What Is Amortisation in Dental Practices?
Amortisation is the process of gradually expensing the cost of an intangible asset over its useful life.
In the context of a dental practice, amortisation typically applies to non-physical business assets — such as goodwill from a practice acquisition, software licenses, or certain setup costs — spreading their cost across multiple years to reflect their ongoing value.
Why Amortisation Matters for Dental Practice Owners
While depreciation covers tangible assets like dental chairs or scanners, amortisation deals with the invisible — yet often valuable — parts of your practice.
For example, if you purchase a practice for £500,000 and £150,000 is allocated to goodwill, that goodwill can be amortised over, say, 10 years — reducing taxable profits by £15,000/year.
This matters because many owners mistakenly ignore or delay amortisation entries, missing out on tax relief and misrepresenting their real financial position.
What Are Common Amortisable Assets in a Dental Practice?
Amortisation only applies to intangible, long-term assets with a clear useful life. Examples include:
- Goodwill from purchasing a dental practice
- Software licenses or subscriptions over multiple years
- Practice acquisition costs (legal, due diligence, broker fees)
- Non-compete agreements or patient list values acquired
- Trademark or brand rights (if purchased)
Amortisation spreads these costs annually — smoothing your profit and aligning tax deductions with asset use.
How DentPulse Tracks Amortisation Automatically
| Feature | Function |
| Intangible Asset Register | Captures goodwill, software, and setup fees tagged as amortisable |
| Amortisation Schedules | Auto-calculates straight-line expense over asset life |
| Tax Forecast Sync | Feeds amortisation figures into Corporation Tax estimates |
| Goodwill Tracker | Highlights how much of your acquisition cost remains unclaimed |
| P&L Integration | Allocates annual amortisation into your accrual profit for year-end reporting |
DentPulse ensures you don’t miss these silent tax savers — while helping you avoid over- or under-amortising year to year.
DentPulse Tip™
Amortisation is invisible — but powerful. Many practices overlook these entries, especially when accountants don’t raise them proactively.
If you’ve recently acquired a clinic, invested in branding, or signed multi-year service contracts, DentPulse will surface amortisation opportunities — and bake them into your live tax and profit model.
Related Glossary Terms
- Depreciation – Spreads the cost of physical (tangible) assets
- Goodwill – The intangible value of a business over its net assets
- Corporation Tax – Amortisation reduces your taxable profit
- Chart of Accounts – DentPulse tags and categorises amortisable entries
- Capital Expenditure (CapEx) – Initial investment, whether tangible or intangible
Glossary Summary Table
| Term | Meaning |
| Amortisation | Gradual expensing of intangible assets over time |
| Key Assets | Goodwill, software, trademarks, acquisition costs |
| Financial Role | Reduces annual profit and tax through scheduled write-downs |
| DentPulse Advantage | Auto-tracks and schedules amortisation for accurate profit and tax planning |
