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Catch-Up Bookkeeping · Dentists · Licensed CPA

Catch-Up Bookkeeping for Dentists

Months or years behind on your dental practice books? We rebuild your production and collections, associate fee splits, lab fees, hygienist payroll and exempt-versus-taxable HST from your practice-management system and bank records, so your books are accurate, your returns are filed, and your DPC is CRA-ready. Licensed Ontario CPA. Flat fee. All fees include HST.

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Exempt vs Taxable Split Right
HST classified correctly across exempt and taxable dental services
Associates Classified Correctly
Associate dentists reviewed for employee versus contractor status
Back Returns Filed
Outstanding HST and T2 returns filed from clean DPC books

Behind on Your Dental Practice Books? You Are Not Alone.

A dental practice runs on daily production and collections, associate fee splits, lab fees, hygienist and assistant payroll, equipment leases and an exempt-versus-taxable HST split, all at once, with insurance receivables that sit 60 to 90 days. When you are chairside all day, the books are the first thing to slip, and once they are behind, the HST classification and associate-payroll issues compound quietly until a filing deadline or a CRA letter arrives.

We rebuild the whole picture from your practice-management system, bank statements and supplier invoices, so your production, collections, lab fees and payroll are complete and correct, and your HST split holds up to the spot-audits the CRA runs on dental practices. If you are an incorporated dentist behind on your books, our accounting for dentists team can bring the Dentistry Professional Corporation current. See also our dental accounting services and bookkeeping services.

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Gondaliya CPA team

Our Dental Catch-Up Bookkeeping Services

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Production & Collections Rebuild

We reconstruct production and collections and reconcile them to your practice-management system and deposits.

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Associate Fee Splits

We rebuild associate fee splits and review each associate for employee versus contractor status.

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Lab Fees & Supplies

We code lab fees, dental supplies and equipment leases into a dental-specific chart of accounts.

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HST Reconstruction

We split exempt and taxable services under Schedule V, capture input tax credits and file back returns.

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Hygienist & Staff Payroll

We reconcile hygienist, assistant and reception payroll, source deductions, T4s and associate T4As.

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Back Returns Filed

Once the books are rebuilt we file the outstanding HST and T2 corporate returns from clean numbers.

How We Catch Up Your Dental Practice Books

Every moving part of a dental practice's books rebuilt, period by period, until you are current. All fees include HST.

1

Scope the Backlog

We start by mapping exactly how far behind you are and which deadlines are live.

  • Confirm how many periods and locations are behind and what has been filed.
  • Identify the HST and T2 corporate returns that are overdue for the DPC.
  • List the records we have and what needs rebuilding from the practice-management system.
  • Prioritise the periods with filing deadlines and penalty exposure first.
  • Quote a flat fee for the whole catch-up before we begin.
2

Rebuild Production & Collections

The revenue number is the foundation, so we rebuild it from the source.

  • Reconstruct production and collections from Dentrix, ABELDent, Open Dental or Tracker.
  • Reconcile the practice-management numbers to bank and card-processor deposits.
  • Track insurance receivables and CDCP direct-billing that sit 60 to 90 days out.
  • Separate patient fees, insurance reimbursements and any retail sales.
  • Tie total revenue back to the numbers the CRA can already see.
3

Fix the HST Split

Exempt-versus-taxable errors are why the CRA spot-audits dental practices.

  • Classify each service under Schedule V: restorative and therapeutic care is exempt.
  • Treat purely cosmetic procedures and retail product sales as taxable.
  • Correct prior periods where HST was charged on everything or applied inconsistently.
  • Capture the input tax credits available on your taxable activities.
  • Prepare and file the back HST returns from the rebuilt numbers.
4

Sort Associate Classification

Associate misclassification carries retroactive CPP, EI and penalties.

  • Review each associate against the CRA control, tools and integration test.
  • Rebuild associate fee splits, typically 40 to 55 percent of production or collections.
  • Flag arrangements the CRA is likely to reclassify as employment.
  • Address Personal Services Business risk for an incorporated associate DPC.
  • Correct the T4 and T4A treatment for prior periods.
5

Code Lab Fees & Payroll

Dental costs need a dental chart of accounts, not a "supplies" bucket.

