We specialize in providing bookkeeping for dentists. Over the years, we’ve worked with dentists across the U.S.—some managing their own books, others relying on a spouse, and many coming to us after working with non-specialized bookkeepers. No matter the background, we often encounter the same set of bookkeeping missteps.
If you’re a dental practice owner, here are five common mistakes that could be costing you money—or even putting your practice at risk.
1. Failing to Reconcile Bank and Credit Card Accounts Monthly
Reconciling bank and credit card accounts isn’t just a formality—it’s essential.
Without monthly reconciliations, your accounting software may be missing transactions, leading to incomplete or inaccurate financial statements. This can have serious implications:
- Missed expenses = overpaying taxes
- Unrecorded collections = higher risk of IRS notices
Ultimately, these errors can result in extra professional fees or unexpected tax bills. Reconciling monthly is one of the easiest ways to stay ahead of both.
2. Improper Loan Accounting
Dentists often take on loans during construction, expansion, or equipment purchases. Unfortunately, these loans are frequently misrecorded—or not recorded at all.
Here’s what can go wrong:
- Bank-incurred construction costs go untracked
- Equipment purchased at year-end isn’t recorded properly, which could mean missed tax deductions
- Loan balances don’t match bank statements, creating reconciliation headaches
Correctly classifying and recording loan-related entries is critical for both financial accuracy and maximizing deductions.
3. Mixing Personal and Business Expenses
It’s surprisingly common for dental practice owners to pay personal expenses from business accounts. Even worse, those personal expenses are often left in the books as business deductions—just because QuickBooks categorized them that way.
This is a major red flag for the IRS.
Beyond potential audits and penalties, commingling can have legal consequences, especially if you’re ever sued or audited. Talk to your attorney about how this affects liability protections. And always separate business and personal finances.
4. Ignoring IRS Compliance (Knowingly or Unknowingly)
Bookkeeping isn’t just about data entry. It’s about compliance.
There are IRS rules that must be followed—rules that non-specialized bookkeepers or DIYers may overlook. These include:
- How to treat employee benefits
- When to issue 1099s
- What expenses are deductible (and which are not)
If compliance issues aren’t addressed during the year, fixing them later can be expensive and stressful. We recommend getting educated on IRS rules that apply specifically to dental practices—or working with someone who already is.
5. Waiting Until Year-End to Do Your Bookkeeping
Bookkeeping often falls to the bottom of the priority list—especially when you’re juggling patient care, staffing, and daily operations.
But waiting until year-end has serious drawbacks:
- You won’t remember what that odd $1,200 expense was in March
- Your financial data won’t help with ongoing decision-making
- You lose out on opportunities to improve profitability throughout the year
Monthly bookkeeping gives you real-time insights, so you can track collections, manage overhead, and make informed decisions that grow your practice.
A Good Bookkeeper Does More Than Record Transactions
Bookkeeping is more than data entry. A knowledgeable, industry-specific bookkeeper can help you:
- Keep your books up to date each month
- Flag potential compliance issues early
- Answer common business-related questions
- Provide profitability insights unique to dental practices
- Serve as a trusted advisor—not just a number cruncher
Ready to Get Expert Help With Your Bookkeeping for your Dental Practice?
If you’re tired of second-guessing your financials, frustrated with last-minute scrambling at tax time, or simply want more time to focus on patient care—we can help.
We specialize in bookkeeping for dentists, and we understand the unique financial and compliance needs of dental practices. Whether you’re starting fresh or cleaning up years of messy books, we bring the experience, tools, and insight to keep your practice financially healthy and IRS-compliant.
📞 Call us today at 512-497-4946 to schedule a free consultation and find out how we can support your dental practice with customized, proactive bookkeeping solutions.
Let us handle the books, so you can focus on smiles.
