Setting Up Monthly Close Procedures for Dental Clients

Your dental client's monthly close is chaos. Data arrives late, reports do not match, and you spend more time chasing information than analyzing it. Here is how to fix that permanently.

Why Monthly Close Matters

For dental practices, monthly close is when the financial picture comes into focus. Production, collections, adjustments, and cash flow all get reconciled and reported.

When monthly close works well, practice owners get reliable financial statements, you can provide meaningful analysis, and nobody spends days tracking down missing information.

When monthly close is broken, everyone suffers. The practice owner does not trust the numbers. You waste time on detective work instead of value-added services. Issues compound month after month.

This guide covers how to establish monthly close procedures that work consistently, reduce your effort, and deliver better results for your dental clients.

The Monthly Close Framework

Define the Timeline

A clear timeline is the foundation of effective monthly close.

Recommended timeline for dental practices:

Day	Task
1-2	Client submits PMS reports and bank access verified
3-4	Bank reconciliation completed
4-5	Insurance revenue reconciliation
5-6	Patient payment verification
6-7	Credit balance and AR review
7-8	Adjusting entries and cleanup
8-9	Financial statement preparation
9-10	Review and client delivery

This 10-day close is achievable for most dental practices. Larger or more complex clients may need additional time.

Set Client Expectations

Before implementing procedures, align with your client on:

What you need from them:

Timely report submission
Access to systems and bank accounts
Availability to answer questions
Approval on adjusting entries if required

What you will deliver:

Reconciled bank accounts
Accurate financial statements
Variance analysis and commentary
Deadline for completion

What happens if they miss deadlines:

Close gets delayed
Additional fees if rush work required
Communication protocol for delays

Put these expectations in writing. Include in your engagement letter if possible.

The Monthly Close Checklist

Pre-Close Preparation (Days 1-2)

Before you can close, you need the data.

From the practice:

Production report (by provider if multi-provider)
Collection report (by payment type)
Adjustment report (with reason codes)
Deposit report (daily deposits for the month)
AR aging report
Credit balance report
Any unusual transactions to note

From external sources:

Bank statements (all accounts)
Credit card merchant statements
Loan statements (if applicable)

System access verification:

Bank online access working
PMS access working (if you have it)
Accounting software access confirmed

Create a submission checklist for your client. Send it before month-end so they know what to prepare.

Bank Reconciliation (Days 3-4)

Bank reconciliation is the anchor of monthly close.

Operating account:

Download or obtain bank statement
Import transactions to accounting software
Match deposits to PMS deposit report
Match payments to vendor invoices
Identify any unmatched items
Investigate and resolve discrepancies
Document reconciliation

Additional accounts:

Repeat for savings accounts
Repeat for payroll accounts
Verify sweep or transfer activity

Bank reconciliation sign-off:

All accounts reconcile
No unexplained items
Documentation complete

Revenue Reconciliation (Days 4-6)

Verify that revenue reported in PMS matches cash received.

Insurance revenue:

Compare total insurance payments in PMS to insurance deposits in bank
Investigate variances over threshold
Verify major insurance EFTs are posted
Note any unidentified insurance deposits

Patient revenue:

Compare patient payments in PMS to patient deposits in bank
Reconcile credit card payments to merchant deposits
Verify cash and check deposits
Note any discrepancies

Other revenue:

Patient financing deposits (CareCredit, etc.)
Any non-patient revenue

Revenue reconciliation summary:

Total PMS collections: $______
Total bank deposits: $______
Variance: $______ (should be minimal)
Explanation for variance: ______

AR and Credit Balance Review (Days 6-7)

Assess the quality of receivables and identify issues.

Accounts receivable:

Review AR aging
Calculate AR days
Calculate percentage over 90 days
Compare to prior month
Note any concerning trends

Credit balances:

Review credit balance report
Calculate total credit balances
Identify aged credits (over 60 days)
Note items needing client action

Adjustment review:

Review adjustment totals
Calculate adjustment percentage
Look for unusual patterns
Verify large adjustments are documented

Adjusting Entries (Days 7-8)

Make necessary adjustments to accurately reflect the month.

Standard adjusting entries:

Accrue any expenses not yet billed
Defer any prepaid expenses
Record depreciation
Adjust inventory if applicable

Dental-specific adjustments:

Write off truly uncollectible AR (with client approval)
Adjust credit balances as needed
Record any known but unposted revenue
Correct any posting errors discovered

Documentation:

Journal entry support for all adjustments
Client approval where required

Financial Statement Preparation (Days 8-9)

Prepare the reports your client needs.