  • Code lab fees, dental supplies, equipment leases and professional dues separately.
  • Set up capital cost allowance schedules for operatory and imaging equipment.
  • Reconcile hygienist, assistant and reception payroll and source deductions.
  • Prepare the T4s for staff and the T4As for genuine contractor associates.
  • Rebuild overhead ratios so you can see cost per provider.
6

File & Keep You Current

Clean books are only useful once the returns are filed and stay filed.

  • File the outstanding HST and T2 corporate returns from reconciled books.
  • Reconcile owner draws and the salary-dividend mix to the T4 or T5.
  • Hand you clean books in QuickBooks Online or Xero to carry forward.
  • Pursue penalty and interest relief where a genuine circumstance applies.
  • Move you to monthly bookkeeping so the practice never falls behind again.

Free Dental Catch-Up Bookkeeping Consultation

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Case Studies

HST Charged on Everything

A practice had charged HST on all services for two years, including exempt restorative care, and never reconciled it. We reclassified every service under Schedule V, corrected the exempt-versus-taxable split, and re-filed the affected HST periods. The figures here are illustrative of the work we do, not a specific client file.

HST split corrected and re-filed

Associate Reclassification Avoided

A clinic paid two associates as contractors on T4A, but both worked set hours at one location on the clinic's equipment. We rebuilt the fee splits, documented the arrangement, and corrected the treatment before a CRA reclassification and retroactive CPP and EI. The figures here are illustrative of the work we do, not a specific client file.

Retroactive payroll exposure removed

Lab Fees Buried in Supplies

A dentist's prior bookkeeper had lumped lab fees, supplies and equipment into one account, hiding the real overhead. We rebuilt a dental chart of accounts, separated the costs, and restored accurate overhead ratios per provider. The figures here are illustrative of the work we do, not a specific client file.

Overhead ratios restored

Three Years Behind, DPC Filed

An incorporated dentist three years behind faced unfiled HST and T2 returns. We rebuilt production, collections and payroll period by period, fixed the HST split, and filed every outstanding return from clean numbers. The figures here are illustrative of the work we do, not a specific client file.

Three years rebuilt and filed

Where Dental Practice Books Go Wrong

These are the issues we find most often when we catch up a dental practice, and the ones the CRA looks at first.

ProblemWhy It Matters
HST charged on exempt careCharging HST on restorative services the Excise Tax Act exempts
Associate misclassificationContractors the CRA reclassifies as employees, with retroactive CPP and EI
Exempt vs taxable mix wrongCosmetic and retail sales not separated from exempt care
Lab fees buried in suppliesLumped costs hide overhead and lose deduction detail
Books not tied to the PM systemRecords that do not reconcile to Dentrix or ABELDent invite audit risk
Owner draws not reconciledDraws that do not tie to a T4 or T5 invite a CRA review

The CRA spot-audits dental practices and dental labs on the HST split. The exempt-versus-taxable classification under Schedule V is the single most important part of catching up a practice correctly. See our CRA audit resolution services.

HST and Associates: The Rules We Apply

The two areas dental practices most often get wrong, and exactly how we treat them as we rebuild your books.

ItemTreatment
Restorative and therapeutic careExempt from HST under Schedule V, Part II of the Excise Tax Act
Purely cosmetic proceduresTaxable, since there is no therapeutic purpose
Retail product sales at receptionTaxable, categorised separately from exempt services
Employed hygienists and staffPayroll with CPP, EI and income tax, reported on a T4
Genuine contractor associatePaid on a T4A or through their own DPC, if truly independent
Associate who is really an employeeReclassified onto payroll to avoid retroactive CPP, EI and penalties

Unremitted source deductions reach the dentist personally. Where associates or staff should have been on payroll and were not, the CPP, EI and income tax that should have been withheld become the corporation's liability with penalties and interest, and directors can be assessed personally for unremitted source deductions and unremitted HST, exposure that survives dissolving the professional corporation. Correcting classification and filing on your own initiative is treated very differently from the same facts surfacing in a CRA review, which is the entire argument for starting the catch-up now rather than next quarter.

