Data Management Consulting

Data Management Consulting

If you're on cash basis, the numbers you're looking at are wrong!

It's likely that your DSO is still on cash basis accounting, which works fine while you only have a few locations. Cash basis means that you're looking at transactions only as money flows into or out of the bank account.

This quickly becomes a problem for dental offices, because you rarely get paid on the day you perform the service. This means that you could have an excellent January for production, but your financial books look terrible that month because you haven't collected any of it yet.

This is where our accrual accounting service comes in.

Unlike cash basis, accrual accounting records revenue when it’s earned or when services are performed, and expenses when they’re incurred, not just when cash changes hands.

For DSOs, this means your financial statements will reflect the true productivity of each month, even if insurance reimbursements or patient payments take weeks to process. This approach isn’t just best practice, it’s essential for making strategic decisions rooted in real-time performance, not cash flow timing.

Let’s ensure your books grow as intelligently as your practice does!

How it Works

Benefits of Accrual Accounting

In accrual accounting, you recognize revenues and expenses on the date they were incurred, regardless of when cash is received or paid. It's a little more complicated on the bookkeeping side, but it ensures that you have the most accurate picture of your company's financial health.

Accurate financial reporting and projections

Correct historical data to aid in better decision making and long-term business growth

Compliance with accounting standards

Follows the “Matching Principle”: better matching of revenue
and expenses

Enhances financial planning and forecasting

Supports growth and scalability

Strengthens vendor and supplier relationships

Increases business valuation

Unlock Real-Time Financial Visibility

Stop letting cash flow timing cloud your DSO’s success. With our accrual accounting help, you can gain sharper insights into profitability, capturing real data on revenue and expenses. This clarity empowers you to make smarter scaling decisions, ensuring your growth strategy aligns with real-time financial performance, and not unpredictable cash movements.