Dental production, adjusted production and collections are different measures. Reconcile the practice-management records to payments, adjustments and bank deposits. Use the approved accounting basis for financial reports; gross treatment charges are not automatically earned revenue or available cash.
A production report and a bank statement answer different questions. Before explaining a gap, check whether the report shows gross charges, adjusted production or collections. Then identify the reporting period and which transactions are included. A mismatch is a reconciliation question, not proof that money has disappeared.
What is production versus adjusted production?
The American Dental Association distinguishes gross production from the amount considered collectible after adjustments. A fee-schedule charge can differ from the amount allowed under an agreement. Collections measure payment received, including payment for work recorded in an earlier period.
Do not label gross production as financial-statement revenue without reviewing contractual adjustments and the reporting basis. An owner can monitor these operational measures alongside the books without pretending that each is the same number.
How can you explain the collections gap?
Use a receivable rollforward that connects the opening balance, posted charges, approved adjustments and payments to the closing balance. Trace payment batches from the practice system through the processor or payer remittance to the bank. Keep deposits in transit and unapplied patient payments identifiable.
Illustration only: $24,000 opening receivables plus $80,000 charges, less $18,000 approved adjustments and $61,000 payments applied, leave $25,000 closing receivables. Bank deposits may differ because of timing, fees or unapplied payments. Do not plug the difference into revenue.
When should overdue balances be reviewed?
Use payer and patient aging with claim status, follow-up ownership and relevant deadlines. There is no universal 45-day rule that makes a balance uncollectible. A recently denied claim may need attention before an older balance awaiting documented payment.
Have the billing team explain unresolved claims and approved write-offs. Bookkeeping can reconcile approved balances and adjustments; that does not authorize coding, appeals, patient collection work or changes to payer contracts.
Which equipment records belong with the CPA?
Retain purchase invoices, financing documents, business-use details and the date equipment is ready and available for use. Separate equipment, repairs, supplies and improvements according to the approved policy. A chart-of-accounts label does not create a Section 179 deduction.
IRS Publication 946 describes qualifying property and limitations. The tax professional determines whether an election or other treatment applies for the relevant year. Avoid promises that routine categorization captures every deduction or that a generalist would miss it.
How should owner pay and payroll appear?
Keep payroll, distributions, reimbursements and capital transactions distinguishable, based on the entity and approved arrangements. Reconcile payroll reports to liabilities and bank payments. Do not assume a transfer to the owner is an operating expense.
Provider or location reports need a stated allocation method for shared wages, laboratory charges and overhead. Label estimates and incomplete data. Neither an adjusted production figure nor a provider contribution report is a substitute for the practice's complete financial statements.
What must be settled before sharing records?
Patient-level remittances and receivable reports can contain protected information. Establish permitted access, required agreements and safeguards before transferring them. HHS identifies accounting services involving protected health information as a potential business-associate relationship. A generic promise to handle data carefully is insufficient.
Start a discussion with aggregate, non-patient-identifying reports where appropriate. Do not send patient details through Daxable's public contact form. This guide does not claim HIPAA certification, medical-billing capability or tax filing.
Existing dental bookkeeping information remains available. Confirm current fit and a written scope before engaging a provider. Daxable's CPA handoff information explains the distinction between organized bookkeeping support and the tax professional's work.
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Frequently Asked Questions
Is production the same as revenue or cash?
No. Gross production, adjusted production and collections measure different activity. Reconcile the reports and apply the approved accounting basis before treating a figure as financial-statement revenue.
Must dental receivables be written off after 45 days?
No universal 45-day rule applies. Review aging alongside payer status, documentation, deadlines and the practice's approved adjustment policy.
Does coding equipment correctly guarantee a tax deduction?
No. Keep the purchase and placed-in-service evidence. The tax professional determines eligible depreciation or elections and applicable limitations.
Can I send patient reports through the contact form?
No. Do not send patient details through a public enquiry form. Confirm permitted access, safeguards and any required agreements before sharing protected information.