ABSTRACT
The business of dental practice relies on close monitoring of the financial activities that take place within the practice. The management of operational costs, the relevance of financial indicators and ratios, and the professional fee structure are all a part of financial management. Financial statements and accounts give absolute figures which reflect in numerical terms income and expenditure within the practice. Gearing ratios reflect the level of financial risk. Return on investment is the financial benefit derived from the investment made and is expressed as a percentage of a specific investment. There are many examples where insufficient investment in the practice has resulted in poor performance or where counter-productive cost control measures have been implemented. The technician's basic salary is treated as a fixed cost. If performance targets are met, additional payments in the form of performance related pay are recorded as a variable cost.
