The Economics and Business of a Dental Office
When you work to increase sales of a certain treatment, service or product, it’s important to consider the marginal cost. Marginal cost is the amount of money, time, etc. it takes for you to produce one more of the service or product. This is separate from the fixed cost, which is the same whether you […]
Continue ReadingLast week we looked at accounts receivable. Now we’re going to take a look at accounts payable. Your accounts payable are all the money you owe your vendors. Accounts payable typically do not charge interest and are typically due within 90 days. Loans and mortgages are not included in accounts payable. The key point here […]
Continue ReadingPeople owe you money. As long as you are in practice, people will always own you money. The money they owe is called accounts receivable. From the time you issue a bill to the time the person pays, the money is in accounts receivable. Basically, you’re giving the people who owe you money an interest-free […]
Continue ReadingYour office has revenue and hopefully your office has profit. Let’s look at the difference. Revenue is all the money you take in – from patients, insurance companies, sales of products, etc. If you add up all the deposits to your bank account each month, that is your monthly revenue. Profit is what’s left after […]
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