What Is Positive Cash Flow in a Dental Practice?
Positive Cash Flow occurs when your cash inflows exceed your cash outflows over a given period — meaning your dental practice is generating more money than it’s spending.
This is different from reported profit or turnover. It’s about actual movement of cash into and out of your bank account.
Positive Cash Flow = Financial breathing space
Negative Cash Flow = Financial pressure or shortfall
Why Positive Cash Flow Matters for Dental Practice Owners
Many practices look profitable on paper — but still struggle with cash.
This happens when:
- You have high collections, but even higher overheads
- You’ve made large CapEx investments
- You’ve drawn too much too fast
- NHS clawbacks or tax bills hit suddenly
- You’re growing — but without cash control
Example:
- Collections: £72,000
- All outgoings: £63,000
→ Positive Cash Flow = £9,000
That £9K isn’t just surplus — it’s your buffer, reinvestment power, and peace of mind.
How Positive Cash Flow Is Measured
| Metric | Description |
| Cash Inflows | Patient payments, NHS income, plan revenue, finance provider funds |
| Cash Outflows | Staff, labs, rent, materials, marketing, tax, equipment, loan payments |
| Net Cash Flow | Inflows – Outflows |
| Positive Cash Flow | A surplus of inflow over outflow |
DentPulse tracks this in real time — not just monthly — so you can act before issues escalate.
How DentPulse Tracks and Supports Positive Cash Flow
| Feature | Function |
| LIQUIDIQ™ Dashboard | Shows daily, weekly, monthly cash flow position |
| CFFP™ Engine | Matches future income to upcoming expenses to prevent timing mismatches |
| PPP™ Overlay | Bases drawings only on real available cash |
| 12-Week Buffer Tracker | Builds and protects liquidity from OPEX shocks |
| CapEx + Loan Filters | Separates recurring cash from one-off events |
DentPulse makes positive cash flow visible, sustainable, and strategic.
DentPulse Tip™
Revenue is loud.
Profit is delayed.
But cash flow whispers the truth every day.
A consistently positive cash flow means you’re running a business — not surviving a hustle.
Related Glossary Terms
- Net Cash Flow – Total inflow minus total outflow
- Operating Cash Flow – Core practice cash before debt or investment
- CFFP™ – Cash Flow Future Pairing – Ensures upcoming expenses don’t erode current cash
- 12-Week Cash Buffer – The ultimate safeguard built from sustained positive cash flow
- PTP™ – Profit-to-Pocket – Protects personal drawings based on real liquidity
Glossary Summary Table
| Term | Meaning |
| Positive Cash Flow | When your cash inflow exceeds your outgoings — leaving surplus funds |
| Purpose | Indicates business sustainability and financial breathing room |
| Financial Impact | Enables timely payments, tax readiness, reinvestment, and take-home income |
| DentPulse Advantage | Tracks in real time and connects directly to liquidity, savings, and safe profit planning |
