What Is Budget Variance in Dental Practices?
Budget Variance is the difference between what your dental practice planned to spend or earn (your budget) and what actually happened (your real figures).
It’s a key financial indicator that helps you understand whether you’re overspending, underperforming, or ahead of plan — and why.
Budget variance is measured in both absolute £ terms and % terms, and it applies to both income and expenses.
Why Budget Variance Matters for Dental Practice Owners
Creating a budget is important — but tracking variance is where the insight lives.
Without analysing where reality diverges from your plan, you miss:
- Hidden overspends on labs, staffing, or marketing
- Missed revenue targets due to cancellations, underbooking, or associate gaps
- Recurring trends that silently pull profit away from your bottom line
Example:
If you budgeted £7,000/month for lab fees and spend £9,800 instead, that’s a +£2,800 variance (+40%).
But if collections were also below plan, the true impact is even worse.
What Types of Budget Variance Exist?
| Type | Description |
| Revenue Variance | Actual collections fall short (or exceed) budgeted income |
| Cost Variance | Spending is higher or lower than planned in a specific category |
| Volume Variance | Less patient flow or fewer UDAs than expected |
| Price Variance | Discounts or pricing errors reduce revenue per treatment |
| Timing Variance | Expenses or income shifted between months (not necessarily wrong, but impactful) |
Variance analysis isn’t just for accountants — it’s a profit protection tool.
How DentPulse Tracks Budget Variance Automatically
| Feature | Function |
| Monthly Variance Report | Compares actual vs. budget by line item, department, and team |
| Red–Amber–Green Alerts | Flags major deviations based on % thresholds you set |
| EEE™ Integration | Shows how budget variance impacts EBIT and owner profitability |
| Variance Attribution Engine | Links root cause to events (e.g., staff change, supplier increase, treatment plan falloff) |
| CFFP™ Forecast Link | Adjusts future inflow/outflow based on recurring variance patterns |
DentPulse doesn’t just show numbers — it shows what changed, why, and what to fix.
DentPulse Tip™
A budget is just a theory.
Variance shows the truth.Use DentPulse to track variance in real time — not once a year at your accountant’s office. This turns financial planning into financial leadership.
Related Glossary Terms
- Forecasting – Predicting future inflow/outflow before it happens
- CFFP™ – Cash Flow Future Pairing – Real-time cash flow projection engine
- EEE™ – EBIT Efficiency Engine – Shows how deviations affect profit and take-home
- Overheads – Common source of budget creep
- PPBT™ – Personal Profit Before Tax – Your adjusted profit goal after real expenses
Glossary Summary Table
| Term | Meaning |
| Budget Variance | The difference between planned vs. actual income or expenses |
| Key Risks | Overspending, undercollection, or timing mismatches |
| Strategic Role | Helps diagnose profit leaks and redirect strategy |
| DentPulse Advantage | Tracks, explains, and forecasts variance automatically — across income and cost lines |
