Cash flow is the lifeblood of your dental practice. You may think that your dental skills or friendly atmosphere should mean more than cash flow, but you wouldn’t be able to provide any of that to your patients if you’re out of business!
If you’re looking at the long term of your practice, you’ll notice how cash flow impacts your dental practice in many different ways. A few of these include:
At this point, it’s obvious that cash flow has a large impact on the way your practice runs its day-to-day operations. Let’s discuss what exactly cash flow consists of. To put it simply, cash flow is the amount of money that your practice makes, minus the amount of money your practice spends. It’s vital that you know this number, because if it’s too low (or if it’s in the negative) your practice may be in jeopardy.
Wheather you are a start-up dental practice or mature dental practice owner, it’s important that you make sure your cash flow is being properly assessed on a regular basis. A cash flow assessment by CTC National will determine the health of your finances as well as your ability to pay down debts (business and personal).
Additionally, if you’re looking to sell your practice anytime soon, a thorough cash flow assessment needs to be completed. Your potential profitability will be important to potential buyers and the results of the assessment can have an impact on your ability to sell your dental practice; especially if you’re planning to retire.
Make it a habit to regularly check your cash flow, and please contact CTC National to discuss a cash flow assessment. Our dental consultants are able to help with any concerns you may have.
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