What Is Accounts Receivable (AR) in Dental Practices?
Accounts Receivable (AR) refers to the total income your dental practice has earned — but has not yet received — from patients, insurance providers, associates, or NHS payments.
AR is recorded as a current asset on your balance sheet and directly influences your cash flow, liquidity, and financial decision-making.
Why Accounts Receivable Matters for Dental Practice Owners?
Dental practices often focus on production, not collection. But earned income isn’t usable cash until it hits your bank.
High AR means you’ve done the work but haven’t been paid — reducing your ability to cover payroll, drawings, or reinvestment.
For example, if you’ve produced £22,000 in Invisalign cases but only collected £9,000 so far, your AR balance is £13,000 — which could be the difference between a healthy buffer or a near-miss on payroll.
What Does Accounts Receivable Include in a Dental Clinic?
AR includes all completed but unpaid income sources, including:
- Private treatments with payment plans
- Prepaid aligners or implants (part-paid cases)
- NHS contract revenue awaiting disbursement
- Outstanding insurance claims
- Unpaid associate receivables
- Failed direct debits or patient finance gaps
AR is recognised at the point of treatment delivery, not when the funds arrive.
How DentPulse Tracks Accounts Receivable Automatically
| Feature | Function |
| Treatment-Mapped AR | Tracks income by treatment performed, not money received |
| NHS Sync | Matches UDAs completed with NHS payment delays and variances |
| Aged Receivables Report | Segments AR by age: 0–30, 31–60, 60+ days overdue |
| AR + CFFP™ Link | Pairs expected inflows with future outflows to flag timing gaps |
| Buffer Forecast Overlay | Shows if unpaid AR will jeopardise upcoming cash reserves |
DentPulse shows real earned income — not just what’s landed in the account — helping owners forecast accurately and follow up on overdue payments.
DentPulse Tip™
Not all income is equal. Only collected income supports your buffer, drawings, and tax planning.
DentPulse’s treatment-based AR ensures you’re not fooled by inflated top-line reports — giving you a precise view of what’s truly in play, and what’s still pending.
Related Glossary Terms
- Accounts Payable (AP) – What your clinic owes to others
- Operating Cash Flow – What’s collected, not just what’s billed
- CFFP™ – Cash Flow Future Pairing – Matching AR inflows to AP outflows
- MCBTP™ – Minimum Cash balance to Protect – Exposure based on uncollected income
- Working Capital – Your short-term financial health (AR – AP)
Glossary Summary Table
| Term | Meaning |
| Accounts Receivable (AR) | Income you’ve earned but not yet received |
| Typical Items | NHS payments, payment plans, aligner or insurance balances |
| Financial Role | Determines liquidity accuracy and cash flow predictability |
| DentPulse Advantage | Real-time, treatment-linked tracking and AR timing risk alerts |
