Knowing Your Numbers

Course Objectives

1. Understand the Importance of Foundational Financial Literacy
   Learners will explore why many dental professionals avoid financial analytics and how gaining clarity around numbers can create empowerment, confidence, and intentional growth.
   
   
2. Set Up Accurate Bookkeeping Using Accrual and Cash Methods
   Learners will learn to work with their bookkeepers or accountants to implement a blended accounting approach: accrual for expenses and cash for collections, ensuring accurate visibility into true profitability.
   
   
3. Create and Customize a Dental Chart of Accounts
   Learners will identify essential P&L categories—such as separating specialty supplies from general supplies—and learn how to avoid misclassifications that distort budgeting and decision-making.
   
   
4. Analyze Overhead and Understand Its Components
   Learners will differentiate between fixed and variable expenses, categorize overhead correctly (excluding doctor compensation), and assess whether their practice is in Phase 0, 1, 2, 3, or 4 based on industry benchmarks.
   
   
5. Diagnose Practice Inefficiencies Using the Symptom → Cause → Solution Framework
   Learners will adopt a root-cause approach to identifying overspending, starting with low-hanging fruit like dental supplies, labs, and marketing, and develop actionable strategies for correction.
   
   
6. Track and Improve Key Performance Indicators (KPIs)
   Learners will monitor metrics such as hygiene production percentage, doctor exams, case acceptance, collection ratio, and monthly break-even to guide practice decisions and staffing needs.
   
   
7. Interpret Collection vs. Production Discrepancies
   Learners will identify how collection shortfalls erode profitability and implement processes to move toward a consistent 98–100% collection rate as a prerequisite for healthy overhead.
   
   
8. Determine the Right Time to Bring on an Associate
   Learners will use metrics such as hygiene production percentage, number of exams per doctor, and overhead phase to assess when the practice is ready for a second provider.
   
   
9. Use Monthly Break-Even and Profitability Forecasts for Growth Planning
   Learners will calculate their MBE (Monthly Break-Even) and learn how to protect cash flow by keeping 1.5x–2x MBE in reserve—especially when preparing for new hires or expansion.
   
   
10. Shift From Emotional to Data-Driven Decision Making
    Learners will learn to recognize the difference between “feelings” and “facts” in leadership, using numbers to make confident decisions around hiring, CE spending, marketing, and systems optimization.