Standard financial statements:

Income statement (P&L)
Balance sheet
Cash flow statement (if requested)

Dental-specific reports:

Production vs collection analysis
Collection rate calculation
AR aging summary
Provider-level production (if multi-provider)

Comparative analysis:

Month vs prior month
Month vs same month prior year
Year-to-date vs prior year

Review and Delivery (Days 9-10)

Final review before client delivery.

Self-review:

Do statements balance?
Are results reasonable?
Are there any obvious errors?
Is documentation complete?

Client delivery:

Send financial statements
Include summary memo with key points
Highlight any issues requiring attention
Schedule call to review if needed

Implementing With a New Client

Initial Setup

When taking on a new dental client, invest time upfront.

Understand their systems:

What PMS do they use?
Who handles what functions?
What is their current close process (if any)?
What reports can they generate?

Assess current state:

When were accounts last reconciled?
Are there accumulated issues to clean up?
What is the quality of existing records?

Set up accounting:

Configure chart of accounts for dental
Set up vendors and standard transactions
Establish bank feed connections
Create recurring journal entries

First Close

The first monthly close takes longer. Plan for it.

Extended timeline:

Allow extra days for learning curve
Budget time for cleanup of prior issues
Expect more client communication

Document everything:

Record where to find each report
Note any client-specific procedures
Create a client-specific checklist

Identify improvements:

What made this close difficult?
What can be fixed for next month?
What needs client action?

Refinement

Each subsequent close should be smoother.

After each close:

Review what worked and what did not
Update procedures and checklist
Communicate improvements to client

Quarterly:

Assess overall close efficiency
Discuss process changes with client
Implement improvements

Working With the Practice

Client Communication

Effective communication prevents problems.

Before month-end:

Remind client of upcoming deliverables
Confirm timeline and availability
Flag any known issues

During close:

Communicate questions promptly
Provide status updates
Escalate blockers immediately

At delivery:

Summarize key findings
Explain any unusual items
Recommend actions if needed

Handling Delays

When clients miss deadlines:

Immediate response:

Contact client same day
Understand the reason
Establish new deadline

Prevent recurrence:

Discuss what caused the delay
Adjust process if needed
Consider earlier reminders

Protect yourself:

Document delays
Communicate impact on your delivery
Apply late fees if in your agreement

Training and Support

Help your clients help you.

Teach them:

Which reports you need
When to submit them
What issues to flag proactively

Provide tools:

Checklist of deliverables
Calendar with key dates
Contact information for questions

Regular feedback:

Thank them when process goes smoothly
Explain impact when it does not
Suggest improvements constructively

Scaling Across Multiple Dental Clients

Standardizing Your Process

If you serve multiple dental clients, standardize where possible.

Common elements:

Standard close checklist
Standard timeline
Standard report formats
Standard communication templates

Client-specific elements:

PMS differences
Account structures
Reporting preferences
Unique circumstances

Use templates and checklists that you adapt for each client rather than starting from scratch.

Scheduling Efficiency

Manage multiple closes without conflicts.

Stagger timelines:

Not all clients on same schedule
Spread workload across the month
Consider client dependencies

Batch similar tasks:

All bank reconciliations in one session
All financial statement preparation together
Similar PMS clients done consecutively

Technology Leverage

Use tools that help you scale.

Practice management portal access:

Direct PMS access when possible
Reduces dependency on client report submission
Enables you to pull data as needed

Bank feed automation:

Automatic transaction import
Reduces manual data entry
Speeds reconciliation

Multi-client dashboards:

See all client status at a glance
Identify which need attention
Track close progress across portfolio

Common Monthly Close Issues

PMS Does Not Match Bank

The most common issue in dental accounting.

Investigation steps:

Verify timing differences (deposits in transit)
Check for unposted payments in PMS
Look for non-revenue deposits in bank
Review adjustment activity

Resolution:

Identify specific items causing variance
Document explanation
Post corrections if needed
Discuss with client if significant

Credit Balances Growing

Accumulated patient credits indicate problems.

Causes:

Overpayments not refunded
Posting errors creating false credits
Refunds processed but not sent

Solutions:

Recommend refund processing
Identify posting errors for correction
Establish ongoing monitoring

AR Aging Out

Growing old AR suggests collection problems.

Your role:

Report the trend
Calculate impact
Recommend action

Client's role:

Work aged insurance claims
Pursue patient collections
Decide on write-offs

You report and advise; they decide and act.

Streamline monthly close for your dental clients with better reconciliation tools. Zeldent provides bookkeepers with automated bank-to-PMS matching, saving hours of manual verification and giving you clean data from day one of each month. See all your dental clients in one dashboard. Schedule a demo to see how Zeldent makes monthly close effortless.