What Our Dental Catch-Up Includes

  • Scoping the backlog and quoting a flat fee before we start
  • Rebuilding production and collections from your practice-management system
  • Reconciling to bank and card-processor deposits and insurance receivables
  • Rebuilding associate fee splits and reviewing associate classification
  • Classifying exempt and taxable services under Schedule V and reconstructing HST
  • Capturing the input tax credits available on your taxable activities
  • Coding lab fees, dental supplies and equipment into a dental chart of accounts
  • Reconciling hygienist, assistant and reception payroll, T4s and associate T4As
  • Filing the outstanding HST and T2 corporate returns from clean books
  • Handing you reconciled books in QuickBooks Online or Xero to carry forward

Know Your Exact Fee Before We Start

Flat fee, fixed in advance. All fees include HST. No hourly billing.

Calculate My Fee

Why Choose Gondaliya CPA for Dental Catch-Up?

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Dental Expertise

Production, associate splits, lab fees and the HST split handled the way practices actually run.

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Licensed CPA Ontario

A certified CPA team rebuilds and files, not just data entry.

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Flat Fee, Upfront

All fees including HST, no hourly billing, scoped before we start.

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Fully Remote

Your books rebuilt through our secure portal, wherever your practice operates.

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QuickBooks
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Xero
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Transparent Flat-Fee Dental Catch-Up Pricing

ServiceFeeScopeDetails
Catch-Up Scoping & QuoteFREEOne-timeWe map the backlog, confirm deadlines and quote a flat fee before any work begins.
Single-Location Catch-UpQuoted upfrontPer backlogProduction, collections, associate splits, HST and expenses rebuilt for every period behind.
Multi-Location Catch-UpQuoted upfrontPer backlogEach site rebuilt and consolidated, with back returns filed.
Back HST & T2 FilingIncludedPer returnOutstanding HST and corporate returns prepared and filed from clean DPC books.
Ongoing Monthly BookkeepingQuoted upfrontMonthlyOptional, keeps the practice current so you never catch up twice.

All fees include HST, so the number quoted is the number you pay. Payment is by Interac e-Transfer to info@gondaliyacpa.ca with auto-deposit enabled and the security question set to Not Applicable. Please use our pricing calculator for an exact figure.

Behind on the Books? Start This Week.

Flat fee, fixed in advance. All fees include HST. 30-Day Money-Back Guarantee.

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Dental Catch-Up Bookkeeping: Cities We Serve

Licensed CPA catch-up bookkeeping for dental practices across Ontario, delivered virtually.

TorontoMississaugaBramptonScarboroughMarkhamVaughanOttawaHamiltonOakvilleAll of Ontario

