
Office and computer expenses | 16,582 | 13,918 | 2,664 | 9.2% |
Promotion and advertising | 13,939 | 13,899 | 40 | 0.1% |
Meetings and seminars | 4,736 | 3,642 | 1,094 | 14.0% |
Professional, banking and other fees | 20,148 | 16,860 | 3,288 | 9.3% |
Dues, licenses and subscriptions | 3,062 | 2,630 | 432 | 7.9% |
Auto and employee travel | 1,403 | 1,772 | (369) | -11.0% |
Laundry and uniforms | 812 | 888 | (76) | -4.4% |
Covenants, contracts and agreements | 5,413 | 5,173 | 240 | 2.3% |
Total Expenses Disbursed | 540,096 | 499,342 | 40,754 | 4.0% |
Net Income Before Owners Compensation – Income Tax Basis | 291,431 | 271,841 | 19,590 | 3.5% |
*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.