Two types of bookkeeping systems are utilized for dentists. These include – accounts payable, and accounts receivable. Under accounts payable, all the debt that is owed by the practice to its suppliers, vendors, investors, etc. is recorded. Under accounts receivable all the money that the business is yet to receive by its patients or via other source of revenues is recorded. Knowing the money owed by the business, and owed to the business helps owners to keep a track on their debts and pending payments as well which is important with regard to financial management. They can also circle back to it whenever needed.