Open Dental has built-in accounting tool that can be used independently by small offices.
In the Manage Module, click Accounting.
When set up correctly, certain transactions in Open Dental will automatically create accounting transactions in the Chart of Accounts.
Note: You can also set up deposits to automatically create accounting transactions in QuickBooks. See QuickBooks
- Set up automatic deposit entries
- Set up automatic payment entries (e.g. for cash payments)
Managing Accounts and Transactions
To access the Accounting section, in the Manage Module, click Accounting.
Setup: Set up automated deposit entries and automated payment entries.
Lock: Lock all accounting entries on or before a specific date, e.g. when closing out the year.
Reports: Generate and print end of year reports.
- General Ledger Details: A list of all accounting transactions in a date range.
- Balance Sheet: Total asset, liability, and equity as of the date selected.
Add, Edit: Add new or edit (and mark inactive) existing account types.
Close: Close the Accounting window.
Chart of Accounts: A list of existing account types and their balance as of today's date.
- As of Date: Change to view balances on a different day and click Refresh.
- Today: Click to refresh the list to show current balances.
Include Inactive Accounts: Include or exclude accounts marked as inactive.
- Check: Shows inactive accounts and their balances as of the date selected.
- Uncheck: Hides inactive accounts and their balances. Unchecked by default.
Double click on an account to add, edit, and view transactions within an account.
Set up the Chart of Accounts
The chart of accounts is a list of the accounts used to organize finances and divide expenses, revenue, assets, liabilities and equity. If you are not familiar with setting up a chart of accounts, we recommend consulting your accountant. There are five types of accounts:
- Asset accounts: e.g. practice checking account, equipment, cash box
- Liability accounts: Loans
- Equity accounts: Owner/Practice Contributions/Capital, Retained Earnings
- Income accounts: For accounts receivable (e.g. sources of revenue such as patient or insurance payments)
- Expense accounts: For accounts payable (e.g. expenses such as supplies, utility bills, employee benefits, etc.)
To create or edit an account:
- In the Manage module, click Accounting.
- Click Add to create a new account, or select an existing account, then click Edit.
- Description: Enter the account name.
- Type: Select the type of account.
- Bank Number: The bank account number to represent this chart of account (typically only for Asset account types).
- Row Color: Set a color to make the row easier to spot in the Chart of Accounts grid. Click on the color box to select a color.
- Inactive: Mark this account inactive to hide it from the Chart of Accounts grid.
- Click OK to save.
If accounts for automatic payments are set up incorrectly, transactions may be attached to invalid accounts and you may receive an error when trying to view old payments. Follow these steps to identify and fix the transactions.
- Update to the latest stable version.
- In the Main Menu, click Tools, Database Maintenance.
- Click Fix.
- A message in the log will indicate how many transaction have an invalid account: "Transactions found attached to an invalid account: X. All invalid transactions have been attached to the account called UNKNOWN. They need to be fixed manually."
- In the Manage module, click Accounting. A new account called UNKNOWN will show. Double click on it to view all transactions attached to an invalid account.
- For each transaction correct the account.
- Double click on the transaction.
- Uncheck the Simple box.
- In the Splits area, double click on the Unknown account.
- Click Change and select the correct account.
- Click OK to save the change and close the window.