Ask any successful dental practice owner what keeps their business profitable, and one theme will come up again and again: controlling overhead. But how much should a dental practice spend on overhead? And what counts as “normal” or “too much”?

At Gray-Pilgrim & Associates in Chambersburg, PA, we specialize in helping dental professionals understand their numbers, control costs, and run leaner, more efficient practices. If you’re wondering whether your current overhead spending is holding you back, this blog is for you.

What Is Overhead in a Dental Practice?

Overhead includes all the operating expenses that are not related to the dentist’s direct compensation. It covers things like:

• Staff salaries and benefits
• Rent and utilities
• Lab fees
• Supplies
• Marketing
• Insurance
• Technology and equipment

Understanding where your money is going is the first step to reducing waste and increasing profitability.

The Ideal Overhead Target

While every practice is unique, most healthy dental practices should aim for total overhead between 55% and 65% of collections.

Here's a general breakdown of benchmarks:

• Staffing: 25–30%
• Facility costs (rent, utilities): 5–7%
• Lab fees and supplies: 10–15%
• Administrative costs and marketing: 3–6%
• Professional fees, insurance, and tech: 5–7%

If your overhead is consistently above 70%, it's likely cutting into your profit margin—and long-term sustainability.

The Hidden Cost of Inefficiency

High overhead doesn’t always mean you’re overspending—it may mean you’re under-performing. Inefficient workflows, outdated billing systems, and unclear job roles can drive up costs even if you’re not paying for luxury items.

That’s where HR training for dental practices in Chambersburg, PA can make a major impact. When your team is trained to work efficiently, with clear expectations and accountability, your productivity increases and waste decreases.

Overhead Varies by Practice Type

Different dental specialties have different overhead expectations:

• General practices usually have moderate overhead due to a wide patient base and service variety.
• Orthodontics tends to have lower lab costs but higher marketing and technology investments.
• Prosthodontics and cosmetic dentistry often have higher lab and material costs but command higher fees.

At Gray-Pilgrim & Associates, we analyze your overhead in the context of your practice type, market, and growth goals.

Tax Strategies to Support Overhead Management

Beyond reducing expenses, we help clients optimize overhead through tax strategy. If you’re looking for a tax CPA for physicians in Chambersburg, PA, our services ensure you’re taking advantage of:

• Section 179 deductions
• Tax credits for equipment or training
• Retirement planning that reduces taxable income
• Structuring leases and contracts for write-offs

Integrating tax and overhead planning ensures you're not just saving money—you’re positioning your practice for long-term success.

Planning for Transitions: Don’t Let Overhead Get in the Way

If you’re preparing to sell or expand your practice, overhead will be one of the first numbers a buyer or lender reviews. Too high, and it can reduce the valuation of your business.

Our team of dental transition CPAs in Chambersburg, PA helps you clean up your books, optimize your overhead, and present a strong financial case for buyers or partners.

How We Help Practices Take Control of Overhead

At Gray-Pilgrim & Associates, we don’t just hand you reports—we help you interpret and act on them. Our services include:

• Monthly or quarterly performance tracking
• Budgeting and forecasting
• Vendor contract negotiation
• Compensation planning
• HR training for healthcare providers in Chambersburg, PA

Whether you’re a solo practitioner or a growing group practice, our team delivers data-driven strategies and hands-on support to keep overhead in check without sacrificing quality care.

Is Your Overhead Where It Should Be?

If you haven’t analyzed your practice’s overhead in a while—or you’ve outgrown your current systems—it’s time to take a closer look. High overhead isn’t just a number on a spreadsheet. It impacts your freedom, profitability, and future.



Ready for better control of your financial health? Contact Gray-Pilgrim & Associates today. We’re your trusted advisors for everything from HR training for dental practices in Chambersburg, PA to tax consulting and transitions. Let’s make your numbers work for you—not against you.