What Is Cash Flow Forecasting in Dental Practices?
Cash Flow Forecasting is the process of projecting your dental practice’s future inflows and outflows of cash — to ensure you can meet expenses, protect drawings, and avoid financial pressure.
Unlike profit forecasts, which look at earnings on paper, cash flow forecasting tracks actual bank movement — and predicts when money will land, leave, or fall short.
Why Cash Flow Forecasting Matters for Dental Practice Owners
You don’t run your practice on profit — you run it on cleared funds.
Without forecasting, you risk:
- Missing Corporation Tax or Self Assessment deadlines
- Dipping into overdraft to cover payroll or drawings
- Making investment decisions (e.g., hiring or new chairs) without knowing if cash will hold
Example:
You’re profitable on paper, but £32,000 in treatment plans are unpaid.
Meanwhile, £24,000 in fixed costs are due this month.
Without clear cash flow forecasting, you’ll feel rich and run dry — all in the same quarter.
What Does a Dental Cash Flow Forecast Include?
| Component | Description |
| Cash Inflows | Patient payments, NHS payments, plan income, loan draws |
| Cash Outflows | Payroll, lab fees, materials, tax, rent, finance repayments |
| Timing Logic | Matches when money is actually received vs. owed |
| Scenario Modelling | Tests what-if decisions (e.g., lower production, new hire, loan repayments) |
Best practice = 13-week rolling forecast
Updated weekly in DentPulse, not annually by your accountant.
How DentPulse Automates Cash Flow Forecasting
| Feature | Function |
| CFFP™ – Cash Flow Future Pairing | Pairs forecasted inflows with scheduled outflows — day by day |
| Timing Logic Engine | Tracks real patient payment patterns, not just projected revenue |
| 12-Week Buffer Overlay | Shows whether you can sustain fixed costs without new income |
| Scenario Sandbox | Test investments (e.g. new associate) without spreadsheet guesswork |
| Red–Amber–Green Alerts | Flags upcoming pressure points before they hit your account |
DentPulse transforms forecasting from an accountant’s spreadsheet to a decision engine you use daily.
DentPulse Tip
Profit is a theory. Cash is reality.
CFFP™ gives you line-of-sight into upcoming gaps — so you can adjust before they happen. That’s the difference between stress and strategy.
Related Glossary Terms
- CFFP™ – Cash Flow Future Pairing – DentPulse’s predictive cash logic engine
- 12-Week Cash Buffer – Minimum reserve to operate safely
- MCBTP™ – Minimum Cash Before Timing Pressure – Your unique liquidity alert line
- Burn Rate – How fast you spend cash relative to income
- Deferred Income – Income that’s earned but not yet available as cash
Glossary Summary Table
| Term | Meaning |
| Cash Flow Forecasting | Predicting when money will land and leave your account — not just earned vs. spent |
| Key Window | 13-week rolling forecast for short-term clarity |
| Strategic Role | Avoid panic, protect drawings, and fund growth at the right time |
| DentPulse Advantage | Real-time CFFP™ forecast engine that integrates with production, tax, payroll, and payment data |
