End-of-Year Accounting Checklist for Dental Practices

As the end of the year approaches, dental professionals are not only focused on patient care and team celebrations, but they’re also faced with a critical, often daunting task: closing out their financial year successfully. 

An organized year-end accounting process can have a significant impact on your tax position, cash flow clarity, and practice growth strategy heading into the new year. With the help of specialized dental CPAs like Jonathan VanHorn and the team at Tooth & Coin, dentists can feel confident and in control of their finances during this important time.

Review and Reconcile All Financial Records

Start your year-end accounting with a full review of your accounting records. Ensuring your books are clean and up-to-date is non-negotiable. You can’t make strategic decisions from messy data. Reconcile all bank accounts, credit cards, and loans to ensure they match your accounting software.

This step alone often surfaces errors or overlooked transactions that could impact your tax liabilities or profitability reports. Here’s what to prioritize in your review:

• Double-check your income statements and balance sheets for accuracy
• Ensure all expenses and revenue streams are recorded through Dec 31
• Look out for duplicate or miscategorized transactions
• Reconcile merchant service deposits against your bank statements

Evaluate Tax Position and Plan Strategically

Tax season doesn’t truly begin in April. It starts now. A proactive tax review at year-end helps you take advantage of available deductions, reduce tax liability, and avoid last-minute scrambling. 

Dentists often overlook strategic tax planning opportunities, but with a full-service financial team like Tooth & Coin, you can identify smart moves before closing out the books. Key steps in tax planning include:

• Running year-end profit analysis to estimate tax obligations
• Exploring equipment purchases or other capital investments
• Reviewing retirement plan contributions or end-of-year bonuses
• Meeting with your dental CPA to finalize write-offs and deferrals

Analyze Practice Performance and Set Goals

Year-end isn’t just about cleanup. It’s the ideal time to assess how your practice performed financially and operationally. Go beyond just looking at what worked or didn’t; use your numbers to drive growth into the new year. 

Tools like those provided by Tooth & Coin not only deliver insights but also empower you through education and clear metrics tailored for dental business owners. To get the most out of your analysis, focus on:

• Comparing year-over-year revenue and profitability
• Reviewing expense ratios and opportunities to cut waste
• Identifying untapped revenue streams or service opportunities
• Setting clear, measurable goals for Q1 and beyond

Update Compliance and Prepare for the New Year

Lastly, make compliance and operational readiness a priority. This includes more than just tax paperwork. It means making sure licenses, insurances, and HR documents are in order to avoid disruptions. 

With accounting and advisory services tailored specifically for dental practices, Tooth & Coin ensures everything from payroll tax filings to 1099 contractor reporting is handled, stress-free. Your compliance checklist should include:

• Issuing W-2s and 1099s by required deadlines
• Reviewing employee classifications and contractor statuses
• Verifying business licenses and insurance renewals
• Backing up all financial data before closing books

Schedule a Year-End Financial Review in Little Rock

Ready to enter the new year with clarity and confidence? Tooth & Coin offers dedicated year-end financial reviews for dental practices both in Little Rock and across the nation. Partner with Jonathan VanHorn and his team to streamline your finances, reduce your tax burden, and set your practice up for success. Let’s lighten your load so you can focus entirely on patient care. Schedule your strategy session today.