What Is Cash Flow Projection in a Dental Practice?
Cash flow projection is the process of forecasting how much money will flow into and out of your dental practice over a future period — usually 3, 6, or 12 months.
It helps practice owners anticipate cash surpluses or shortfalls, so they can make informed decisions about spending, hiring, investment, and debt management.
Why Cash Flow Projection Matters for Dental Practice Owners
Dentistry is cash intensive. Payroll, labs, materials, and HMRC all demand payment on fixed dates — but patient payments (private, NHS, or plans) arrive unevenly.
Without projections, you’re forced to react when cash runs short, often dipping into overdrafts or delaying bills. With projections, you can:
- Anticipate HMRC tax payments months in advance
- Plan investments (new equipment, refurbishments) without straining liquidity
- Protect against silent cash flow gaps caused by seasonality or NHS timing
- Avoid “sleeping on overdraft” stress
Example:
- Projected May inflows: £180,000
- Projected outflows: £195,000 (due to Corporation Tax + staff bonuses)
- Forecast deficit: £15,000
The projection flags this in advance, so you can arrange financing, adjust expenses, or reschedule commitments.
Formula for Cash Flow Projection
Projected Net Cash Flow=Forecasted Inflows−Forecasted Outflows\text{Projected Net Cash Flow} = \text{Forecasted Inflows} – \text{Forecasted Outflows}Projected Net Cash Flow=Forecasted Inflows−Forecasted Outflows
- Inflows = patient fees, NHS receipts, plan income, financing
- Outflows = payroll, labs, rent, equipment, loans, tax
- Projection Period = 3, 6, or 12 months (rolling preferred)
How DentPulse Automates Cash Flow Projection
| Feature | Function |
| CFFP™ – Cash Flow Future Pairing | Matches future inflows to future outflows within a 13-week window |
| Tax Sync | Builds HMRC payment dates (Corporation + Self-Assessment) directly into forecasts |
| Scenario Planning | Models “what-if” changes (hiring, fee changes, loans) |
| LIQUIDIQ™ Overlay | Links projections to real-time liquidity scoring |
DentPulse turns projections from static spreadsheets into a dynamic decision engine.
DentPulse Tip™
“Cash flow projection is not about predicting the future perfectly.
It’s about spotting problems early enough to act with confidence.”
Related Glossary Terms
- Cash Flow Forecasting – Short-term (often 13 weeks) focus on liquidity
- Cash Flow Prediction – Estimating inflows/outflows using trends and real-time data
- Working Capital – Day-to-day cash available to cover obligations
- Liquidity – Ability to meet short-term commitments
- MCBTP™ (Minimum Cash Balance to Protect) – Proprietary DentPulse benchmark
Glossary Summary Table
| Term | Meaning |
| Cash Flow Projection | Forecast of future cash inflows and outflows over 3–12 months |
| Purpose | Anticipate surpluses/deficits, plan spending, avoid crises |
| DentPulse Advantage | Automated via CFFP™ + tax sync + scenario planning |
