Optometry Practice Expenses

Running a successful Optometry practice requires the revenue to exceed expenses by an amount that is substantial to sustain growth and profit beyond any other conceivable investment. As practice owners, partners, or associates we are committed to providing great eye care, managing a sustainable and profitable business, as well as conveying this message to employees, and making sure they abide by those terms for only those terms ensure they can grow and benefit from being employed in an optometry practice.

The financial needs of both employers and employees and the demanding patients for extraordinary care that requires state-of-the-art equipment mean that the cost of making business and running an Optometry practice is likely to continue to rise. Sometimes we only think of the cost of goods sold when we are trying to understand the costs in a practice. However, there are other important expenses that an optometry practice incures every month that include:

Rent or Mortgages, depending on the circumstances, an Optometrist may rent or mortgage a practice, whatever his decision, the amount paid is considered a monthly expense.

Employees and staff, incur a monthly expense of payroll that includes taxes and employee benefits. It’s crucial to keep those expenses at their minimum especially when you seek funding for new equipment since lenders require those expenses to be within a certain percentage.

Marketing, expenses are higher in newly launching practices and less significant in established practices.

Laboratory expenses include lens surfacing and edging independently whether they are performed in-house or outsourced. Utility expenses include office maintenance expenses (electricity, snow removal, cleaning, …), expenses related to activities, as well as expenses related to purchased items (cases, lens cases, lens cleaning clothes, …)

Legal and accounting expenses, as well as contracts and licenses related to software and IT.

Expenses related to professional and personal development including CE courses, participation in seminars, and organizations membership.

You need to make sure that the Optometry practice is running smoothly, in a profitable way, and with a positive cash flow. You should not forget that being able to sustain a successful business and working with a good company are great experiences, however, what’s also important is to be well compensated.