Dental Practice Accounting & CPA Services

A dental CPA handles a practice's bookkeeping, payroll and taxes, then uses those numbers to help the dentist make decisions. That covers overhead and collections tracking, tax planning for the owner and the practice, associate compensation, and financial review when buying, selling or expanding. A general accountant usually stops at recording transactions and filing returns.

You don't have to use one, but most practices benefit. Dental practices have their own cost structure (lab fees, supplies, hygiene and associate pay) and their own tax questions, such as equipment depreciation, S corporation compensation and practice goodwill. An accountant who works with dental practices can help you decide which numbers to watch.

It depends on transaction volume, the number of locations, payroll size and whether you want CFO-level reporting. We quote a flat monthly fee after a short call, so you know the cost before you start. Fractional CFO support is available on a monthly retainer quoted to your practice's needs.

Yes. We're based in Lisle, IL and work with dental practices nationwide. Bookkeeping, payroll and tax work is done remotely through secure portals and video meetings. We prepare federal returns and state returns wherever the practice files.

Yes. Before you buy, we review the seller's financials, normalize the earnings and flag risks. After closing, we set up the entity, the chart of accounts, payroll and the purchase-price allocation, which drives how goodwill and equipment are deducted.

Accounts receivable (A/R) is money owed to the practice for care already delivered: balances due from insurance carriers and balances due from patients. Dental offices usually review A/R aging, which groups balances by how long they have been unpaid, so older balances get follow-up before they become write-offs.

Divide collections by adjusted production for the same period. Adjusted production is production minus the write-offs and adjustments you agreed to with insurers. For example, $90,000 collected on $100,000 of adjusted production is a 90% collection ratio. Track it monthly and compare it with your own history.

Overhead is the cost of running the practice, usually staff, supplies, lab fees, facility and other operating costs. The overhead ratio is total operating expenses divided by collections, often shown with owner compensation excluded. Looking at each cost category separately shows which expense is changing.

Often, yes, but the timing depends on the rules. Qualifying equipment can be deducted under Section 179 up to an annual IRS limit ($2,560,000 for taxable years beginning in 2026) or through bonus depreciation, and what is left is depreciated over several years. Business use, taxable income and financing details all matter, so talk to your CPA before you buy.

In an asset purchase, the price is allocated among asset classes and reported on Form 8594. Goodwill and certain other intangibles are amortized over 15 years, while equipment is usually depreciated faster. The allocation is negotiated between buyer and seller, so it is worth planning with a CPA before the purchase agreement is signed.

If the practice is taxed as an S corporation, the IRS expects a shareholder who works in the business to be paid reasonable compensation as wages before taking distributions. Sole proprietors and partners are not paid wages. How you are paid depends on your entity type, so confirm it with your CPA.