Dental Unfiltered

Episode 156- Top 3 Myths About Dental Accounting w/ Ken and Dallin Kaufman

Jan 6, 2026
Dallin Kaufman, a dental tech specialist, and Ken Kaufman, a seasoned dental finance executive, tackle myths around dental accounting in this enlightening conversation. They argue for accrual accounting as the more precise standard, linking revenue to services rendered and debunking common misconceptions about cash basis accounting. The duo also discusses pitfalls in practice management software, the importance of understanding financial reports, and how these insights can enhance practice valuation. A must-listen for dental professionals aiming for financial clarity!
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ADVICE

Ask How Many Clients Use Accrual

  • Ask a prospective CPA how many clients they maintain on accrual and treat 'none' as a red flag.
  • Move to a provider who runs accrual accounting if you want accurate EBITDA and valuation readiness.
INSIGHT

EBITDA Is A Cashflow Shortcut

  • EBITDA is primarily a shortcut to estimate cash flow, not pure profitability.
  • Converting to accrual typically raises EBITDA for growing dental practices because collections lag production.
ADVICE

Switch Early To Earn Valuation Credit

  • Use accrual accounting long-term to show good operations and earn credibility in valuations.
  • Converting months before a sale gives less confidence than being on accrual for years.
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