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Although net profits have increased, they don't tell the whole story. That's according to the annual Benchmarking Report data released by NASDAL (National Association of Specialist

Dental Accountants and Lawyers) for the financial period, 2021-22. This has shown: * Overall, increased net profit across the board. This was to be expected as practices were closed for 2-3

months of the previous year due to lockdown * An increase in average net profit per principal from £152,414 to £168,826 for a typical dental practice * Private practices see a big jump

increase in average net profit per principal: £143,418 to £178,513 * Mixed practices see an increase in average net profit per principal: £168,326 to £177,072 * NHS practices see a small

increase in average net profit per principal: £145,498 to £150,894 * Associate average remuneration is up for the first time in a number of years from £63,304 to £75,488. Ian Simpson,

Chartered Accountant and a partner in Humphrey and Co, which conducts the statistical exercise commented: 'The increase in profits was to be expected due to lockdown in the previous

year. The increase was seen by all practices but NHS practices only saw a marginal increase compared with those experienced by mixed and private practices. In fact, there was a differential

of more than £25,000 in both cases. NHS practices cannot pass on increased material and wage costs and this may worsen over the next year - for instance, these figures have not taken into

account inflation of over 10% and the massive energy price increases that have occurred more recently. 'The increase in associates' income is welcome but in reality only reflects

their earning of private income over a full twelve months rather than nine or ten of the previous year. As we look forward to the 2023 figures, we might expect to see NHS practice profits

fall back further and a possible slowdown in the growth in private practice profitability.' Heidi Marshall, of Dodd & Co, Specialist Dental Accountants and Chair of NASDAL observed:

'It is important I think to view the 2022 figures in a wider context. Whilst there have been increases in the profitability of all practices, it is worth noting that NHS profits are

still at a similar level to that of 15 years ago.' Johnny Minford, Principal of Minford Chartered Accountants and NASDAL Media Officer added: 'The NASDAL annual profit and loss

benchmarking report is a unique and valuable tool which enables NASDAL accountant members to compare their practice owning clients with industry norms. It means that we help our clients

really understand what is happening in their dental business.' 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. The basis of the survey figures is 2022 tax returns and accounts with year ends up to 5 April 2022. RIGHTS AND PERMISSIONS

Reprints and permissions ABOUT THIS ARTICLE CITE THIS ARTICLE Increases 'not the whole story'. _BDJ In Pract_ 36, 7 (2023). https://doi.org/10.1038/s41404-023-1951-8 Download

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