Understand the Best Ways to Control Your Overhead

One of the most frequently asked questions we get from dental practice owners is: How much overhead is too much? If your practice is collecting more but you’re not keeping more, it’s time to take a hard look at where your money is going.

At Pro-Fi 20/20 Dental CPAs in Suwanee, GA, we help dentists across the state analyze, optimize, and manage their overhead expenses with precision. In this blog, we break down what overhead should look like, how to calculate it, and where most practices go wrong.

What Counts as Overhead?

Overhead includes all operational costs not tied to owner compensation. This includes:

• Staff wages and benefits
• Rent and utilities
• Lab and supply costs
• Marketing and advertising
• Insurance and licensing
• IT services and software
• Professional services

Proper bookkeeping for dentists is essential for tracking and categorizing these expenses accurately. Without clean financials, it’s impossible to know how your overhead compares to industry benchmarks.

Industry Benchmarks for Dental Practice Overhead

While every practice is different, here are general overhead target ranges:

• Total overhead: 55–65% of collections
• Staff compensation (clinical + admin): 25–30%
• Facility costs (rent, utilities): 5–8%
• Lab and supply costs: 10–15%
• Admin & marketing: 4–6%
• Technology & insurance: 3–5%

If you’re above 70% consistently, you’re likely leaking profitability.

The Overhead Red Flags We Look For

When we review overhead reports for our clients, here’s what we often find:

• Underperforming staff roles
• Overreliance on high-cost marketing channels
• Poor supply chain contracts
• Rent that exceeds local market rates
• Inefficient software systems

This is where our CPA consulting services in GA make a difference. We dig into your expenses to find both quick wins and long-term opportunities to improve your financial health.

The Link Between Overhead and Growth

High overhead can strangle growth. It reduces your ability to invest in technology, staff bonuses, marketing, or office upgrades. For practices seeking bank loans for dentists in GA, lenders look closely at overhead ratios as part of the approval process.

We help prepare loan applications and financial reports that position you for success with bank loans for dental businesses in GA, whether you’re expanding or buying new equipment.

Don’t Forget the Tax Impact

Overhead spending doesn’t just affect your margins—it affects your tax position. Some expenses can be written off immediately, others need to be capitalized. Our dental CPAs provide guidance to ensure every dollar you spend is both strategic and tax-efficient.

If you're nearing a transition, we also assist with dental business valuations in GA, ensuring your financial statements reflect healthy, optimized operations.

Overhead Strategy for DSOs and Group Practices

If you're part of or planning to join a DSO, overhead structure becomes even more important. Shared services models, centralized marketing, and group purchasing can all help reduce costs—but only if they’re tracked and managed effectively.

We consult with dental support organizations in GA to build scalable, transparent financial models that support long-term growth.

How Pro-Fi 20/20 Helps You Take Control

We offer:

• Monthly overhead tracking and reporting
• Benchmarking vs. regional and national standards
• Budget creation and forecasting
• Cost-control strategy sessions
• Tax impact analysis and planning
• Transition planning for buyouts, partnerships, or DSOs

Whether you're a solo practitioner or part of a multi-location DSO, we tailor your financial strategy to your unique business structure and goals.

Is Your Overhead Holding You Back?

If you’re not sure where your practice stands—or you’re planning a transition—now is the time to get a professional financial review. At Pro-Fi 20/20 Dental CPAs, we specialize in helping dental practices across Georgia make smarter decisions with real financial data and industry insight.



Let’s work together to reduce unnecessary overhead, improve profitability, and help you make the most of every dollar your practice earns.