Dr. Hayes Blog

Jerry Hayes, OD presents a variety of tips and tactics designed to
bring more dollars to your bottom line. You are invited to
comment on the topics we cover.

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What Is The Best Way To Treat Auto Expenses For Practice Partners?

By Jerry Hayes OD | 12/29/2008 - 11:00 am

Richard Jablonski, OD writes:

We just incorporated in 2007, and would like to defer or transfer some car expenses for co-owners of my practice.

One current vehicle has about 3 years to pay off, and I am going to purchase another used car, but new to me.

What is the best way to do this? How can I equalize car expense allowance for the two partners? Should I




How Should I Expense My Optos?

By Jerry Hayes OD | 12/22/2008 - 11:00 am

Michael Raff, OD writes:

Do your recommended limits on leasing remain the same for leases on equipment such as an Optos, which generates income?

Thank you for sharing this valuable information. I have had my solo practice for nearly 12 years and have never seen guidelines such as these to help me conform to recommended percentages of rent/maintenance vs. annual gross figures.

Jerry Hayes, OD responds:

Even though the Optos does generate income on a per procedure basis, I still think you have to expense it under




Occupancy Costs: “What About Regional Differences?”

By Jerry Hayes OD | 12/17/2008 - 5:20 pm

Dr. J. writes:

It seems to me it would not be easy to put a set percentage of gross on your office space costs. There is such a large variance on the cost of space across the country.

I live and practice in Williamson County in Tennessee. This is one of the top 50 counties in the U.S. for gross income. I have a small practice that grosses about $400,000.00 a year.

Using your formula, my 2,000 square foot office should be renting for




Last-Minute Tax Tips For ODs

By Jerry Hayes OD | 12/15/2008 - 2:02 pm

I recently spoke with J. R. Armstrong, CPA for some ideas on last-minute tips to help you lower the tax bill you will pay in April 2009 for income earned in 2008. His firm, May & Company, LLP, in Vicksburg, MS does tax work for over 100 ODs in 29 states. Here is what he had to say:

• Harvest capital losses on stocks that are down — most everyone’s portfolio has some losers; consider selling securities at




How Much Does An OD Practice Gross Each Year?

By Jerry Hayes OD | 12/8/2008 - 1:53 pm

Jay H Messinger, OD writes:

Jerry, I discussed your overhead percentages with my CPA who was interested in knowing the average gross of the practices surveyed. Would you provide me with this information?

Jerry Hayes, OD responds:

I like to remind my readers that these percentages and benchmarks are not 'my' numbers. They are 'yours'.

By that I mean, the percentages published in my last blog represent a compilation of what a broad range of private practice owners from across the country report spending on their 7 Key Expense Areas. It is not necessarily what Jerry thinks you should do.

Your question about gross income is a good one. When discussing the topic of collected gross revenue for an independent optometric practice, be sure to clarify whether you are answering in terms of 'per practice' or 'per OD'.

$500,000 in collected gross revenues is a good round number if you are looking for the median (half do more, half do less) production per




How Should We Approach Staff Bonuses In A Tough Economy?

By Jerry Hayes OD | 12/8/2008 - 1:04 pm

David Sausner, OD writes: 

With the questionable state of the economy, I was wondering if there is any feedback on staff year-end/Christmas bonuses. I have previously based bonuses on a “profit sharing approach” (not a true profit sharing); the better the business, the better the bonus.

While the numbers for this year have been consistent with last year, increased overhead and projected business environment are weighing on my mind. I know many businesses have cut or eliminated bonuses for this year.

Jerry Hayes, OD responds:

Let me open by inviting other practice owners to post their thoughts on what is a very good question.

This is what I would need to know to answer your question: