Accounting for dentists: five numbers to review monthly
A dental practice can be busy and still leave its owner unsure about cash, margins, and the next tax payment. Good accounting for dentists connects the practice management reports to the books, then turns those records into a few useful monthly questions.
1. Production, collections, and adjustments
Look at the work performed, what was actually collected, and adjustments recorded in the practice system. Those figures answer different questions. Reconcile deposits and receivables with the accounting records, and investigate material differences before relying on a monthly report.
2. Payroll by role
Review payroll for clinical and administrative teams separately so changes in staffing are visible. Associate compensation, hygiene coverage, and overtime can affect the picture in different ways. Your reports should make trends easy to discuss without treating every fluctuation as a problem.
3. Supplies and lab costs
Consistent categories help you compare spending across months. A large order or a delayed invoice can distort a single period, so review the underlying transactions before making a decision from a percentage alone.
4. Cash and upcoming commitments
A profit figure does not tell you when money is available. Look ahead at payroll, rent, debt payments, planned equipment purchases, and estimated taxes alongside your cash balance. That view can make the timing of a decision clearer.
5. Owner compensation and planning
Keep owner payments distinct from operating expenses and review the treatment with your CPA. As the practice changes, revisit tax projections and financial goals rather than waiting until filing season.
Bring the right records to the conversation
Recent financial statements, practice management summaries, payroll reports, and prior tax returns give a CPA for dentists a better starting point. Mona spent ten years advising within a dental service organization and brings that industry context to conversations with practice owners in the Bay Area.
This guide is general information. Accounting methods, compensation, and tax decisions depend on the practice and its circumstances. Share sensitive records through our Client Portal, not regular email.
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