Frequently Asked Questions

What is catch-up bookkeeping for a dental practice?
It is bringing a practice's books up to date when they have fallen behind. We rebuild your production and collections, associate fee splits, lab fees, hygienist payroll and the exempt-versus-taxable HST split from your practice-management system and bank records, so the books are accurate, filing-ready and able to withstand the spot-audits the CRA runs on dental practices.
How far behind can my dental books be?
There is no backlog we cannot handle. Whether you are three months or three years behind, solo or multi-location, we rebuild the records period by period. The longer books sit, the more the HST classification and associate-payroll issues compound, so the sooner we start the less it usually costs to put right.
Why do dental practice books fall behind?
Dentists are chairside all day, so the books are the first thing to slip. Production and collections, associate splits, lab fees, hygienist payroll, equipment leases and the HST split all move at once, with insurance receivables sitting 60 to 90 days out. Falling behind is common; leaving it unfixed is what creates the CRA exposure.
How does HST work on dental services?
Most dental services are exempt or zero-rated under Schedule V, Part II of the Excise Tax Act, the test being purpose: restorative and therapeutic care is exempt, while purely cosmetic procedures with no therapeutic component are taxable. Retail products sold at reception are also taxable. Getting this split wrong is the most common and costly dental bookkeeping error, and we correct it period by period.
Why does the CRA audit dental practices specifically?
Because of the HST complexity. The exempt-versus-taxable line under Schedule V is nuanced, and the CRA spot-audits dental practices and dental labs precisely because so many get it wrong, charging HST on everything or applying inconsistent rules. Clean, correctly classified books are your best protection, and rebuilding that split properly is central to how we catch up a practice.
Are cosmetic procedures taxable?
Generally yes. A procedure performed to maintain or restore dental health is exempt, but a purely cosmetic procedure with no therapeutic purpose is a taxable supply. Teeth whitening and similar elective work usually fall on the taxable side, and once your taxable supplies are significant you may need to register and charge HST. We classify each service correctly as we rebuild.
How do you handle associate dentists in catch-up?
Carefully, because associate misclassification is heavily scrutinised. Many associates are paid as contractors on a T4A, but if the clinic controls the schedule, provides the equipment and the associate works only at one location, the CRA can reclassify them as employees, triggering retroactive CPP, EI and income tax plus penalties. We review each arrangement and correct the treatment for prior periods.
What is a typical associate fee split?
In most arrangements the associate receives 40 to 55 percent of their production or collections, with the practice retaining the balance for overhead and profit. We rebuild these splits accurately for each period so the associate's pay, the practice's revenue and the tax treatment all reconcile. Getting the split and its classification right is a core part of the catch-up.
Can you claim the input tax credits I missed?
On your taxable activities, yes. Because most dental services are exempt, input tax credits are limited to the taxable side of your practice, such as cosmetic work and retail sales, and the expenses attributable to them. When books are behind, these are often unclaimed. We capture the credits you are entitled to as we rebuild, which reduces the net HST you owe.
What records do you need to catch up my dental books?
Your practice-management reports from Dentrix, ABELDent, Open Dental or Tracker, business bank and credit card statements, lab and supplier invoices, payroll records, associate agreements and any prior filings. Where records are missing we reconstruct from the bank and card-processor data. We tell you exactly what to send and work from what you have.
Do you reconcile to my practice-management system?
Yes, and this matters. Books that do not reconcile to Dentrix, ABELDent, Open Dental or Tracker create audit risk on patient income and undermine lender confidence on refinancings. We tie your bookkeeping back to the production and collections in your practice-management system for every period we rebuild.
Do you file the HST returns I am behind on?
Yes. Once your books are rebuilt and the exempt-versus-taxable split is corrected, we prepare and file the outstanding HST returns for each period, claiming the input tax credits you are owed. See our HST return filing. Where penalties and interest apply, we advise on relief options.
Do you file my late corporate tax returns too?
Yes, that is usually the point of catching up. Once the bookkeeping is current we prepare and file the outstanding T2 corporate returns for your Dentistry Professional Corporation from clean numbers. See our catch-up corporate tax filing. Filing from reconstructed, reconciled books is what keeps the returns defensible.
Can you fix books another bookkeeper got wrong?
Yes. We often find HST charged on exempt care, lab fees buried under supplies, associate splits miscalculated, and books that never tied to the practice-management system. We review what was done, rebuild a dental-specific chart of accounts, and correct the coding period by period into a clean set of books you and the CRA can rely on.
How do you track lab fees and dental supplies?
We give them their own accounts. Generic bookkeeping lumps lab fees, supplies, equipment and dues into one bucket, which hides your real overhead. We build a dental chart of accounts so lab fees, dental supplies, equipment leases and professional dues are separate, restoring accurate overhead ratios and the deduction detail you need.
Do you handle equipment capital cost allowance?
Yes. Dental equipment is heavily capitalised, from operatory build-outs to imaging like CBCT and intraoral cameras, and it is claimed through capital cost allowance rather than expensed. As we catch up we set up the CCA schedules correctly so the deductions are right and the asset base is clean going forward.
How long does dental catch-up bookkeeping take?
It depends on how far behind you are, how many chairs and associates you run, and the state of your records. A few months behind can be days of work; multiple years across a group practice takes longer. We scope it upfront, give you a flat fee, and prioritise the periods with filing deadlines first.
How much does dental catch-up bookkeeping cost?
We quote a flat fee upfront based on the number of periods, your production volume and the number of providers, with no hourly billing, and all fees include HST. There are no surprises once we have scoped the work. Please use our pricing calculator for an exact figure.
What accounting software do you use?
We keep dental books in QuickBooks Online or Xero, configured with a dental-specific chart of accounts and integrated with your practice-management system and payroll. We rebuild your catch-up periods in the software and hand you clean, reconciled books you can carry forward. See our dental accounting services.
Do you handle hygienist and staff payroll?
Yes, as part of the catch-up. We reconcile hygienist, assistant and reception payroll, source deductions, T4s, and the T4As for genuine contractor associates. Where you need ongoing payroll we run it on Wagepoint. Getting the employee-versus-contractor line right across your team is central to how we rebuild the books. See our dental office payroll.
How does the CDCP affect my bookkeeping?
The Canadian Dental Care Plan adds a government-payer stream, usually direct-billed to Sun Life, alongside patient fees and private insurance. It has to be tracked as its own revenue source and reconciled like any receivable. As we catch up we separate CDCP, private insurance and patient payments so your production and collections are complete and accurate.
Can you catch up more than one location?
Yes. Multi-location and group practices are where books fall behind fastest, because production, associates, payroll and HST multiply across sites. We rebuild each location's records and consolidate them so you get both site-level detail and a clean overall picture of the practice, on one flat fee.
Will you keep my books current after the catch-up?
Yes, if you want. Many dentists move to monthly bookkeeping with us once the catch-up is done, with CRA-ready financials each month so the books never fall behind again. See our bookkeeping services. Staying current is far cheaper than catching up a second time.
What if I have unfiled returns and CRA letters already?
We can still help, and we should start now. We rebuild the books, file the outstanding HST and T2 returns, and deal with the CRA on your behalf. Where you are already under review, see our CRA audit resolution services. The sooner clean, correctly classified books are in front of the CRA, the better the outcome.
Do you reduce penalties and interest on late filings?
Where possible, yes. Filing the correct returns stops further penalties accruing, and where a genuine hardship or circumstance beyond your control caused the delay, we can pursue taxpayer relief on penalties and interest. We cannot promise a specific outcome, but we pursue every relief you qualify for.
Is my practice too small for catch-up bookkeeping?
No. A solo associate DPC benefits as much as a group practice, because the HST split, associate rules and DPC filing obligations apply regardless of size, and the penalties for getting them wrong do not scale down. Small practices are often where the exempt-versus-taxable classification quietly goes wrong.
Do you serve dentists outside Toronto?
Yes. We are a licensed Ontario CPA firm serving dental practices across Ontario and Canada, entirely remotely. Everything is handled through our secure portal, so wherever your practice operates, we can rebuild and maintain your books.
What makes dental bookkeeping different?
The mix. A practice runs exempt and taxable services, associate fee splits, hygienist payroll, lab fees, heavily capitalised equipment and insurance receivables all at once, inside a professional corporation. Generic bookkeeping misses the Schedule V split and the associate rules; we build the books around how a dental practice actually operates.
Do you provide financial statements once caught up?
Yes. Once your books are reconciled we produce clear financial statements with overhead ratios and cost per provider, so you can benchmark your practice and, where needed, hand lenders or the CRA statements they can rely on. See our accounting and bookkeeping services.
How do I get started?
Please book a free consultation and tell us how far behind you are, how many providers and locations you run, and which returns are outstanding. We scope the catch-up, quote a flat fee, tell you which records to send, and start with the periods that have deadlines. Book Free Consultation →

