When planning a dental practice transition in the Mid-Atlantic region—whether you’re a dentist in Washington, D.C., Maryland, or Virginia preparing to sell, merge, or bring on a partner—it’s natural to focus on major factors like valuation, buyer compatibility, and timing. However, one often-overlooked detail can make a significant financial difference: your Work in Progress (WIP) schedule.
Your WIP schedule reflects all dental procedures that have been started but not yet completed at the time of sale. It represents that “in-between” stage where production has begun, but final payment and completion are still pending. Understanding and accurately documenting this number is essential, as it directly affects how both the seller and buyer are compensated.
Why the WIP Schedule Is Critical
For dentists transitioning a practice in D.C., Maryland, or Virginia, a clear and accurate WIP schedule ensures fairness and transparency for both parties:
For the Seller:
It guarantees proper credit for time, materials, and production already invested in partially completed work—capturing the full value of your efforts leading up to the transition.
For the Buyer:
It prevents overpayment for work primarily completed before the closing date and helps project post-closing production and cash flow more accurately.
Without a well-defined WIP schedule, confusion can arise regarding ownership of unfinished procedures—especially when insurance reimbursements or patient payments arrive after the sale. Inaccurate or missing data can lead to frustration or even costly disputes between buyer and seller.
How to Properly Document Your WIP Schedule
Accurate WIP accounting requires collaboration between your dental CPA, DDSmatch Mid-Atlantic transition advisor, and office manager. Here’s how to ensure your documentation is complete and precise:
- Review Active Patient Charts:
Identify all dental cases that are started but not yet completed—such as crowns, bridges, dentures, orthodontics, and lab-related procedures. - Determine Completion Percentages:
Estimate the percentage of each treatment completed, using your practice management software and the work-in-progress percentages outlined in the purchase agreement. - Allocate Fees Fairly:
Define how production and collections will be divided before and after the closing date, based on the total treatment fee and any pre-paid amounts. - Document Everything Clearly:
Provide thorough, organized records to both parties to eliminate post-closing uncertainty and protect both sides from future disputes.
Following these steps not only safeguards the financial accuracy of your transition but also shows professionalism and respect between all parties involved.
Trusted Guidance from DDSmatch Mid-Atlantic
At DDSmatch Mid-Atlantic, we understand that a successful dental practice transition in D.C., Maryland, or Virginia is built on trust, accuracy, and clear communication. Our team specializes in guiding dentists through every step of the process—from valuation and listing to matching with the right buyer and managing crucial details like the WIP schedule.
With 8 decades of combined experience and a deep understanding of the Mid-Atlantic dental market, DDSmatch Mid-Atlantic ensures that no part of your transition is left “in progress” when it’s time to hand off your practice.
We help dentists across Washington, D.C., Maryland, and Virginia move forward with confidence—knowing every piece has been accounted for and every detail handled with care.
Written in collaboration with DDSmatch NY & Western PA.