Cost of Goods Sold for Chiropractor Clinic – Explained

What Is a Chiropractor?

A chiropractor is a profession of health and care. Chiropractors manipulate and adjust the parts of the body like spin. Chiropractor’s main objective is to align problems of ease pain and adjust the body to heal itself. Chiropractors perform the following services.

  1.  Dietary supplements
  2.  Relaxation techniques
  3. Heat and ice
  4. General exercises and rehabilitates exercises.
  5. Electrical stipulations

People visit for the treatment of neck pain, back pain, headaches, and low back pains.

Accounting for Chiropractor business:

Chiropractors earn money by providing their services, charge the service fees from clients. Prices include the chiropractic’s general mobility work and adjustments.

If we talk about chiropractors’ expenses, these include the clinic rents, staff salaries, medicines cost, and other administrative fees. The overheads cost is substantial, and the average cost of overheads might be 65% to 70%, and industry average profit margins will be 30% to 35%.

Cost of Sales of Chiropractors Business:

The cost of sales or service is the cost incurred to provide the services to customers. The sales cost includes direct material, direct labor, and direct overheads to sell the service or product.

The sales cost doesn’t have any fixed cost that can’t be changed with the volume of product sales or service rendered. If cost is changing the revenue activity, it will be included in sales cost or cost of revenue.

Cost of Revenue for Chiropractic Business:

The primary revenue is to render the service to the patients and charge fees against the use. Any cost for generating the service will be included in the cost of sales; if the cost varies with service rendering, the mean cost is also changing with the service volume.

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The high cost for Chiropractors’ business is rental cost, utility cost, and staff cost. Both costs might not be included in the revenue cost if they are wholly, solely not occurred, for performing the service. These costs will be part of administrative expenses or other operating expenses for a chiropractic business.

Now the question is, what is the cost of sales for chiropractic business?

Components of cost of sales for Chiropractic Business:

  • Raw Material:   Raw material for Chiropractic business is medicine (Dietary Supplements, Pain Killers, etc.)
  • Direct Labour:  Direct labor of Chiropractic business staff used to perform the service like daily clinical staff wages.
  • Direct Overheads:  Direct expenses includes the utility expenses to operate the electrical instrument and other variable overheads.


Costing is very important for any business to evaluate the financial performance of any business. Chiropractic business includes 60% to 65% of expenses, which have the cost of selling is approximately 20% to 25%.

This a significant part of the cost of the business, so it can’t be ignored. It is necessary to understand and manage the business’s cost of revenue for a Chiropractic to evaluate the business’s financial performance.

I hope this article will clear all the questions related to the Chiropractic business; if you have any questions about the chiropractic business, leave a comment. I will try to respond on a priority basis.