What Is a Balance Sheet in Dental Practices?
The Balance Sheet is a financial statement that shows your dental practice’s assets, liabilities, and equity at a specific point in time.
It tells you what the business owns, what it owes, and what’s left for you as the owner — offering a snapshot of financial health, liquidity, and net worth.
Why the Balance Sheet Matters for Dental Practice Owners
While the Profit and Loss (P&L) shows how much you earned, the Balance Sheet reveals:
- Whether you can pay your bills
- How much working capital you have
- What’s tied up in assets or debt
- Your true financial strength — not just your monthly income
Example:
Your P&L shows a £128K profit, but your balance sheet reveals £22K in overdue loans, £19K in unpaid Corporation Tax, and just £14K in cash.
Without context from the balance sheet, your profit can mislead you.
What Are the Core Components of a Balance Sheet?
| Section | What It Includes |
| Assets | Cash, bank balances, equipment, receivables, goodwill |
| Liabilities | Corporation Tax, loans, overdrafts, lease obligations |
| Equity | Retained earnings, shareholder drawings, paid-up capital |
Formula:
Assets = Liabilities + Equity
The two sides must balance — always.
How DentPulse Brings Your Balance Sheet to Life
| Feature | Function |
| Live Balance Sheet View | Shows current assets, liabilities, and equity in real time |
| Net Worth Tracker | Calculates what the business is worth to the owner today |
| Tax Exposure Overlay | Adds unpaid Corporation Tax and Self Assessment into liabilities |
| Cash Flow Integration | Links changes in the balance sheet to actual cash movement (e.g., debtor changes reduce cash runway) |
| Investment Readiness Score | Benchmarks your balance sheet for loan/funding readiness |
DentPulse ensures your balance sheet is not just accurate — but useful for daily decision-making.
DentPulse Tip™
The balance sheet is your safety scorecard.
It shows whether your practice is solvent, overleveraged, or cash-light — even when revenue looks strong.DentPulse automatically updates your balance sheet with every financial change, offering true visibility without waiting for year-end accounts.
Related Glossary Terms
- Profit and Loss Statement (P&L) – Measures income and expenses over a period
- Working Capital – Current assets minus current liabilities
- Debt-to-Equity Ratio – Measures how reliant you are on borrowing
- Retained Earnings – Profits kept in the business over time
- Cash Flow Forecast – Uses the balance sheet to track expected inflows/outflows
Glossary Summary Table
| Term | Meaning |
| Balance Sheet | A statement showing assets, liabilities, and equity at a specific point in time |
| Core Formula | Assets = Liabilities + Equity |
| Key Role | Reveals net worth, debt risk, liquidity, and funding strength |
| DentPulse Advantage | Live, interactive balance sheet linked to tax, profit, and cash modules — no accounting lag or guesswork |
