Dental Practice Balance Sheet Template

Next, complete the AR Aging sheet. Pull your accounts receivable aging report from your practice management software (Dentrix, Eaglesoft, Open Dental, or your billing system) and enter outstanding balances by payer class and aging bucket. The sheet calculates your net collectable AR and feeds the realistic balance into current assets — not the gross billed amount, which overstates the asset considerably in a dental practice with PPO fee write-offs. Then fill in the rest of the balance sheet: operating cash from your bank statement, dental supplies inventory from your supply closet count, prepaid malpractice insurance from your premium schedule, patient credit balances from your billing system's credit balance report, lab fees payable for outstanding crown and denture cases, and accounts payable from your dental supply vendor aging.

Three line items on a dental practice balance sheet deserve particular attention. First, insurance AR should be carried at net realizable value after contractual adjustments — PPO and HMO fee schedules typically require write-offs of 20–40% of gross billed charges, and Medicaid write-offs are often higher. Carrying gross billed AR on the balance sheet overstates assets and gives a misleading picture of practice liquidity. Second, patient refund liability: when insurance overpays, when a patient overpays their portion, or when a treatment is cancelled after payment is received, those credit balances are a liability until returned. Third, lab fees payable: dental practices with active restorative and prosthetic cases often carry $5,000–$20,000 or more in outstanding lab work that has been delivered but not yet paid for — these are a real current liability that should be separated from general accounts payable.