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Profits reduce 12% in two years for single-handed practices

Profits reduce 12% in two years for single-handed practices

The latest NASDAL (National Association of Specialist Dental Accountants and Lawyers) Benchmarking Report has just been released and shows a decrease of almost 12% in profits for single-handed practices in just two years.

In 2014 the average net profit per principal in a single-handed practice was £119,732 and by 2016 this had slumped to £105,914. This compares with a figure of £138,511 average net profit per principal in 2016 for a practice with associates.

The report also saw average net profit per principal at NHS practices increase by nearly 4% - from £129,265 in 2015 to £134,102 in 2016.

"In previous years we have seen a time lag effect of a year or so from a rise in private practice profitability to that experienced by NHS practices. We suggest that following the rise in private practice profits in 2015, this is again the case here," explained Ian.

Associates have been used to their profits flat-lining for more than a decade and the 2016 report showed no let up. Average profit in 2016 (£67,389) was down by almost 1% on 2015 (£68,024). This is likely to be down to market forces and with many practices feeling they cannot increase patient fees; the cost of paying associates is often the next place to look.

The annual Benchmarking Survey statistics are gathered from the accountant members of NASDAL across the UK who together act for more than a quarter of self-employed dentists.

The statistics provide average 'state-of-the-nation' figures so NASDAL accountants can benchmark their clients' earnings and expenditure and help them run their practices more profitably.

Source: Nasdal.org

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