The short answer
Bookkeeping for dental practices means reconciling what your practice management software reports as collected to what reached the bank, recording insurance write-offs and adjustments correctly, and tracking lab fees, supplies, equipment loans and associate pay. AZ Easy CPA sets up QuickBooks for dental offices in Arizona and reconciles it every month.
Why don't production numbers match my bank account?
Production is what you did in the chair at your full fee. Collections are what patients and insurance companies actually paid. The difference comes from insurance write-offs, adjustments, unpaid balances and timing. Your books should be built on collections, with clear reports that show how production turns into cash.
Many dentists look at a strong production report and wonder why the bank balance feels thin. Contracted fees with PPO plans, patient balances still outstanding and claims that take weeks to pay all shrink what lands in your account.
| Term | What it means | Where it shows up |
|---|---|---|
| Gross production | Procedures at your full office fee | Practice management reports |
| Adjustments and write-offs | Contractual reductions and courtesy discounts | Practice management reports |
| Net production | Production after adjustments | Practice management reports |
| Collections | Money actually received | Bank deposits and QuickBooks |
Each month we reconcile your collections report to your deposits so you know the income in QuickBooks is real.
How do you handle insurance write-offs and adjustments?
Write-offs and adjustments live in your practice management software, and the money that arrives lives in your bank. We reconcile the two so income in QuickBooks reflects what you collected. Tracking adjustment totals over time also helps you see how much each insurance plan is really costing the practice.
We work from the month-end reports in Dentrix, Eaglesoft or Open Dental, along with insurance payment details and card processor statements. Patient payments, insurance checks, electronic payments and financing company deposits each get recorded the right way.
- Insurance payments matched to deposits
- Patient financing deposits recorded net of fees, with the fee shown
- Refunds and patient credits tracked
- Card processing fees recorded as an expense
What expenses should a dental office track separately?
The biggest ones are dental supplies, lab fees, staff and associate pay, rent, equipment and software. Keeping each in its own account lets you compare them to collections over time. Lab fees in particular are worth tracking on their own, since they tie directly to the crown, bridge and appliance work you produce.
When everything lands in one supplies account, you lose the ability to see what is changing. We set up a chart of accounts that fits a dental office, so your profit and loss shows meaningful overhead ratios: each cost category as a share of collections, month after month.
- Dental supplies and small instruments
- Lab fees by lab, if useful
- Hygiene, front office and associate costs
- Equipment repairs and software subscriptions
- Marketing and patient acquisition
How are dental equipment loans recorded?
A loan for a chair, imaging system or buildout is not an expense when you make the payment. Each payment splits into principal, which lowers the loan balance, and interest, which is an expense. The equipment itself goes on the balance sheet. We set up these accounts and reconcile them to your lender statements.
Practice acquisition loans, equipment financing and leases are common in dentistry, and they are often recorded wrong. When the loan balance in QuickBooks does not match the lender, your balance sheet and profit are both off.
Tip: keep your loan and lease agreements in one folder. Chris will ask for them during setup so every balance can be tied to its paperwork.
Clean balance sheet records also help if a lender ever asks for financial statements. Our compilation services can help when that happens.
How should associate dentist pay be tracked?
Associates are often paid a percentage of collections or production, sometimes with a daily minimum. Whether they are W-2 employees or 1099 contractors, we record their pay in its own account so you can compare associate cost to what their chair brings in. Payroll is processed through our partners.
If an associate is paid on collections, the collections report by provider becomes important. We can use it to help you check that pay calculations line up with the numbers. Payroll runs through our trusted payroll partners, and we make sure the entries land correctly in QuickBooks.
How do we get started?
Free phone call
Tell Chris about your practice, your software and what feels off in the numbers.
Review reports and books
We compare your practice management reports to QuickBooks and the bank.
Set up dental accounts
We build a chart of accounts for a dental office and fix loan and equipment balances.
Monthly close
Each month we reconcile collections and send reports you can actually use.
Dental Practices questions
Which practice management software do you work with?
We work from the financial reports in common dental systems such as Dentrix, Eaglesoft and Open Dental. We only need payment and collections reports, not patient charts.
Should my books show production or collections as income?
Most small dental practices record income based on collections, since that is the money actually received. Production reports are still useful for managing the practice, and we help you see how the two relate.
Can you help if I just bought a practice?
Yes. Acquisitions involve loans, equipment and sometimes goodwill on the balance sheet. Chris can set up QuickBooks so the purchase is recorded correctly from the start.
Do you prepare tax returns for dental practices?
No. We do not prepare tax returns in house. We keep your books ready for your tax preparer, and we can connect you with one of our tax partners.
How much does dental bookkeeping cost?
Monthly bookkeeping plans typically start around $300 a month, depending on transaction volume, accounts and complexity. We quote your plan after a free call.
Can you meet with me to review the numbers?
Yes. Monthly bookkeeping includes strategy sessions to review results, either remotely or in person at our Chandler office.
Bookkeeping near you
From our Chandler office we work with businesses across the East Valley and Arizona, in person or online.
