For CPA and accounting purposes, loan payments are split between interest and principal. The principal portion is a reduction of a liability, not an expense. For practice management purposes, include the entire loan payment as it still represents real money that needs to be earned and paid out. That way you know what your BAM is.
Kevin Tighe, Cambridge Dental Consultants, Senior Consultant, got bitten hard by the business and marketing bug during long summer days working at his dad's Madison Avenue ad agency. After joining Cambridge as a seminarist in the mid-1990s, Kevin went on to become Cambridge’s senior consultant and eventually CEO. Cambridge Dental Consultants is a full-service dental practice management company offering customized dental office manuals. Frustrated? High overhead? Schedule a chat with Kevin at .