Dental Accounting

Your dental practice makes good revenue. Is it making good profit?

Lab costs, PPO write-offs, associate splits. Dental accounting has moving parts your general CPA is not tracking. We track all of them.

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A 4-minute test your accountant hopes you skip.

At a glance

Investment$3,000–$4,000/mo
Contract1-year, billed monthly
Setup$3,000–$9,000 onboarding
IncludesMonthly P&L, balance sheet, provider production reports

Is This Right for You?

This service is for dental practice owners who recognize these problems:

Lab costs went up 15% this year and you have no idea which lab is the most expensive
Your PPO write-offs are buried somewhere in a spreadsheet your office manager updates when she remembers
You opened a second location and now you cannot tell which one actually makes money
Associate compensation is eating into margins but you are not sure by how much because production reports do not match your P&L
Supply costs feel out of control but you have no benchmark to compare against

Need strategic financial leadership? Our Fractional CFO service for dental practices may be a better fit.

What's Included

How We Work With Dental Practices

Dental-specific accounting that goes beyond reconciliation.

01

Lab & Supply Cost Tracking

  • •Per-case lab cost analysis by procedure type
  • •Supply cost benchmarking against industry standards (5–6% of revenue)
  • •Vendor comparison and consolidation opportunities
02

Multi-Location P&L Separation

  • •Location-specific revenue and expense tracking
  • •Shared overhead allocation methodology
  • •Per-location profitability dashboards
  • •Transfer pricing for shared resources
03

Provider Production & Compensation

  • •Production-to-collection reconciliation per provider
  • •Associate compensation modeling (percentage vs salary vs hybrid)
  • •Hygienist production tracking per hour worked
04

PPO Write-Off Accounting

  • •Write-off tracking by insurance plan
  • •Effective reimbursement rate per procedure per payer
  • •Fee schedule analysis and adjustment recommendations
  • •Impact modeling for PPO contract changes

Results

What Dental Practices Experience

MetricTypical Outcome
Annual lab savings$58,000 through vendor consolidation
Revenue recovered$137,000 from coding corrections and payer renegotiations
Overhead reduction71% down to 59% within 8 months

Case Study

See The System In Action

4-provider dental group, two locations, mix of GP and pediatric. Overhead had climbed to 71% over three years despite steady revenue growth. The owner felt busier than ever but the bank account told a different story.

What we found:

  • •Lab costs were running at 8.7% of revenue, nearly double the 5% benchmark, because three different labs were being used with no cost comparison
  • •PPO write-offs averaged 38% but ranged from 22% to 51% across plans, with the highest-write-off plan representing 30% of patients
  • •The second location was generating $180K less revenue but carrying $95K more in overhead due to duplicate staffing
  • •Hygiene was coding 85% of perio patients as prophylaxis instead of the appropriate perio maintenance code

The results

$58,000 through vendor consolidation

Annual lab savings

$137,000 from coding corrections and payer renegotiations

Revenue recovered

71% down to 59% within 8 months

Overhead reduction

“I had no idea my lab costs were that far off. That one finding paid for two years of Sorso's fees.”

— Practice Owner, Southeast

Common Questions About Accounting for Dental Practices

Don't pay for reports. Pay for progress.

Take the 4-minute financial assessment—and find out if your books are helping or hurting your dental practice.

Take the Free Financial Assessment →

The test your accountant hopes you skip.