It’s not uncommon to find dentists struggling with high overhead costs. Many of them find it hard to see any tangible profits after they factor-in running expenses. They end up not having enough to upgrade their practices and grow. High overhead costs can hinder your practice from getting to its objectives and goals, and can even run it to the ground.

If you’re struggling with a high overhead cost level, then you must know how frustrating it can be. This is especially true when you don’t even know why your running expenses are that high. If your overhead is above 55% of your overall revenue, then you have reason to worry. There are several reasons why your cost can be limiting the growth of your practice. When you can identify these reasons, then you’re on your way to controlling that high overhead. Although, with an excellent dental associate accountant Chicago, your firm’s overhead costs can be carefully analyzed and managed. However, it’s still good to know some things that may contribute to growth-limiting day-to-day expenses. Here are some of the things.

You Have Too Many Unnecessary Staff

When you’re getting backlog on tasks to be done within the office, hiring a new staff member may seem like the best solution. However, it isn’t always the right move. Sometimes, what you need to do is to redistribute the tasks in your office among existing staff and see the effects. However, many dentists tend to go with the former option, unnecessarily increasing their overhead.

Your Team Is Unproductive

Sometimes, even when you have the right number of staff, they can be unproductive. If you didn’t give your employees the proper job descriptions, orientation, and training, they could end up being unproductive. As a result, running your practice can be more expensive, limiting the growth of your practice. Ensure you always provide precise descriptions of what is expected from each employee. Give them regular performance evaluations and feedback and the right guidance. This will help boost their productivity.

Also, in a bid to motivate staff members, some dentists tend to increase wages unnecessarily. This can backfire as if production stays the same, then salary raise only increases overhead. You can consult with your dental associate accountant Chicago to determine if a raise is a right step. If it isn’t, ensure that salary raises are given based on performance levels only. Let your staff know what level of production efficiency can earn them a wage increase. This will help motivate them too.

Stagnant Billing Prices and Procedures

Several dentists tend to keep their prices the same to retain clients and patients. However, this can affect your overhead costs considerably. It’s this simple: if your running costs are increasing but your prices remain the same, your overhead will increase too. If you’ve invested in new equipment to enhance the quality of service offered to patients, then a small adjustment to price wouldn’t hurt. Ensure your billing is one that’s fair to your patients and your practice too. Before you buy any new equipment, consult your dental associate accountant Chicago on how to make the right adjustments to your prices.

Summary

Uncontrolled running expenses can limit how fast your practice grows. Knowing why your overhead cost is high is the first step in controlling it. And with the right changes, you can reduce overhead and help your practice achieve full potential.