4 out of 10 Vendor Invoices Have Errors — And DSOs Are Paying For It
Episode 57
Key Revelations:
4 out of 10 vendor invoices have an error - overcharges, hidden fees, or outdated pricing on essentials like payroll, tech, telecom, and merchant services
The top three biggest opportunities: lab fees, tech agreement & invoices, and merchant services ("legal loan sharking" hiding in plain sight)
Accrual accounting is your early-warning system - because it recognizes lab costs when the work is delivered (not when it's paid), errors surface as a real-time pulse check instead of hiding until the bill clears
One five-location DSO uncovered approximately $120,000 in annual savings, which contributed to a sale price that was more than $1 million higher.
The Hidden Profit Leak in Your Vendor Bills
Matthew Godley, CEO and co-founder of Spendly and the son of a dentist and dental hygienist, exposes the uncomfortable truth about where DSO profits are quietly disappearing: 4 out of 10 vendor invoices contain billing errors, practice owners are overpaying on nearly every operating expense without knowing it, and the leak compounds silently for years - yet almost no one has the time, bandwidth, or expertise to catch it before it costs them at the exit table.
"When should I expect my books to be closed each month?"
💡 The “Ask Ken” Question:
Ken's answer: Ideally, monthly financial statements should be completed and delivered by the middle of the following month so owners, board members, and other stakeholders have timely financial information. If you're in a temporary crunch and the business is relatively stable, Ken says an estimate based on consistent historical performance can be used as a short-term shortcut—but it shouldn't become the standard process.
AVAILABLE ON
(E.35) The Hard Truth About AI Vendors in Dentistry - Randa Seif, CaliDental
(E.1) How Outsiders Invaded Dentistry and Destroyed Billions - Brian Colao, Dykema
(E.5) The DSO Valuation Crash No One Talks About - Gareth Petsch, pH Partners
Top 3 Episodes Of The Dental Truth Project. Listen Now!
'Roll the Equity - How Smart Dental Founders Sell Their DSO'
Learn how sophisticated dental founders navigate a DSO sale
Selling your DSO is one of the most consequential decisions of your career. Roll the Equity: How Smart Dental Founders Sell Their DSOs is the playbook for founders who want to approach private equity transactions with clarity — not guesswork.
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