What Are Journal Entries in a Dental Practice?
Journal Entries are manual accounting records used to adjust, correct, or record financial transactions in your books that don’t flow automatically from bank feeds or invoices.
They’re the backbone of double-entry accounting, ensuring each transaction has a debit and a credit — keeping your financial statements balanced and accurate.
Why Journal Entries Matter for Dental Practice Owners
Most practice owners never touch journal entries — and that’s fine.
But without them, important adjustments like:
- Accruals for unpaid bills
- Deferred income on prepaid treatments
- Depreciation on equipment
- Payroll liabilities
- VAT corrections (if applicable)
…are either missed or misrepresented — distorting profit, tax, and cash flow reports.
Example:
A patient pays £2,000 upfront in January for Invisalign.
- Without a journal entry: Full £2,000 shows as income in Jan
- With a journal entry: Only earned portion shows as income, rest as Deferred Income (liability)
→ Aligns your reports with HMRC expectations and true business performance.
Common Journal Entries in Dentistry
| Entry Type | What It Does |
| Deferred Income | Shifts unearned treatment revenue to a liability until delivered |
| Accruals | Records costs incurred but not yet paid (e.g. lab bills) |
| Prepayments | Moves early payments for future services into current assets |
| Depreciation | Spreads cost of equipment over its useful life |
| Payroll Liabilities | Tracks unpaid employer NI, pensions, bonuses |
| Drawings/Dividends | Records non-salary director income movements |
DentPulse surfaces all entries needed to match revenue with delivery and costs with usage — even when your accountant misses them.
How DentPulse Uses Journal Entries to Improve Reporting Accuracy
| Feature | Function |
| Accrual Engine | Suggests journal entries based on timing of treatments, invoices, and bills |
| Deferred Income Alerts | Flags where prepaid treatment hasn’t been earned yet |
| Profit-to-Pocket™ Logic | Adjusts owner pay recommendations based on real (not inflated) profit |
| PPP™ and CFFP™ Sync | Ensures journal-based entries flow into tax and cash planning |
| Audit Log | Tracks all manual or system-generated entries for transparency |
DentPulse makes journal entries invisible to you, but critical to your accountant.
DentPulse Tip™
Revenue isn’t real unless it’s earned.
Profit isn’t real unless all costs are captured.Journal entries make sure your numbers reflect reality — not just receipts and invoices.
Related Glossary Terms
- Accrual Accounting – Tracks income and costs when earned/incurred, not when paid
- Deferred Income – Patient prepayments that aren’t yet earned
- Profit-to-Pocket™ – Uses adjusted profit after accruals and prepayments
- Chart of Accounts – The system for categorising every entry
- Prepayments and Accruals – Two sides of timing-based adjustments
Glossary Summary Table
| Term | Meaning |
| Journal Entry | A manual adjustment in your books to reflect timing, corrections, or non-cash events |
| Key Use | Aligns accounting records with true business performance |
| Common Areas | Deferred income, accruals, depreciation, drawings |
| DentPulse Advantage | Auto-flags missing entries and syncs them with profit, tax, and cash flow reports |
