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Clear Vision Accountancy Group Limited1 Abacus HouseNewlands RoadCorsham WiltshireSN13 0BH
www.clearvisiondental.co.uk
Matthew RogersMatthew Rogers
Maximise your profits and
Minimise your tax
About Clear VisionAbout Clear Vision
• Accountancy and business advice to dentists and orthodontists
• Started working with dentists in 2001 – helped a squat orthodontic business to win the ‘Practice of the Year’ at the Private Dentistry Awards in 2005
• You can tap into our experience complete the postcard provided & get a 50% discount off ‘The Business of Dentistry’
4 take-aways4 take-aways
1. Your numbers = MORE
PROFIT
2. Business STRUCTURE...
3. TAX SAVINGS...
4. SPEED matters...
1. MORE PROFIT...1. MORE PROFIT...
MORE? or
LESS?
1. MORE PROFIT...1. MORE PROFIT...
1. How many active patients do you have?2. What is your exam recall rate?3. What is your hygiene recall rate?4. What is your hygiene concentration rate?5. Do ALL of your patients know about ALL
of your services / treatments?6. What is your treatment conversion rate?7. What is your marketing ROI?8. What is your profit per month per service?
1. MORE PROFIT...1. MORE PROFIT...
1. How many active patients do you have?2. What is your exam recall rate?3. What is your hygiene recall rate?4. What is your hygiene concentration
rate?5. Do ALL of your patients know about ALL
of your services / treatments?6. What is your treatment conversion rate?7. What is your marketing ROI?8. What is your profit per month per service?
Hygiene concentration rate - Hygiene concentration rate - exampleexample
No. of active patients (private) 1000
90% of active patients (private) 900who should see the hygienist
No. of active patients seeing hygienist 450
Potential patients to see hygienist 450
£Therefore 2 x 30 mins per year 105 per hour
Cost per hour 35
Profit per hour 70
Potential profit 450 patients x £70 31,500 per annum
Benchmarking (Sole Benchmarking (Sole Owners)Owners)
Fees £1m £1m £300k £300k
Profit £40k
£350k
£60k £130k
Net profit % 4% 35% 20% 43%
Why?
Your business modelYour business model
YOU – role of MD
Supported by team and business systems
90% margin
YOUR PATIENTS(UDAs –
£6 to £42 – average £22)Associates
50% margin?Specialists
Hygienists
66% marginTherapists
Specialists / Associates / Specialists / Associates / HygienistsHygienists
1. Are you paying 45% or lower for associates?
2. Are you paying 45% of lower for specialists?
3. Are you using sliding scales for associates & specialists?
4. Are hygienists paid by %? Be careful of high value hygiene work e.g. whitening
5. Are you paying hygienists on an hourly rate? Even for FTAs, even for gaps?
SpecialistsSpecialists
For example:Implant per month referred £2,500 x 12 months = £30,000
Take a % e.g. 40% = £12,000 x 10 years = £120,000OR:Do the crown e.g. £900 fee per crown = £10,800 x 10 years = £108,000
HygienistsHygienists
Typically £90 - £130 per hour charge
Cost £25 to £35 per hour
Average £105Cost £35Profit £70
66% gross profit
Your business modelYour business model
YOU – role of MD
Supported by team and business systems
90% margin
YOUR PATIENTS(UDAs –
£6 to £42 – average £22)Associates
50% margin?Specialists
Hygienists
66% marginTherapists
Real life exampleReal life example
• Restructure of a 60% NHS practice (£170k UDA contract value)
• Turnover £550,000 per year• Limited company• 2 directors – one 4 days per week, one 3
days per week• One employed associate - £60,000 salary• Net profit was £80,000 per year• Two years later net profit = £220,000
1. MORE PROFIT...1. MORE PROFIT...
MORE? or
LESS?ACTION: Complete questions 1 and 2 on the postcard…
2. STRUCTURE...2. STRUCTURE...
Your dental business 1. Sole trader2. Partnership3. Expense sharing partnership4. Limited liability partnership5. Limited company
Incorporation – Incorporation – THE POSITIVESTHE POSITIVES
1. Potential to save tax2. Goodwill payout - enhanced personal
reward3. Limit your liability4. Create a corporate structure 5. Easier, cleaner exit route6. Team motivation7. School fees through business (could be
beneficial)8. Use bank funding received on goodwill to
pay off debts or improve your personal assets
Incorporation – Incorporation – THE NEGATIVESTHE NEGATIVES
1. Need more time to maintain efficient records
2. Statutory requirements to be met
3. Prepare an Annual Return to the GDC
4. Transfer your NHS contract to a Limited
Company
5. HMRC may question the valuation
6. Be careful of superannuation on incorporation
3. TAX SAVINGS 3. TAX SAVINGS on on incorporationincorporation
Real life TAX SAVINGS:• Husband and wife partnership• Net profit £120,000• Incorporated business• Goodwill value £520,000• Will save nearly £100,000 in tax over
10 years
4. SPEED4. SPEED matters... matters...
Example 31 March year end:
• Tax planning will take place Feb or early March– Enterprise Investment Scheme– Venture Capital Trust– Film Schemes– Enterprise Zone Trust
• Accounts prepared by mid May• Tax liability calculated by end May
4. SPEED4. SPEED matters... matters...
1. Timely information...2. Cash planning...3. A financial forecast...4. Regular management accounts...
PLUS...5. Goodwill valuation every year..6. Communication...
ACTION: Complete questions 3 and 4 on the postcard…
Your Your NEXT STEPsNEXT STEPs......
1. Read the book... Tick the box, give us your email address and you’ll get a link to buy the book...
2. Let’s talk...
Hand in your completed postcard to get your half price book…Complete feed-back form to arrange a call...
Follow Clear Vision…Follow Clear Vision…
• On the web: www.clearvisiondental.co.uk *
*Download first two chapters of ‘The Business of Dentistry’ for FREE• Via our blog:
www.clearvisiondentalblog.co.uk • On Twitter: @CVfordentists for news, views and added value downloads
At Clear Vision, we believe every business has the power to change lives, by integrating giving into its everyday business activities.
When we finish a set of accounts, a tax return, or a consultancy project, we donate a goat to a Kenyan family via the global ‘Buy1Give1’ initiative – www.b1g1.com.
Could your practice integrate giving into its everyday activities too?
Clear Vision clients make a Clear Vision clients make a difference…difference…
Clear Vision Accountancy Group Limited1 Abacus HouseNewlands RoadCorsham WiltshireSN13 0BH
www.clearvisiondental.co.uk
Matthew RogersMatthew Rogers
Maximise your profits and
Minimise your tax
