Dental Practice Income Statement Template

Each month, pull your production and collections report from your practice management software and enter the totals by category. Enter insurance adjustments and write-offs in the designated rows so your net collections calculate correctly. Then enter your expense totals for supplies, lab fees, payroll, and overhead — most of these come straight from your bank statement or payroll report. If you have multiple providers, also fill in the Provider Breakdown sheet with each provider's production and collections. The Dashboard and Annual Summary update automatically.

The number that defines practice profitability isn't gross margin — it's overhead as a percentage of collections. Dental consulting firms set the benchmark at 59–65%; practices running above 70% are usually overstaffed, underproducing, or both. The main expense buckets to watch are staff (typically 25–30% of collections), occupancy (5–8%), dental supplies (5–6%), and lab fees (8–12%). When overhead climbs, it almost always traces back to one or two of these categories. The income statement gives you the data to figure out which one.