A Guide to Understanding an Orthodontic Practice Financial Statement

Abstract

The purpose of this article is to help the orthodontic practitioner have a better understanding of practice financial statements, and what the numbers on these financial statements can tell about the financial condition of the practice. This article explores the basic structure of financial statements, including an analysis of key performance indicators (KPI). Properly analyzing financial statements can give a sense of the health of the practice—pointing out strengths and weaknesses. Not all practices have the same format for their financial statements as others, and statements will vary from practice to practice, some providing more information than others. The purpose of this article is to help the orthodontic practitioner have a better understanding of practice financial statements, and what the numbers on these financial statements can tell about the financial condition of the practice. This article explores the basic structure of financial statements, including an analysis of key performance indicators (KPI). Properly analyzing financial statements can give a sense of the health of the practice—pointing out strengths and weaknesses. Not all practices have the same format for their financial statements as others, and statements will vary from practice to practice, some providing more information than others.