Accounts receivable within every dental practice tells a story. And that story varies within each practice depending upon the approach you take. It tells how big of a bank your dental practice has become, especially when you look at the amount of money that is owed to your practice after more than 90 days.
So what is the amount of A/R that the average dental practice has on its book for more than 90 days? How does the average practice’s A/R compare to its gross production? To find this out, we took data from Sikka Software over the last seven years. The data we are using for this comparison has been collected by Sikka Software from more than 12,500 dental practices from around the United States.
Here are the numbers..
Average Dental Practice A/R above 90 days
2011 — $41,111.14
2012 — $48,579.92
2013 — $51,584.39
2014 — $52,571.54
2015 — $49,598.06
2016 — $47,736.21
Average Dental Practice A/R to gross production
2011 – 78.29%
2012 – 85.28%
2013 – 92.98%
2014 – 98.66%
2015 – 101.27%
2016 – 94.79%
Do you know what your A/R is for more than 90 days? Do you know how it compares to your overall gross production? These are key numbers for any dentist to know. After all, they directly affect the health of your practice.
Andy Cleveland, dubbed as the A/R Ninja, is tonight’s keynote speaker on this exact topic at a dental study club locally and has been nice enough to invite us as well. While Andy’s insights won’t be shared publicly, each Dental Accounting Association will be fully briefed so we can drive down AR.
If you are looking to shrink A/R, there are many tools like SIKKA, TekCollect and the tactics that you deploy within your dental office.
Selecting a Dental CPA
While working with a local generalist CPA is convenient, a general CPA does not have the time, interest or in-depth knowledge of the dental industry to provide tools or guidance on managing Accounts Receivable. For example, Dental Accounting Association members utilize tools like SIKKA and TekCollect to better manage AR and shrink it proactively.