Accountants For Dentists

NHS contracts operate on Units of Dental Activity that were set nearly two decades ago and require specialized accounting knowledge. The 2024 Dental Recovery Plan increased the current minimum UDA value to £28, yet some practices still operate on contracts with UDA values well below this threshold. We analyze your UDA contract value against local and national measures, helping you approach commissioners on issues around contract delivery clawback and valuation.
NHS income recognition is fundamentally different from private fee-per-item accounting. So we maintain running provisions to cover clawback risk based on actual UDA delivery throughout the year rather than treating contracted values as guaranteed income. The dental payment system uses equal monthly payments based on contract values, with a payment adjustment to account for over or under delivery occurring in September or October the following year. We track this timing to prevent cashflow surprises.

Contacting specialist dental accountants before purchase allows us to influence the deal structure in your favor when buying a practice. Most banks request financial forecasts prepared by a specialist dental accountant, and we apply stress tests to demonstrate viability. We guide you on whether to operate as a sole trader or purchase through a limited company. If buying property, we'll advise whether a separate investment vehicle provides more flexibility.
We review financials alongside your solicitor during due diligence and identify items within the sale agreement that carry tax consequences. We know the accounting norms within the dentistry sector and can recognize under or overspend on materials, labs, staffing and associated costs that non-specialist firms overlook.

Private practices are valued on commercial performance, making early preparation worthwhile. You should start retirement planning 5-10 years before your intended exit date. This timeline allows you to reduce reliance on the principal dentist by delegating clinical and managerial responsibilities while building financial performance ahead of valuation.
We help prepare practices where buyers examine financials, compliance records, contracts and operational processes during due diligence. Practices become more attractive and command higher prices when you improve EBITDA and reduce owner dependence. Each route has different implications for valuation and handover expectations, whether selling to corporates, private buyers or existing associates, and we guide you through them.

The CQC assesses dental practices based on five key questions: whether services are safe, effective, caring, responsive and well-led. 967 practices were assessed and 93 had regulatory breaches, with Regulation 12 (safe care and treatment) accounting for 45% of breaches and Regulation 17 (good governance) making up 82% of breaches. We ensure your financial reporting systems support compliance with good governance requirements and maintain well-laid-out documentation that accelerates any inspection process.