1. Matthew Rogers
Maximise your profits and
Minimise your tax
matthew.rogers@cvag.co.uk
Clear Vision Accountancy Group Limited
1 Abacus House
Newlands Road
Corsham Wiltshire
SN13 0BH
www.clearvisiondental.co.uk
2. About 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’
3. 4 take-aways
• Your numbers = MORE PROFIT
• Business STRUCTURE...
• TAX SAVINGS...
• SPEED matters...
5. 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?
6. 1. MORE PROFIT...
• How many active patients do you have?
• What is your exam recall rate?
• What is your hygiene recall rate?
• What is your hygiene concentration rate?
• Do ALL of your patients know about ALL of
your services / treatments?
• What is your treatment conversion rate?
• What is your marketing ROI?
• What is your profit per month per service?
7. Hygiene concentration rate - example
No. of active patients (private) 1000
90% of active patients (private) 900
who 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
9. Your business model
YOU – role of MD
90% margin
YOUR PATIENTS
Hygienists (UDAs – Associates
Therapists £6 to £42 – average £22) Specialists
66% margin 50% margin?
Supported by team and business systems
10. Specialists / Associates / Hygienists
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?
11. Specialists
For example:
Implant per month referred £2,500
x 12 months = £30,000
Take a % e.g. 40% = £12,000 x 10 years = £120,000
OR:
Do the crown e.g. £900 fee per crown = £10,800 x 10
years = £108,000
12. Hygienists
Typically £90 - £130 per hour charge
Cost £25 to £35 per hour
Average £105
Cost £35
Profit £70
66% gross profit
13. Your business model
YOU – role of MD
90% margin
YOUR PATIENTS
Hygienists (UDAs – Associates
Therapists £6 to £42 – average £22) Specialists
66% margin 50% margin?
Supported by team and business systems
14. Real 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
16. 2. STRUCTURE...
Your dental business
2. Sole trader
3. Partnership
4. Expense sharing partnership
5. Limited liability partnership
6. Limited company
17. Incorporation – THE POSITIVES
1. Potential to save tax
2. Goodwill payout - enhanced personal reward
3. Limit your liability
4. Create a corporate structure
5. Easier, cleaner exit route
6. Team motivation
7. School fees through business (could be
beneficial)
8. Use bank funding received on goodwill to pay off
debts or improve your personal assets
18. Incorporation – THE 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
19. 3. TAX SAVINGS on incorporation
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
20. 4. SPEED 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
21. 4. SPEED matters...
1. Timely information...
2. Cash planning...
3. A financial forecast...
4. Regular management accounts...
PLUS...
7. Goodwill valuation every year..
8. Communication...
ACTION: Complete questions 3 and 4 on the postcard…
22. Your NEXT STEPs...
• Read the book... Tick the box, give us
your email address and you’ll get a link to
buy the book...
• Let’s talk...
Hand in your completed postcard to get
your half price book…
Complete feed-back form to arrange a call...
23. 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
24. Clear Vision clients make a difference…
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?
25. Matthew Rogers
Maximise your profits and
Minimise your tax
matthew.rogers@cvag.co.uk
Clear Vision Accountancy Group Limited
1 Abacus House
Newlands Road
Corsham Wiltshire
SN13 0BH
www.clearvisiondental.co.uk
Editor's Notes
How many have you worked with since 2001. Share three insights from the winning orthodontist – share name too if you can!
Your accountant should be helping you make the most of your numbers Not just about profits also about cash also about capital value
