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Beyond BitewingsThe Business Side of Dentistry Author: Edwards & Associates, PC
Beyond Bitewings focuses on helping dentists with the business side of dentistry. Our podcast episodes are a mix of outside experts, and discussions within our own team of CPA's, financial planning, and business experts. This is the podcast for those looking to strengthen your dental practice, run a practice more smoothly, and increase your take-home pay. Language: en Genres: Business, Entrepreneurship, Management Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Why Every Dentist Needs to Know Their Practice's BAM
Episode 111
Thursday, 6 March, 2025
In this episode of Beyond Bitewings, hosts Robert and Ash discuss the essential financial concept of BAM, or the Basic Amount of Money needed to operate a dental practice. This isn't just another metric like production per hour; BAM is crucial for ensuring that a practice is financially healthy and meeting all its obligations. Unlike a simple break-even point, BAM includes not only overhead costs but also salaries, loan repayments, and even the financial goals of the practice owner, such as retirement contributions. The episode emphasizes how understanding and setting an accurate BAM figure can also play a role in establishing a fair bonus system for practice staff, aligning financial goals across the team.Robert and Ash explore the components that make up the BAM, including considerations for future expenses such as new hires, potential rent increases, and loan payments. They also discuss the importance of setting realistic and achievable financial goals, which take into account both historical financial data and future projections. The conversation highlights that calculating BAM annually is a best practice to accommodate changes like market growth and inflation. Lastly, they touch on personal financial goals—like charitable contributions or income for family members—and whether they should be factored into BAM calculations.Key Topics Discussed:Definition and importance of BAM (Basic Amount of Money)The difference between BAM and break-evenBAM's significance in establishing staff bonusesConsiderations for calculating BAM, including future expensesEnsuring BAM is realistic and achievableImpact of loan payments, rent, and retirement contributions on BAMPersonal financial goals in BAM calculationsAnnual recalculation and projection adjustments for BAM
