Monthly Bookkeeping Checklist for Dental Practices

Running a dental practice comes with a long to-do list. Between patient care, team management, and keeping supplies stocked, it’s easy for financial tasks to get pushed aside. But staying on top of your books is just as important as staying on schedule with your patients.

Good bookkeeping helps you understand where your money is going, plan for the future, and avoid surprises when it’s time to file taxes. To help make things easier, we’ve put together a simple, monthly bookkeeping checklist designed specifically for dental practice owners.

This checklist will help you stay organized, catch issues early, and keep your finances in good shape all year long.

1. Reconcile Your Bank and Credit Card Accounts

At the end of each month, compare your bank and credit card statements to your bookkeeping records. This process is called “reconciling” your accounts.

Doing this helps you:

• Catch duplicate or missing transactions

• Spot any incorrect charges or fees

• Make sure your books match your actual account balances

If you skip this step, your financial reports could be way off—making it hard to know how your practice is really doing.

2. Record and Categorize All Transactions

Every payment you receive and every expense you make should be entered into your books. This includes:

• Patient payments

• Insurance reimbursements

• Supply and lab costs

• Equipment purchases

• Payroll and contractor payments

• Rent, utilities, and software fees

Make sure each transaction is categorized correctly. For example, supplies go into one category, marketing into another, and so on. Over time, these categories help you see where your money is going and where you can cut back if needed.

Accurate tracking is one of the most important parts of bookkeeping for dentists because dental offices have many types of income and expenses that need to be managed correctly.

3. Review Outstanding Invoices and Payments

Each month, review your accounts receivable—money that’s owed to you. Check for:

• Unpaid invoices from patients

• Delayed payments from insurance companies

• Payment plans or financing agreements

Follow up on any overdue payments. The longer you wait, the harder it becomes to collect. Staying on top of receivables helps your cash flow stay strong and reduces the risk of lost income.

4. Pay Bills and Review Upcoming Expenses

Just like you want patients to pay you on time, you need to pay your own bills too. This includes:

• Vendor invoices

• Credit card balances

• Loan or lease payments

• Utilities and internet

• Team payroll

Before paying, double-check that everything looks correct. Then, look ahead to next month and make sure you’ll have enough in your account to cover upcoming costs.

This step helps you avoid late fees and build trust with your vendors and staff.

5. Review Your Profit and Loss Statement

Your profit and loss (P&L) statement is one of the most valuable tools you have. It shows how much your practice earned, how much it spent, and how much profit was left over.

Each month, look at:

• Total income vs. total expenses

• Any unusual or unexpected costs

• Profit margins on services you offer

Reviewing this report monthly helps you spot trends and make better financial decisions. For example, if lab fees suddenly spike, you can investigate and find out why.

6. Monitor Cash Flow

Even profitable practices can run into trouble if cash flow isn’t managed. Your cash flow statement shows how money is moving in and out of your business.

Look for:

• Times when expenses are higher than income

• Delays in insurance or patient payments

• Big upcoming purchases that might strain your cash

Keeping an eye on cash flow ensures you always have enough money to pay your bills and avoid financial stress.

7. Back Up Financial Records

It’s important to back up your financial records each month. Whether you use cloud-based software or a local system, make sure your data is secure and easy to access if something goes wrong.

Also, save copies of receipts, invoices, payroll records, and bank statements. Keeping clean records is helpful if you’re ever audited—and it makes tax time much smoother.

8. Meet with Your Bookkeeper or CPA

Once a month, take 15–30 minutes to talk with your bookkeeper or CPA. Ask questions, review reports, and make sure everything is up to date.

Even if you don’t have questions, regular check-ins help you catch issues early and stay informed about the financial side of your practice.

Working with someone who understands bookkeeping for dentists can make a big difference. Dental practices have unique needs, from equipment depreciation to insurance billing, and a dental-focused bookkeeper can help you manage those details with ease.

Final Thoughts

Bookkeeping doesn’t have to be stressful or overwhelming. With a simple monthly checklist, you can stay organized, avoid common mistakes, and make smarter financial decisions for your dental practice.

Consistency is key. When you keep up with these tasks month by month, you’ll save time, reduce surprises, and build a stronger, more profitable practice.

Whether you handle your books yourself or work with a pro, following a checklist like this will help keep your finances on track—and let you focus more on your patients and less on your paperwork.