Meet Your Dental Bookkeeping Team

Sharad Gondaliya, CPA

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad advises dentists on catch-up bookkeeping, the HST split, associate classification and back filings across Ontario and Canada.

Vandana Goel, CPA

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana rebuilds dental production, associate fee splits, lab fees and HST period by period until the books are current.

What Our Clients Say

1300+ five-star reviews from business owners across Ontario and Canada.

Related Industries We Serve

Other professional and owner-managed practices we bring current and keep current.

Doctors

  • Medicine Professional Corporations
  • OHIP billing reconciled to the books
  • Salary and dividend mix reviewed annually

Healthcare Clinics

  • Multi-practitioner clinic bookkeeping
  • Exempt and taxable supply classification
  • Practitioner payroll and contractor review

Self-Employed Professionals

  • Incorporation timing advised honestly
  • HST registration and instalments kept current
  • Deductions documented properly

Small Businesses

  • Flat-fee books, payroll and tax
  • Catch-up work and ongoing compliance
  • One firm from cleanup to filing

Behind on Your Dental Practice Books? Let a CPA Catch You Up.

We rebuild your production, associate splits, lab fees and HST, file the returns you are behind on, and make your DPC ready for the CRA spot-audits dental practices face. Flat fee. All fees include HST.

Licensed CPA Ontario
1300+ Five-Star Reviews
HST & Associates Handled
Flat Fee, Including HST
Book Free ConsultationDental Accounting
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