Dental Practice Sale Accounting Cleanup

Clean financials command premium valuations. Buyers and lenders scrutinize practice records—accounting cleanup before sale eliminates red flags and maximizes value.

12-18 Months Before Sale

Switch to Accrual Accounting

• Matches revenue and expenses properly
• Shows true profitability
• Preferred by buyers

Separate Personal Expenses

• Document all add-backs
• Owner distributions vs. expenses
• One-time vs. recurring costs

Revenue Recognition

• Record when earned (not collected)
• Track production vs. collections
• Document adjustment patterns

6 Months Before Sale

• Reconcile all accounts
• Clean up accounts receivable
• Document inventory
• Prepare financial statement package

Conclusion

Accounting cleanup is essential for maximizing sale price. Start 18 months before your target sale date.

Need accounting help? Contact DentalBridge.